Residential and commercial property inspections are an important part of the insurance underwriting process because a thorough inspection will provide you with the data essential to determine an accurate risk profile of the property being considered for a policy. In addition, information regarding tips relating to risk management and risk prevention may also be made available.
This can be invaluable to both you, as the insurer, and to your client, as the property owner. While an insurance inspection will help tell if a property is safe and structurally sound, any problems found and brought to the attention of the property owner will aid in developing their risk management and prevention activities.
Uncovering risky conditions and/or activities during a residential or commercial property inspection will help you, as an insurance underwriter, better determine the advisability of issuing an insurance policy for a particular property and, if a policy is issued, what amount of premium to charge for the coverage given. The information obtained from your property inspector, when added to other statistical data available, should provide a good picture of the risk profile of the property under consideration.
Insurance Inspection Options
There are a number of different insurance inspection types that may be used in conjunction with your insurance underwriting needs, including:
- Basic exterior inspection with photos, including all exterior walls and rooftop. Also includes all out-buildings
- Exterior observation inspection with photos, to include information relating to occupancy type, construction type, roof materials and condition, proximity to available fire protection water source and overall general condition, noting any apparent hazards
- Exterior observation and measurement inspection, to include all of the above plus a detailed diagram and replacement cost estimate
- High value interior inspection, includes all of the above plus interior photos and complete interior inspection for condition and hazards
Insurance inspections serve two main purposes:
- To help you, as a property insurance underwriter, from mistakenly underwriting a policy for a property that exhibits conditions of unusually high risk. This will help avoid having to pay claims for incidents stemming from conditions where undue risk existed and should not have been underwritten
- To establish and verify a realistic estimate of reconstruction costs if a property is damaged or completely destroyed in an incident covered by an issued policy
The Property Inspection Needed
Some residences should only require a basic exterior inspection with photos to verify general condition, location and to identify any obvious external hazards. This basic inspection may be ordered for residences that have just been newly built and passed all inspections required during construction.
More detailed inspections may be required for older homes, larger, more complex properties, and for most commercial properties. It’s important for any commercial property engaged in the use of hazardous materials or other risky activities to receive the most thorough, detailed inspection.
Insurance Risk Services is capable of handling whatever type of insurance inspection you require and providing a full report on the conditions found and any recommendations to mitigate any problems noted. Contact them for further information or to schedule their services.