Property Risk Grading
Property risk grading classifies a property exposure by construction, occupancy, protection and exposure into a consistent rating scheme – ranging from standard risk to Highly Protected Risk (HPR) – providing a comparable basis for underwriting and pricing.
Criteria
The scheme rests on four factors: construction, occupancy, protection (notably sprinkler coverage and a works fire brigade) and exposure (for example neighbouring risks or natural hazards). Facilities that demonstrate above-average protection across all four dimensions achieve Highly Protected Risk (HPR) status; all others are treated as standard risks.
Application
Grading is carried out as part of the risk survey using standardised insurer or risk engineering scoring grids and is updated following material operational changes. Scoring or traffic-light systems combine individual findings into an overall class, enabling comparison across a portfolio.
Insurance relevance
The risk grade drives the underwriting decision, capacity, deductible structure and rate, and is often a precondition for access to specialised highly protected risk cover with broader terms. A downgrade caused by neglected maintenance or outstanding recommendations feeds through directly into policy conditions.