Agenda Packets - 1984/10/22 - Laserfiche WebLink

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for coverage under a CHIP insurance policy at rates very competitive for the community and the coverages desired. It is important to the homeowner that the policy provided be at least equal in coverage, and probably lower or equal in cost as compared to his present insurance. Even though the city benefits financially when losses are minimized, claims settlement must he fair and expeditious if the CHIP is to maintain public confidence over the long term. 3) Safety and Security Device Insurance Credits Even though homeowners know that the installation of safety and security devices is brinehr.al, many will not do so unless there is some financial incentive The CHIP will encourage the insm;la;,pn Of such devices through premium discounts which, in aggregate, can lower the annual cosi o! tG: homeowners policy by as much as an additional 15°u 4) CHIP returns are defined as those premiums remaining after insurance company retention agent's commissions, and loss related costs are paid. Experience indicates that this concept appealing to homeowners. probably because most would rather see some part of the prewims they must pay in any event remain in the city to help defray the costs of city public safety programs Section 8 — The Home Safety and Security Analysis Program During the development of the CHIP, a group of fire and police officials, functioning as a sub -committee of the CHIP Steering Committee, developed model Home Safety and Security Analysis guidelines. The model is intended only as a list of important elements for cities to use in reviewing their present home "inspection programs or developing new ones. Each city must necessarily establish analysis procedures, elements, and forms in accordance with local policies, ordinances, and codes. Nevertheless, the model does represent an insurance view of what is important, and, within limits, what will be required for sound underwriting. The concept behind the analysis program is simply tg assist the homeowner families in minimizing If:o chances of becoming fire or burglary victims through oversight or inappropriate actions. The analysis pro- gram most be carried out in the spirit of community stdety and be designed to positively reinforce a high level of awareness of fire, theft and injury risks. Table 1 provides the suggested listing of home safely. security, and liability review subject areas. City Personnel Requirements Most cities will have several options as to how home sefety analysis programs will be conducted. In general. options include at least the following. 1) Current on -duty fire department engine company personnel, cross -trained in burglary and injury -prevention; 2) Trained non -uniformed city employees; 3) Trained and authorized volunteers (police and fire cadets, senior citizen group members, etc.). City preferences nationwide seem to focus on option 1. Cities surveyed do not anticipate hiring additional personnel or paying overtime wages. Cost Factors The home safety and security analyses can be provided at negligible cost to the city; most cities cunenUy have some such program. The only apparent direct cost, if existing employees are utilized in on -duty stalus will be related to vehicle usage. It has been pointed out that salary costs for fire department personnel ha.c already been incurred, and that fire and burglary prevention may be the highest and best use of s110 personnel, so long as response to emergencies is not compromised.