Building inspections are for your benefit.
Telling the insured that the insurance carrier wants to do an inspection on their property can cause quite a stir. I often hear responses like, “it’s such a hassle” or “they’re just looking for areas to get us on for extra premium,” and the list goes on.
The truth is the insurance company is doing the inspection for your benefit and theirs as well. It’s meant to help uncover exposures that you may not be aware of and losses that could occur from a property or liability standpoint.
To put it all in perspective, below are seven things insurance companies look for when conducting a building inspection and its corresponding benefit.
- Inferred electrical panel scanning– Scans for hotspots within your electrical panel.
- Benefit – Doing electrical inferred scanning can catch early signs of hotspots within an electrical panel. Faulty wiring can be identified early and can stop an electrical panel fire.
- Roof inspections– Inspectors will assess your roof to look for wear spots, hail damage, life expectancy, and early signs of flashing issues.
- Benefit – Roofing inspections can stop leaks and water damage from occurring if caught in time. If you’re in an area that sees hail, it can also catch damage to roofing material, on-roof HVAC equipment, etc.
- Exterior property inspections– Inspecting your exterior for areas of liability and property damage.
- Benefit – Carrier addresses property damage that can create claims. It also assesses pavement, parking, and other areas where slip, trips, and falls can occur.
- Tenant review– Carriers can ensure your tenants’ operations follow safety and loss control standards.
- Benefit – The operations and amount of loss control tenants take part in directly impacts your losses and chances of you being pulled into claims and lawsuits.
- Interior inspections– These often include HVAC and boiler inspections, which can determine life expectancy, maintenance issues, proper winterizations, etc.
- Benefit – Finding any issues that can cause an equipment breakdown and/or failure.
- Life Safety– Check fire extinguisher life, loose flooring, emergency lighting, etc.
- Benefit – These safety items are checked for liability reasons and to ensure tenants and any patrons are well-equipped in an emergency.
- Fire suppression– Carriers will review the last inspection report and maintenance logs.
- Benefit – Annual checks and maintenance tests prove to be critical to make sure everything is operational, and pressures are adequate in the event of a fire.
As you can see, there’s nothing to be afraid of. At the end of the day, carriers are trying to help minimize your risk and help mitigate items that may be of concern down the road. The fewer losses you have, the lower your premiums will be. Maintaining your property and taking the advice of the carrier can help save against unexpected costs, deductibles, and lawsuits. It’s a win-win for everyone.
To learn more about proper safety, maintenance, and ways to reduce your overall cost of risk, contact an MMA advisor today.
