Inspection 101

Insurance underwriters use inspections to gather information about the risk they are considering underwriting. Inspections can provide valuable information about the property, its condition, and any potential hazards or risks that could lead to a loss. Based on the findings of the inspection, underwriters make several decisions, including:

Whether to underwrite the risk: Underwriters use the information gathered during an inspection to determine whether they want to underwrite the risk. If the inspection identifies significant hazards or risks, the underwriter may decline to provide coverage.
What coverage to offer: If the underwriter decides to provide coverage, the inspection findings can help determine the appropriate terms and coverage limits for the policy.
Pricing: Inspections can help underwriters determine the appropriate premium for the policy based on the level of risk and exposure associated with the property.
Recommendations: Inspectors can identify potential issues that could lead to a loss, such as faulty electrical systems or outdated plumbing. Underwriters can use this information to make recommendations to the policyholder on how to mitigate risks and improve the property's safety.

In summary, inspections provide underwriters with essential information that helps them make informed decisions about whether to underwrite a particular risk, what coverage to offer, the appropriate premium to charge, and recommendations on how to mitigate risks.

Top 10 Things to Remember

1. Make sure you understand Insured vs Tenant

2. Be sure you are measuring risk and then confirming with Insured or using public records

3. Make sure all Special Instructions questions are answered

4. Make sure there is a narrative that explains who owns risk, who occupies risk and for what purpose

5. Photos should be from a distance. Front, left, right, rear so all of the risk is visible.

6. Make sure to take photos of any recommendation that will be added to the case and label the photos stating what the REC is

7. If there are vacant units, we will need SF of that unit noted in narrative

8. Check for fire hydrants before leaving area, they are often on the street corners

9. Make sure to provide accurate construction type including siding, roof material and foundation

10. Ask the Insured if they know when utilities have been updated or approximate age or estimate based on inspection

Time Service

Why is it so important? The 60 Day Law

Time Service is one of the most important elements of an inspection.

In New York State, the insurance industry operates under the “60 Day Law”. This means that once the agent has an insured signed up for an insurance policy, the insurance company has 60 days to decide if they will provide that coverage. On the 61st day, the insurance company is legally bound to provide that coverage for the length of the policy contract.

A loss control provider normally has 30 days to conduct the survey. As the field rep, you have 20 days out of our 30 days.

That is why updating your survey and following the 2&1 guidelines are critical.

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SurveyManagement.mp4

Managing Cases - Logistics

We typically see that successful reps are proactive and engaged in handling their assigned cases.

That typically means that they start working on a case as soon as it is received.

It is the first call that makes all the difference. That typically tells you if this will be an easy case or one that needs chasing down. Doing it early, makes all the difference.

Listen in on Tom's pro tips that can safe you a lot of head ache!

What Can I Do To Improve My Time Service?

Getting your cases in on time should be a priority. Don’t sit on cases. If for any reason you cannot make the due date, let us know by putting a note in the case

NOTE: Once a case is assigned to you the countdown begins. Make a plan!

What’s The Big Deal About Time Service

Providing Excellent Service! The Gardner Group is not interested in average time service. We are interested in SUPERIOR time service.

This is how you do it: REMEMBER THE 2-1 RULE

First Day: Check for and review all received new surveys. The most important action you can take is to start work on your survey as soon as it is assigned to you.

Within 1-2 days: Contact the insured (not mandatory for exterior homeowners). At the Gardner Group we typically make two attempts to contact the insured (2 days apart) before we call the agent to assist us. We make one call to the agent (again within 2 days of insured call) if the insured has not responded. If the agent does not respond or cannot assist, you are to reach out to Gardner Admin (Jen or Kelle) to advise of same. We will contact the underwriter and advise on how to proceed. Companies have different non pro procedures so we cannot submit as non productive without approval.

Within 3-7 days: Perform field survey. Try to visit each part of your territory every 10-12 days to allow you cover your territory in a timely manner. Remember though, you only need to AVERAGE 14 days time service….so some cases you can do in 9 days and others you can do in 18 days. You have to balance it all out, and that is the art of field management.

Within 7-18 days: Complete the survey and send in.

Each step of the way needs to be updated by a status report! A weekly update on all cases is a good rule of thumb.

FAQ for First Cases

What is the call process to make first contact with an insured?

Remember the 2-1 Rule: two call attempts to insured (where you are able to leave a message), then one to agent if no response. Request that the agent contact the insured and ask them to call you. Agents may also give you an additional phone number or email to try. If no progress after agent call or if the agent is also non-responsive add a case note so we can contact underwriter and advise you on how to proceed.

What do I do if I get a busy, disconnected, or wrong number on the order?

In this case make an immediate call on the same day to the agent for updated contact information. If the agent has none, or does not respond to you, notify Jen or Kelle in case notes so we can let the underwriter know. If you do get a better number, try two more attempts.

How many days should I wait to try another call?

Upon assignment, make first call within 1-2 days. Call attempts should be every 2 days up until the point where you make contact with insured, or until a case note has been added stating no progress. Usually by day 7 an appointment should already be scheduled or we should have been notified by you of any issues via case notes.

How often do I update case notes in VSP?

Each contact attempt should be input to VSP case notes. Update when an appointment is scheduled, when case is field done, or if there are any issues or problems that need to be addressed. It is important to keep notes up to date so that we can advise the underwriter of the status of the inspection when they ask. If your notes are up to date, then we do not have to bother you!

What happens if I arrive at a scheduled appointment and the insured is a no-show?

Always try to confirm a scheduled appointment the day before if possible. This reminds the insured of the appointment and may save you a wasted trip if they have to reschedule. If the insured is not on site at the appointment time, call upon arrival to let them know you are there waiting. Wait 10-15 minutes and if they do not show or call you back, leave one more message stating that you have to leave to go to your next scheduled appointment. Update case notes and do not go back out for a 2nd trip unless approved. If the insured calls to reschedule that’s fine, but approval is needed before you actually go back out.

When should I complete a Non Productive Report?

Each company handles “non pro” differently. Always wait for Jen or Kelle to let you know it is ok to submit a Non Productive report. This usually happens if a policy has been cancelled or the insured is completely non responsive after a certain waiting period. Sometimes you must wait a month before closing something out, so we will let you know on a case by case basis.

What do I do if there is a covid-related issue on my case?

If you encounter an insured that expresses ANY concern with inspection due to covid, not wanting someone on site or any access related situation, please immediately submit a HELP message from the case. We will try and work with the insured to do a remote survey and we will remove the case from your list and you will get a non-productive fee.

Help! Who do I contact if I have a question?

The fastest way to get an answer to a question is to send a HELP message. There are multiple staff from the RepSuccess team who monitor that feed and will try and respond ASAP. You also have all the staff emails here.

Recommendations

Identifying defects is your main responsibiity as an inspector. The ViewSpection app helps you capture defects as you find them and associate photos with the defect.

Always be looking for situations which may result in a insurance claim. This may be property oriented or it may be human oriented (slip, trip and fall for example).

As Tom explains, "your role as a rep is to make recs!"

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Non- Pro Cases

We make every effort to complete all cases however sometimes there are circumstances that prevent us from being able to do this. When this happens we change the case to a Non Productive Survey. There are 2 types of Non Pro cases: with and without visit.

Non Pro With Visit

A Non Pro with visit is typically used when you are stood up for a scheduled appointment. Your first action should be to call the Insured, if no answer then call Gardner Group office and advise them. We will call the Underwriter who may say that an exterior is okay or they will say to send in the non pro. When you have a Non Pro with a visit- you should take a photo of the building to prove that you were there.

Non Pro Without Visit

A Non Pro without visit is most common and used when:

You have tried to call the Insured to set an appointment 2 times, the agent once and you still have not heard from the Insured. Put a note in the case asking if you can Non Pro. For most customers we will have to contact the UW and ask them how to proceed. Sometimes they say they will accept an exterior, other times they say Non Pro.
Customer Instructions - some (not all) customers have in the instructions on your ticket that if you have made 2 calls to the Insured and 1 call to the agent to secure an appointment and you have not heard back from the Insured, you can send in a Non Pro report. We still want you to verify with Gardner Group Admin before submitting.
You cannot find or access the location. You have called the Insured and the agent and either the address is incomplete , or it's incorrect, or perhaps a road is in accessible. Put a note in the case stating this and ask us how to proceed.
There are other reasons to Non Pro- Insured has cancelled his policy, Insured refuses access to complete inspection. etc. --Status your reasons and a Manager will reply.

NOTE: The key to Non Pro cases is communication. Status all your attempts then use this info to fill out your Non Pro form. It is important that you show you reached the agent and requested their assistance and that you document what they tried to do for you. When the form is completed it should be clear that you made every attempt to get the Insured and agent to comply. Full names and contact numbers should be included. There is a narrative box at bottom of form for you to detail a short summary.

COPE

The insurance industry uses a simple acronym that can be used to describe the basic rating factors for a home (or building). The acronym is C.O.P.E. and it stands for Construction, Occupancy, Protection and Exposure. While we have already discussed COPE in our introductory section, it bears reviewing how it relates to the coverage itself.

Let's explore each of these in more detail:

Construction

This describes the materials used to construct the home, including framing, support and interior finishing. If the house is wood frame with wood siding for example, there will likely be a higher premium than a wood frame home with brick walls. Why? Brick doesn't burn as fast as wood. If a fire starts in the home, the 15 minutes the fire department takes to respond could result in much more damage! The best construction materials are fire-resistive. You can expect deep discounts for homes constructed with fire-resistive materials.

Construction also takes into account the heating and cooling systems of a home. For example, if the home has a fire place or wood burning stove (for primary or secondary heating), the odds of a fire are increased. Also, central heating and cooling systems are usually rated lower than individual units.

Occupancy

While this piece of the acronym lends itself more readily to commercial buildings (and takes into account aspects not likely included in a residential home), it can also be applied to personal homes in a different manner.

If your home is a primary residence, it will likely be well protected, as under normal circumstances, there will typically always be somebody there. However, an identically built second home may cost quite a bit more to insure from a property standpoint, as there may not be someone there to look after it. The same is true for a home which is vacant due to foreclosure or renovation. Conversely, the liability portion of the premium for a second home may be lower than a primary residence because the less it is occupied, the lower the odds someone may be injured on the premises and file a claim for damages.

If a home is a rental property, there may be a lower premium because the contents of the property are not insured (if the house is not provided furnished to the renter).

However, rental homes are often not kept up as well by tenants because there may be no pride of ownership, which can result in an increased chance, due to morale (not moral) hazards, of suffering a loss.

Protection

The protection portion of C.O.P.E. deals with public and private protection from fires. Basically, there are discounts built into homeowner insurance policy programs for various protection devices and services. What are the insurance companies looking for in private fire protection?

Smoke detectors
Fire extinguishers
Fire alarms
Sprinkler systems

When it comes to public fire protection services, there is really only one comprehensive source the insurance companies use. The Insurance Services Organization, known as ISO, developed a rating system for protection class (PC) graded from 1-10. A score of 1 is the best and a 10 is the worst (and most expensive). Many standard companies won't insure homes in PC 9 or higher.

Ultimately, your address is assigned a class code based on its proximity to a fire station and water source. In the example used for wood or brick construction, we saw this in action. If your home is two minutes from the fire department, the premium will be lower than a house 15 minutes away from the same fire department!

This also explains why we focus so much on the presence of fire hydrants! The insurance carrier will adjust the premium rate for a house that is 100 away from a hydrant compared to a home that does not have hydrant within 1000.

FIRE PROTECTION CLASSIFICATIONS

Some companies use ISO Public Protection Classes (also called National Board Class). It is a number from 1 to 10 that refers to the public protection facilities in a geographic area. The classes reflect the quality of public fire protection, road conditions, and water pressure levels and availability. The classes heavily emphasize fire protection and safety control. Lower numbers reflect better facilities and protection, as shown by the following:

A Protection Class10 has no fire protection (or very low protection).
A Protection Class 9 has little fire protection and no hydrants within 1,000 feet of the property. Both 9 and 10 classes are considered unprotected classes.
Some protection class directories show divided classes (for example 5/9 or 6/9). This means that the lower class is allowed if a hydrant is within 1,000 feet of the residence, but the higher class is to be used if the nearest hydrant is over 1,000 feet from the residence.

Many Mutual companies use a more simplified Fire Protection Rating. The location of the building(s) determines its fire protection classification as defined below:

Protected | Building is located within 1,000 feet of a fire hydrant and within five road miles of a responding fire department.

Partially Protected | Building is located over 1,000 feet from a fire hydrant but within five road miles of a responding fire department.

Unprotected | All others.

Exposure

An example of an undesirable exposure for a home may be its proximity to a coastline in an area subject to hurricanes. Property on the Florida coast and on the entire Gulf of Mexico is substantially more costly to insure than homes further inland. Insurance companies use a tier system to determine a home's risk for damage from water and wind damage as a result of hurricanes. The tiers are measured in distance from a coastline, with the cost and acceptability ranging vastly from one to the next.

Exposure is calculated by a building's proximity to other hazardous buildings or structures. An example would be a commercial building (or home) located next to a fireworks factory in a city. You would expect to pay quite a bit more for insurance than if you were next door to a fire station.

What equipment do I need to have?

-- measuring tapes, wheels, camera, ladder?

New Rep FAQ;s

What do I wear?

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What kind of training do you provide?

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Photographing

You will see specific photographs to capture for each type of inspection that we complete for that specific risk type.

The ViewSpection app does all the busy work for you from uploading, dropping into the correct section in the report and inserting the label. That unto itself saves hours.

So don't hesitate to take photos at an inspection. They are worth 1,000s of words!

Photographing.mp4

Dogs & Liability

Insurance companies claims with regards to dogs have risen dramatically over the years, as a result Underwriters are extremely interested in knowing that dogs exist, their breed and disposition. Their main focus is reducing the risk of a loss as dog bites currently account for about one-third of all homeowner’s claims. Industry wide, dog bite claims average $26,000.

Since a significant percentage of the population owns dogs, insurance companies have choices to make on how to cover dogs.

Some of their options:

They can refuse to write a policy if there are dogs in the home. This option limits them and they run the risk of alienating dog owners who don't have aggressive animals.
They can set pricing higher to cover potential losses. This option can cause them to lose business to companies that don’t employ this practice.
Write an endorsement and charge dog owners more money for their policy. This may encourage owners of non desirable breeds to flock to you creating an even greater risk .
Identify which dogs account for the majority of bites. Then expand underwriting rules to eliminate these exposures by making them ineligible for coverage. No policy, no exposure. This option means less business and fewer premium dollars, but fewer large losses. It also does not alienate dog owners with less aggressive breeds. Very few companies choose this option.

Insurers reserve the right to not write policies with breeds that are considered Hot Button Hazards: Pit Bull Terriers, Doberman Pinscher and Rottweilers, or any mix of these breeds. Some carriers are also concerned with Akita, Alaskan Malamute, Chow, German Shepard, Presa Canario, Husky, Staffordshire Terrier and wolf hybrids

As an Inspector your job is to:

Get a photo of the dog-Dogs that belong to tenants should be included in your inspection. If for any reason you cannot get a photo of the dog then you must put in narrative why you didn’t get it. For example, dog was in house and this was an exterior inspection. or….dog owner would not allow photo of dog.
Identify the breed. Mutt or mixed breed is not an acceptable answer. Get the breeds in the mix ie: shepard/husky mix. Ask the homeowner (when possible) or go to this site to help you identify the dog http://www.nextdaypets.com/directory/breeds/All~1.aspx
Determine disposition – Ask homeowner (when possible) if there is any bite history. How was the dog when you saw it?

Terminology

Understanding Insurance Acronyms

Have you ever wondered what all those acronym means on your inspection ticket when you’ve been assigned an inspection? Here’s a guide that will better assist you in understanding those confusing Insurance acronyms.

ACV– Actual Cash Value

B&C – Building and Content

BOP -Business Owners Policy

BPP – Business Personal Property

BR – Builders Risk

CGL – Commercial General Liability

CIM – commercial inland marine

COPE – Construction, Occupancy, Protection, Exposure

CPP – Commercial Property Policy

CPrL – contractors professional liability

DBA – Doing Business As

E&O – Errors and Omissions

F&C – Fire and Casualty

GKLL -?Garage Keepers Legal Liability

GL – General Liability

HPR – highly protected risk (property)

HVAC – heating, ventilating, and air conditioning

ITV – Insured To Value

LRO – Lessors Risk Only

M&C – Manufacturers and Contractors

NP – named perils

NVD – no value declared

OCP – Owners Contractors Protection Insurance

OLT – Owner, Landlord, Tenant

P&C – property and casualty

PD – property damage

PL – professional liability

RC – replacement cost

RM – risk management

SCOPE – supervision, construction, occupancy, protection, exposure

SFR – semi-fire resistive

SMP – Special Multi-Peril

SPECS – specifications

TLO – total loss only

TOL? – Type of Loss

TOP – Type of Policy

TPA – third-party administrator

U&O – use and occupancy

UL – umbrella liability

UPS – uninterruptible power system

UST – underground storage tank

VOR – value of risk

WC – workers compensation

Property Coverage - is for Buildings!

Casualty Coverage – is liability – people can get hurt

Lessors Risk – LRO- owns the building but leases it out to others

Bailee Coverage – property owned by others in an insured building

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