Dec 2024

Larger and more complex structures may present higher risks. Included here would also be amenities and features. Elements like decks, balconies, and garages can influence premiums. One factor that is commonly overlooked, but extremely important, would be commu nity governance. Strong governance structures can help mitigate risks. Factors We Can Control Several elements directly influence our risk profile and subsequent premi ums, and there are measures we can take to help make sure we are priced appropriately in the market. Clarifying insuring agreements is one of the first steps to ensure governing documents align with carrier interpretations. Rental limitation amendments are an effective way to keep competitive carriers interested. High rental ratio often equates to increased risk. HO-6 requirements tell underwriters that the primary coverage among owners is crucial. Deductible resolutions clearly define responsibilities for deductible payments. And adding safety features enhancing construction attributes can mitigate risk. Analyzing Loss Experience One of the biggest factors when considering a risk is a thorough assessment of loss history. The entire industry has to analyze the frequen cy and types of losses in order to determine appropriate pricing struc tures. Patterns, especially preventable ones, can reveal underlying issues. Practical measures can significantly enhance risk profiles. Regular inspec tions, water heater replacement pol icies, and chimney inspections can all help prevent incidents. Those are CONTINUES ON PAGE 46

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DECEMBER 2024