PROPERTY 101CRL Training ConferenceNOVEMBER 18, 2015

Lindsay Grimes

Vice President, Property Practice

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Agenda

• CRL Reinsurance Program Structure

• Underwriting a Statement of Values– RMS Formatting– COPE Data

• Commonly Misunderstood Coverages– Course of Construction– Historical Property

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Reinsurance Program Structure2015-2016

All Risk

Terrorism

Equipment Breakdown

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Underwriting a Statement of ValuesRMS Formatting

• Risk Management Solutions (RMS) Version 15.0

• Why is modeling important?– Program premium – Average Annual Loss (AAL)– Carrier attachment points and capacity – Probable Maximum Loss

(PML)

• Why does the format matter?– Accuracy of modeling output– Faster modeling results– Input into carrier modeling software

• CRL Statement of Values Template

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Underwriting a Statement of ValuesCOPE Data

• What is COPE data?

• Why is COPE data important?– Complete view of risk exposure– Differentiation of risks– Accurate and cost-effective underwriting decisions

• Primary COPE characteristics

Roof Geometry

Roof System

Covering

Roof Deck

Roof Pitch

Roof Coveraging Attachment

Roof Anchorage

Year Roof Built /

Rebuilt

Roof Attachment Structure

LongitudeLatitudeOccupancy Description

Construction Description

Year Built

Square Footage

Flood Zone

Sprinkler Type

Security Systems

Fire Alarms

• Secondary modifiers

Number of Stories

BasementFinished

Floor Elevation

Percent of Building Vacant

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Commonly Misunderstood CoveragesCourse of Construction

• Limit $25,000,000 per location– Subject to total project value not to exceed $25,000,000– Scheduled and non-scheduled locations– Including soft costs

• When to consider a stand alone Builder’s risk policy?– Project value exceeds $25,000,000– Lower deductible needed– Project term is outside program period– Specific coverage terms required

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Commonly Misunderstood CoveragesHistorical Property

• Included within blanket program limit

• Requirements for historical property reproduction value– Location marked as historical property on Statement of Values– Detailed appraisal including reproduction cost

Dated within 5 years from policy effective date

• Reproduction Cost– Like kind and quality materials compatible to those originally used

Includes authentic materials if available– Cost of skilled labor– Restoration of property as nearly as possible to its original condition