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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).

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