An acronym that stands for the four property risk characteristics an
underwriter reviews when evaluating a submission for property insurance:
- Construction (e.g., frame, masonry, masonry veneer, superior
construction, mixed—masonry/frame);
- Occupancy (how the building is being used for commercial
property and whether it is owner-occupant or renter-occupied for homeowners
and the number of families for which the building is designed);
- Protection (e.g., quality of the responding fire department
including whether it is paid or volunteer, adequacy of water pressure and
water supply in the community, distance of the structure to the nearest fire
station, quality of the fire hydrant, and the distance of the structure to
the nearest hydrant); and
- Exposure (risks of loss posed by neighboring property or the
surrounding area, taking into consideration what is located near the
property, such as an office building, a subdivision, or a fireworks
factory).