Computer-based BOP rating uses a short list of variables, and each one describes the risk itself. The outline lists (its numbering skips item iii):
Territory: climate variables and whether the location is urban or rural
Occupancy of the building
The insured's request for increased coverage
Construction: building materials affect how a building burns, so fire-resistive construction usually earns the best rate. Brick veneer over a wood frame is still classed as frame, and joisted masonry has masonry walls but combustible floors and roof.
Public fire protection rates the community's firefighting resources: the fire department and water supply serving the location. Extinguishers inside the shop belong to the insured's own premises, not to this variable. Occupancy is what the building is used for; a quick-service restaurant presents different hazards from an office.
Direction of the premium: a higher deductible shifts more of each loss to the insured and generally lowers the premium, while a request for higher limits gives the insurer more to pay and generally raises it. Facts about the owner personally, such as age, are not rating variables.