What carriers actually look at during a risk assessment
When an application is submitted, the carrier runs a multi-source evaluation before quoting bind-able terms. This is not a single inspection — it is a stack of automated database pulls, third-party reports, predictive models, and (for higher-value or higher-risk properties) a physical inspection. The outcome decides three things: accept or decline, what the premium is, and which endorsements, exclusions, or deductibles apply.
The data sources carriers pull in the first 60 seconds
| Source | What it reveals | Decision impact |
|---|---|---|
| LexisNexis CLUE | 5- to 7-year claims history on owner and address | Drives accept/decline and surcharges |
| Verisk A-PLUS | Parallel claims database; cross-checked with CLUE | Same as CLUE; catches missed claims |
| Insurance-based credit score | Financial behavior signal (where allowed by state) | Up to 30 to 50% premium swing in most states |
| Public property records | Square footage, year built, roof material, prior permits | Sets replacement-cost estimate |
| FEMA flood map / Risk Rating 2.0 | Flood zone and base flood elevation | Drives need for separate flood policy; affects mortgage |
| Wildfire score (Verisk FireLine, CoreLogic) | 0 to 30 wildfire risk score by ZIP and parcel | Score above 11 often = surplus lines or FAIR plan only |
| Distance to coast, hurricane zone | 1st-tier vs. 2nd-tier coastal exposure | Triggers separate wind/hurricane deductible |
| Public Protection Class (ISO PPC 1 to 10) | Distance to fire hydrant, fire department response | Up to 25% premium swing; PPC 9 to 10 = limited markets |
| Aerial imagery (EagleView, Cape Analytics) | Roof condition, debris, pool, trampoline, outbuildings | Drives roof-replacement requirements and exclusions |
| Past addresses and identity verification | Identifies undisclosed prior losses or fraud signals | Can trigger decline if discrepancies appear |
What is inspected on a physical inspection
For homes above a value threshold (often $500K to $1M, lower in catastrophe regions) and for any home flagged by aerial imagery, a third-party inspector visits the property. Standard checklist items include:
- Roof age, material, and condition (the single biggest factor)
- Electrical panel type (knob-and-tube, aluminum branch, Federal Pacific, Zinsco, Pushmatic are flagged)
- Plumbing material (polybutylene is typically a decline)
- Heating type (wood stoves and space heaters require disclosure)
- Foundation condition and visible cracking
- Deferred maintenance: peeling paint, rotted soffits, broken steps, loose railings
- Defensible space in wildfire zones (clearance, vegetation, fuel load)
- Dog breed verification
- Pool fence, diving board, trampoline, attractive nuisances
- Trip hazards on walkways
How risk assessment translates into a quote
Most carriers run a tiered system: Preferred, Standard, Substandard, and Surplus Lines / Decline. Each tier has its own rate, deductible options, and endorsement availability. A homeowner who is preferred at one carrier may be standard at another and declined at a third — the underlying data is the same; each carrier's appetite is different.
The four outcomes a risk assessment can produce
- Standard quote. Risk is within appetite; standard rate and terms apply.
- Surcharged quote. Risk is acceptable but priced up — older roof, prior single claim, lower PPC, dog breed.
- Quote with exclusions or higher deductibles. Roof on actual cash value, wind/hail at 2% or 5%, dog liability excluded, no theft coverage.
- Decline. Outside appetite; homeowner is referred to surplus lines, state FAIR plan, or specialty markets.
What the homeowner can change before reapplying
- Replace a roof older than 15 to 20 years. Single biggest acceptance lever.
- Update electrical (no Federal Pacific, Zinsco, aluminum branch).
- Add a four-sided pool fence with self-latching gate.
- Clear defensible space in wildfire zones.
- Fix the inspector's punch list within the 30- to 60-day window. Most surcharges and exclusions reverse on a follow-up inspection.
- Pay down debt and clean up credit. Insurance scores update; rerating at renewal often saves hundreds.
How Agents can help
Agents know which carriers run conservative versus permissive risk-assessment models and pre-qualify the homeowner against each carrier's published appetite before the application even goes out. This means fewer declines, fewer wasted credit pulls, and fewer adverse-action letters on file. For homeowners with mixed risk profiles — clean person, older home, or clean home with prior claims — Agents identify the carriers most likely to write the risk on standard terms and the surplus-lines fallbacks if needed.