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Inspection PrepÂ
Most homeowners insurance policies provide a package of coverages. The main types of coverage are described below:
Dwelling: Pays for damage to your house and to structures attached to your house, such as an attached garage or attached barn. This includes damage to fixtures, such as plumbing, electrical wiring, heating and permanently installed air-conditioning systems.
Other Structures: Pays for damage to fences, tool sheds, freestanding garages, guest cottages and other structures that are not attached to the house.
Personal Property: Reimburses you for the value of your possessions, including furniture, electronics, appliances and clothing that become damaged or lost even when they aren't on your property, such as those at an off-site storage locker or with your child at college.
In this section we will focus on Outbuildings (Other Structures). As stated, outbuildings are NOT JUST outbuildings. The category includes fences, tool sheds, freestanding garages, guest cottages and other structures that are not attached to the house. When we look at an outbuilding as an inspector, the main thing we need to know is if the building is insured. If the building is not insured for property loss (typically termed, uninsured), then it is covered under the policies liability policy which we will review.
Figures show that the average claim for items in outbuildings was approximately $1,000. And if you thought that was high, the most expensive home insurance claim made after an outbuilding burglary was completed was over $48,000! So it is wise to provide excellent protection and security to the outbuildings as it may have a positive impact on the home protection as well!
Outbuilding Security Tips
Outbuildings can contain a lot more than a rusting trowel or a couple of half-empty cans of paint. Apart from expensive power-tools, they often hold sports equipment from bikes to canoes, patio furniture, children's toys and barbecues; so the total of value of outbuilding contents can run well into the thousands.
Here are a list of some things to look for or recommend in regards to improving protection of outbuildings:
Make sure that the doors of outside buildings are adequately secured with a lock that can't be broken easily: a rusty padlock is not usually sufficient to keep burglars out.
Also pay attention to door hinges; if the hinges can be easily screwed off, the locks will have no value.
At least one screw needs to be replaced by 5mm bolts and nuts that cannot be removed from the outside.
Extra locks on drawers and cupboards inside garages will put off thieves who want to access the equipment inside them.
Ensure that outbuilding windows are secured. Obscured glass is also useful as it means that passing burglars are not tempted by the goodies on display.
Adding security flood-lighting and an alarm to an outbuilding is a good idea if there are particularly high-value items to protect.
Typically, EVERY building needs to be evaluated by the inspector while conducting a loss control survey. By determining how the outbuildings are insured or not insured, will drive the amount of information that you need to provide.
If an outbuilding has property coverage, the following actions are required:
Measure the building if it is larger than 10' x 10'
Take photos of the building. Best practice is front and back
Determine use and contents of building
Determine if utilities are in place to building
Identify defects
Show building on diagram as requested by customer (each customer has unique requirements)
If an outbuilding has only liability coverage (no property coverage), the following actions are required. REMEMBER: The insured may term buildings with no property coverage as being uninsured:
Take photos of the building. Best practice is front and back
Determine use and contents of building
Identify defects. Defects will be limited to liability ONLY hazards. You would not make a recommendation for lack of a fire extinguisher or a missing shingle. However, if the physical defect could lead to a liability injury, you would make a recommendation. For example, a open panel box is both a property hazard due to potential to short and start a fire as well as a liability exposure for electrocution to a person.
Show building on diagram as requested by customer (each customer has unique requirements)
Special Situation: Entering Outbuildings
This caution typically applies to inspecting outbuildings when you are doing a exterior inspection on a homeowner's property and the insured has not been contacted. DO NOT ENTER the outbuildings. This is just best practice and reduces problems later. If you take a picture of an interior of a outbuilding SHOW THE WINDOW OR DOOR FRAME in the photograph to demonstrate that you were not inside the building.
Additionally, it is best to always ask permission to enter buildings when you are on the phone with the insured or are interviewing them on site. Of course, absolute best situation is to have the insured accompany you on the survey.
It has happened that a building has burned down or something has gone missing and last person in that building was our inspector.