After working with numerous clients on the quality of their underwriting data, there are three attributes of commercial properties that underwriters shouldn’t take for granted – construction classification, physically verifying the area, and the year built. The acronym COPE represents the four property risk characteristics that every underwriter should review when evaluating a submission for property insurance.
The Meaning of COPE in Underwriting
Construction – 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 – The quality of the responding fire department including whether it is paid or volunteer, adequacy of water pressure and water supply in the community, the distance of the structure to the nearest fire station, quality of the fire hydrant, and the distance of the structure to the nearest hydrant.
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.
Source: https://www.irmi.com/term/insurance-definitions/cope
“Secondary” COPE Data:
- Constant Evolution
- Geographically Prioritized
- Directly Related to Pricing
Specific Requirements Involves Multiple Participants:
- Insured & Appraiser (start)
- Agents
- Insurer
- Reinsurer
- Modeler / Scrubber
Secondary COPE data is frequently changing and each client is “custom”. You can see an example of what that looks like below.
Our team understands both your business’s insurance objectives and today’s underwriting requirements; including the importance of proof-of-loss documentation, custom COPE data, and TIV substantiation.
We would love to help you with your pre-loss evaluation. Book a meeting with Mark Hessel today to get started.