1. Overview of Property Insurance
Chapter 10
Risk Management for Financial Planners
Insurance needs and rationale analysis
Use a systematic approach to gather information about a risk
Checklists and questionnaires with specific questions
An analysis of financial statements that may disclose exposures
Flowcharts depicting relationships between operations
Loss analysis that reveals past exposures
Onsite inspection
Analysis of the exposure
Frequency
Severity
Copyright 2008, The National Underwriter Company

2. Overview of Property Insurance
Chapter 10
Risk Management for Financial Planners
Evaluation of real and personal property exposures
Real property
Building (manufacturing plants, office buildings, apartments, condominiums, and houses)
Structures (swimming pools and fences)
Land on which building and structures are located
Personal property—items not included in real property category
Furniture
Clothing
Fax machines
Finished stock
Copyright 2008, The National Underwriter Company

3. Overview of Property Insurance
Chapter 10
Risk Management for Financial Planners
Evaluation of real and personal property exposures (cont’d)
Property Exposures (C.O.P.E.)
Construction
Types of construction (e.g., frame, masonry, materials used for flooring, roof)
Occupancy
How will the property be used
Copyright 2008, The National Underwriter Company

4. Overview of Property Insurance
Chapter 10
Risk Management for Financial Planners
Evaluation of real and personal property exposures (cont’d)
Property Exposures (C.O.P.E.) (cont’d)
Protection
Kind and quality
Public and private
Fire extinguishers, sprinkler systems, training, equipment, and proximity of public fire department
Exposures
Outside sources that create the chance for loss
Copyright 2008, The National Underwriter Company

5. Overview of Property Insurance
Chapter 10
Risk Management for Financial Planners
Evaluation of auto risk exposures
Personal
Private autos, pickup trucks, vans, and trailers
Factors determining frequency and severity of hazards
Age
Sex
Marital status
How car will be used
Type of car
Occupation of the insured
Where the vehicle is garaged
Copyright 2008, The National Underwriter Company

6. Overview of Property Insurance
Chapter 10
Risk Management for Financial Planners
Evaluation of auto risk exposures (cont’d)
Business auto policy
Vehicles used in the course of business
Whether owned, leased or hired by the organization
Factors determining frequency and severity of hazards
Whether the organization leases vehicles
How many vehicles in the fleet
Will individual’s vehicles will be used for business purposes
If customers vehicles are driven by employees (e.g., valets)
Are vehicles used for public transportation
Copyright 2008, The National Underwriter Company