The property inspection process may be conducted in a variety of ways and may serve a number of different purposes. As a property owner, an insurance inspection may be something that causes concern, although it needn't be. Many property owners may be subject to an inspection on a regular basis, depending on their occupancy use, and often need to conform to the requirements of a number of different jurisdictions.
The property inspection business has seen some exciting technology advancements during the past two decades. Availability of rapid, wireless access to the Internet, mobile technology, microprocessing, high-resolution imaging from smart phones and affordable commercial drones are just some of the inspection technology areas making significant changes in the insurance inspection area.
Risk is a part of everyday life, and most of us do what we can to mitigate that risk when possible. This includes looking both ways before crossing the street, using seat belts or motorcycle helmets and driving safely when in our cars.
There are two major reasons why an insurance company requires a home insurance inspection:
Insurance, in its simplest terms, is the transfer of risk from a policyholder, or insured, to an insurance company, or insurer. Insurance risk is defined as the possibility of loss. Loss, in this case, can be defined as an undesirable financial outcome. While there are other types of risk and other types of loss in life that are not strictly financial, in the insurance business, it all revolves around money. It revolves around money and the risk of losing it through an unexpected event such as a house fire, an automobile accident or a sudden death. Money is pledged by the insurer in response to a covered loss and money is pledged by the insured, in the form of premium, as payment to the insurer for its willingness to accept this transfer of risk.
Conducting a residential inspection for insurance purposes has two main goals. To ensure that the policy being written accurately reflects the cost of rebuilding the property in the event that it's destroyed in a catastrophic loss, and to discover any liabilities that represent a potential danger to the property or to people visiting the property.
As a property insurance company underwriter, your number one job is to accurately assess the amount of insurance risk represented by a prospective policyholder, utilizing a number of different tools. Typically, this process may include:
Property inspections have long been a painstaking and time-consuming process that's critical to the insurance risk assessments you make in conjunction with your policy underwriting activities. Fortunately, thanks to emerging inspection technology, property inspections have been changing significantly, becoming faster, better and less expensive to complete.
Insuring a commercial property requires significant activities in order to arrive at an accurate underwriting decision. An important part of this process is a quality commercial inspection by a firm such as Insurance Risk Services, with more than 35 years of excellence in residential and commercial inspection history.
As an insurance underwriter, you may require that a residential inspection be made as part of the process of issuing a homeowner's insurance policy. There are several types of home inspections, ranging from a basic exterior-only photo report to an in-depth interior/exterior inspection that looks at everything from the foundation to the roof, inside and out. This type also includes checking the surrounding property, including any exterior structures such as fences, sheds, pools, detached garages, etc.