Understanding the Gross Up Factor

You can enter a gross-up percentage to adjust the class exposure based on a minimum occupancy level (the number of days that each tenant occupies their unit in the building). You can set up the gross up factor at these levels:

1. Lease level.

2. Account override level.

3. Class level.

The system uses the percentage that you specify and the computation method to determine a gross-up factor that reflects the percent of occupancy for the building and the occupancy for each unit.

This table lists each computation method and describes the action that the system performs:

Computation Method	Description
B, P, X, or Y	The system multiplies the class exposure by the gross-up percentage and includes it as part of the total exposure. These computation methods do not adjust the gross-up factor based on occupancy.
N or U	The system divides the area of the building (based on the E.P. code from the building log) by the average occupied area that the system calculates using computation method X. The system adjusts the gross-up factor based on the percentage specified on the expense participation record, if necessary.
O or V	The system performs the same calculations as N and U, but derives the gross-up factor by using the result of computation method Y (average occupied area of the property) as the numerator.