In the real estate industry, property maintenance and insurance go hand in hand.
Having a maintenance program in place not only helps your property’s value and attractiveness to new tenants, but also makes you more attractive to carriers when you’re looking for new insurance options.
Insurance carriers do their due diligence when looking at a potential client. They want to ensure that the property and its risks have been properly maintained over the years. Part of their pre-approval process includes valuations on property. There are many factors that affect a carrier’s pricing and terms. For example, the age of items such as electrical, roofing, and heating and cooling all play into how the carrier rates the risk. Having regular updates completed on a set schedule shows carriers that proper maintenance has been done and in turn minimizes the risk.
Below is a list of things to keep in mind to ensure proper maintenance:
- Ensure electrical assets are up to code and maintained per recommended guidelines.
- Have all HVAC equipment checked annually and verify that scheduled maintenance is performed.
- Check roofing semi-annually for soft spots, flashing gaps, and debris. Maintenance from the installation company should be followed.
- Perform tuck pointing as needed on brick buildings to avoid water intrusion.
- Confirm that the building’s sprinkler system complies with local codes and is tested and maintained by a fire system maintenance company. This will ensure proper use of the system in the event of a fire.
- Keep tree limbs trimmed to avoid falling branches and debris.
- Maintain painting on the building.
- Ensure parking and common areas outside are free from cracks and potholes.
- Have a complete maintenance program in place for inclement weather before it strikes.
These are all factors that contribute to the underwriting of your property insurance. For more information and direction, contact an MMA Advisor today.