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the home is owner occupied or rented. In a commercial building, the type of business is the
main consideration. Knowing what the business is allows the underwriter to research the type
of business (retail shoe store versus woodworking shop) and the hazards associated with each
occupancy to ask the appropriate questions. If the building houses more than one business, the
other occupancies are relevant as well, because a loss in an adjoining business often results in
damage to all occupants of the building. Therefore, if the risk being considered is thought to be
a very safe risk, like a retail shoe store, but shares a building with higher risk occupancy, such as
a woodworking shop, the additional hazard of the higher risk occupancy would be considered in
rating.
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