The overall risk score gives an immediate measure of a policy's riskiness, presented on a flat five-point scale (A–D, F). An A-rated policy contains very few high-risk locations, whereas an F-rated policy may contain multiple locations with high risk of loss.
How the overall risk score is calculated
The overall risk score for a policy is calculated from a weighting of each peril (fire, liability, flood, windstorm).
Fire generally has a greater impact on overall risk, but a flood risk of 'F' has the maximum possible impact.
|The overall risk score provides an immediate overview of the riskiness of each policy. It represents the weighted average of four individual peril scores for fire, flood, windstorm and liability. In this example, location-level peril scores for five addresses are aggregated into policy-level scores and combined into an overall risk score.|