Please use property and building coverage form we use for underwriting in Texas for this Case Study: Apartment Building Risk Assessment

Scenario:

Factors to Consider:

Building Construction and Age: It is important to assess the construction materials used in the building and determine its age. It is also necessary to determine if any recent renovations have improved its safety features.

Occupancy: The type of occupants in the building and their behaviors should be evaluated. It is necessary to assess if there are any high$-$risk activities or potential hazards associated with the tenants.

Surrounding Environment: The surrounding environment should be examined for any factors that may increase the risk of fire, such as nearby industrial facilities or densely populated areas.

mitigation measures or adjustments to the policy terms to ensure adequate coverage and protection for both the insured and the insurer.

Property Insurance Assessment Report

Property Details:

: Name: Downtown Apartments

Address: $123$ Min Street Dallas, TX

: Building Type: Apartment Building

Construction Type: ISO Class

tion Year: $192$

Building Description:

primarily of wooden floors and structural components. Heavy glass is located on the bottom floor. Standard windows are located on all sides of the buildijng

Renovations and Updates:

In recent years, the Downtown Apartments building has undergone significant renovations to modernize its facilities and enhance safety features. These renovations, conducted within the past five years, include:

Replacement of outdated electrical wiring with modern systems, including the installation of circuit breakers and updated outlets.

: Impleding of heating and ventilation systerns to improve energy efficiency and comply with building codes.

Loss History Report

Property Name: Downtown Apartments

Address: $123$ Main Street, Dallas, TX

Building Type: Apartment Building

Construction Year: $192$

Lass Incidents:

Date: July $15,20$

Nature of Loss: Fire

Date: March $10,20$XX

Nature of Loss: Water Damage

issue and mitigate further damage, but several apartment units sustained significant water damage, leading to temporary relocation for affected tenants.

Date: November $5,20$

Nature of Loss: Burglary

escape with stolen goods. Police investigations are ongoing, but no suspects have been apprehended yet.

Recommendations:

implemented to minimize the likelihood and impact of future incidents.

Total Insured Values

Building: $$379,260,00$

Contents: $$189,630,000$

Business Interruption: $$100,000,000$

Rate

Low: $\mathrm{.}05$

Medium: $\mathrm{.}10$ High: $20$

Decision Making:

The underwriter needs to review the given information to decide whether to approve or reject the insurance application. They need to consider the following questions:

Is the age and construction of much concern to the underwriter? What risks may exists?

$-$Would the presence of nearby bars and restaurants increase the risk of fire or other incidents? Are their other exposures worth noting?

Are the fire protection systems sufficient to prevent potential risks?

Are there any specific clauses or endorsements that should be added to the policy to address identified risks? You dont need to name them all, just review the policy and tell me what might be worth adding.

$-$What is the overall risk profile of insuring this apartment building? Do you accept or reject the application. What premium would you consider charging? What rate did you choose and why?