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.
Understanding insurance means understanding risk. As an insurer, your job is to accurately determine the level of insurance risk represented by each of your potential policyholders. The risk is the chance that something unexpected and harmful may occur to cause a financial loss covered by the policy. In property insurance, this may be the loss or damage of property or possessions or an incident that causes someone to become injured and which the policyholder may be held liable.
Building inspections performed as part of an insurance company's underwriting process are beneficial to both the insurer and the insured for several reasons. There are numerous levels and types of insurance inspections, from conducting basic level exterior photo reports to the highest value exterior/interior inspections. The most comprehensive inspections include interior and exterior photos and a detailed observation accompanied by detailed notes and diagrams, including replacement cost estimates. They also include a close analysis of the state of the heating/cooling, plumbing and electrical systems.
As a property insurance underwriter, you need certain information necessary to complete an accurate risk assessment for a property you're considering insuring. Obtaining this information will also provide an idea of a property's current condition and value.
There's an old saying that applies well to parents and other supervisors: “Don't expect what you don't inspect.” In the insurance business, a comprehensive property inspection is an important aspect of an accurate underwriting process for determining the viability and cost of a property insurance policy.
A simple definition of risk is “an uncontrollable, potential loss of something of value.” The entire insurance industry is built around the concept of risk and risk sharing, where the insurer accepts a portion of an insured's financial risk in exchange for an agreed upon amount of money, or premium.
Through ever-improving technological advancements, the field of property inspection management continues to get better in both ease and effectiveness. To property insurance companies involved in risk analysis for the purposes of performing efficient underwriting of policies, this means improved and more detailed inspection results. Quite often, it also represents fewer dollars spent on the inspection process.
There are a number of factors about commercial buildings that make them riskier to insure than private residences. The number of people who visit commercial buildings, and (in some cases) the type of work performed in those buildings are some of the risks to consider. As an insurer, a thorough commercial insurance inspection is a critical risk mitigation tool.
Home inspections all across this country every single day, and no one is more invested in the results of those inspections than insurers. At Insurance Risk Services, we are in the business of inspecting homes in order to help insurance companies mitigate their own financial risk. When we are approached to provide an insurance inspection our clients select from one of four options.