Top things to cover
Review the case order for special instructions that are unique to that case
Also, review the customers instructions as each customer is unique and needs different things
If you need to do an interior inspection, start reaching to insured the first day you recieve inspection order
Make a pre-call to all exteriors to let them know WHEN you are stopping by, even if you just leave a message
Status all your contact attempts in ViewSpection
Schedule all your cases, even your exteriors in ViewSpection so staff and customers can see progress
Most residential surveys require a diagram so staff can do a replacement cost. You will use Apex or at times, a hand drawn diagram. You need to mechanically measure the dwelling.
Photos
The more the better
When in doubt, take it
For exterior pics, don't get to tight in on the Front, Side and Rear pics....include the whole side or take 2 pics to show all
Interior pics (when doing a interior survey) are important to tell the "story" of the home
Be careful to ask permission to take pics inside and avoid people in your pics
EVERY defect/recommendation, needs a photo. (of course, something like a missing smoke detector, you should take a dummy picture to get past the photo requirement)
We cannot do pics outside if it is to dark
Inspection Prep
At minimum, take a look at the property on Google Earth, Google Satellite or StreetView
Look for outbuildings
Pre-draw diagram
Get familiar with surrounding exposures
Sometimes it helps identify a bad address or location before you get there!
In this video join Penny Fenner and Jim Gardner as they walk through prepping to complete a residential survey as well as what the quality control or review process looks like.
Penny has been with the company a long time and passes on a bunch of pro tips!
These are real reports. Review them and let them be a guide to what the finished report should look like.
Missing diagram when diagram is required.
Discrepancy between what is on the ticket for occupancy and what the inspector marks as who occupies. For example, ticket says tenant occupied, inspection is marked insured occupied. Unless there is an explanation for the discrepancy, it is returned.
Marking no interview, but stating things in the inspection that would need to be verified by an interview with insured or person on site. That leads to the question, if no interview, how did you know/verify this?
Missing photo of one or more sides of the dwelling - if not accessible, need to state the reason why (gate blocking rear, trees too close for photo, etc.)
Missing information on outbuildings - sometimes there is nothing filled out for outbuildings when outbuildings can be seen in the pics. If the outbuilding in the pic is not on the insured's property, state that. Otherwise, fill out the outbuilding section.
When there is a pool or hot tub, fill out the pool/hot tub section.
Missing pics of dogs - need a pic or a good reason why there isn't a pic (unless insured was not on site and dog was only heard.)
When an interior is ordered, at the time of scheduling the appointment it should be made clear to insured/contact that interior access to utilities will be needed. Many times, an inspector will submit an interior inspection without the interior/utility information and simply say "interior wasn't accessed". We need to know before the report is submitted that the interior could not be accessed, what the reason for no access was and we need approval from UW to submit an exterior.
Performing an insurance inspection on a residence involves a thorough examination of the property to determine the risks and liabilities that could affect the insurance policy. Here's a checklist of things to consider when conducting an insurance inspection on a residence:
Exterior Inspection
Check the roof for any signs of damage or wear and tear.
Inspect the gutters, downspouts, and drainage systems for proper function and any blockages.
Examine the exterior walls for any signs of damage or deterioration, including cracks, holes, or peeling paint.
Look for any potential safety hazards on the property, such as uneven or damaged walkways or driveways, loose railings or steps, or overhanging trees and branches.
Interior Inspection (if required)
Check for any signs of water damage, such as water stains or mold growth.
Inspect the electrical system, including the wiring, outlets, and circuit breaker box, to ensure that it is up to code and functioning properly.
Look for signs of insect or rodent infestations.
Check for any safety hazards in the home, such as loose or damaged handrails, non-functioning smoke detectors, or exposed wiring.
Coverage and Documentation
Verify that the home is insured for the appropriate amount and that the coverage includes any necessary riders, such as flood or earthquake coverage.
Document any potential risks or liabilities that may impact the insurance policy, such as a swimming pool, trampoline, or high-risk pets.
Check that any recent home renovations or improvements have been properly documented and permitted.
Remember, the above checklist is not exhaustive, and there may be additional considerations depending on the type of residence being inspected and the insurance policy in question. It's always best to consult with the company staff for any specific requirements if you have questions.
Don't let your clothes be a distraction. Casual dress is fine. Avoid the following
Extreme Logo type apparel and hats
Shorts
Torn pants
Arrive in a car or truck and not a motorcycle
Do not bring an extra person (not an inspector) along on the walk through. Leave them in vehicle
Do not bring your pet with you on the inspection
Do not start taking photos from your car or before you have knocked at the door
The end consumer of the report is typically the carrier underwriter. They have a lot of boxes to check before they can complete a policy and provide coverage. The inspection is just one part of the process but it is an important one.
60 Day "Clock". The underwriter can choose to NOT insure a property for any reason during the first 60 days of the policy. After that, it becomes VERY difficult to get off a policy for any reason. That is why getting the inspection to the UW by our due date is so important.
Property Damage: Underwriters will look for any signs of property damage, including water damage, mold, structural issues, and fire or smoke damage.
Safety Hazards: Underwriters will look for any safety hazards on the property, such as broken staircases or handrails, moldy surfaces, and other hazards that could cause accidents.
Age of the Property: Older properties may have more wear and tear and require more maintenance, and the insurance policy needs to take these factors into account.
Environmental Concerns: Underwriters will look for any environmental concerns in and around the property, such as proximity to a flood zone, hurricane-prone areas, or potential wildfire risks.
Structural Integrity: Underwriters will examine the property's foundation, walls, and roof to ensure they are structurally sound and do not pose any risks or liabilities.
Electrical and Plumbing Systems: Underwriters will look at the property's electrical and plumbing systems to verify that they are up to code, functioning properly, and do not pose any safety risks.
Unpermitted Improvements: If the homeowner has made any unpermitted improvements to the property, underwriters may require the owner to correct them before insuring the property.
Home Security: Underwriters will evaluate the property's security measures, including the quality of the locks, presence of alarms, and other security measures that could affect the risk of theft.
Pets: Some pets, such as certain breeds of dogs or exotic animals, may pose a risk to the property and its occupants, and underwriters will evaluate the risks associated with any pets that reside in the property.
Insurance History: Underwriters will look at the property's insurance history, including any past claims, to evaluate the potential risk and determine the appropriate insurance policy.
Here is a list of exterior and interior pictures that an insurance inspector should take during a residential inspection for the insurance underwriter:
Exterior Pictures:
Front, rear, and side views of the property
Roof, gutters, and downspouts
Siding, including any damage or wear and tear
Driveway and walkways
Garage, including doors and automatic openers
Fences, gates, and retaining walls
Decks, patios, and outdoor living areas
Landscaping, including trees, shrubs, and any potential hazards such as overhanging limbs or roots
Interior Pictures:
Kitchen, including all appliances, countertops, and cabinets
Bathrooms, including fixtures, showers, and tubs (usually just one bathroom as a sample, ask permission to take photo)
Living room, including flooring, walls, and any potential hazards such as loose carpet or exposed wiring
Bedrooms (usually not required unless special request or defect present)
Basement, including flooring, walls, and any potential hazards such as water damage or mold growth
Attic, including insulation, ventilation, and any potential hazards such as exposed electrical wiring or structural damage
Heating, ventilation, and air conditioning (HVAC) systems, including filters, ductwork, and units
Electrical system, including electrical panels, outlets, and switches
Plumbing system, including water supply lines, laundry hoses, drain lines, and fixtures
Note: This list is not exhaustive, and the inspector should take additional pictures as necessary to provide a complete assessment of the property.
Most homeowner surveys will need diagrams. We use APEX sketch software. Here are the basics on completing a quality diagram.
Note: New reps can use hand drawn diagrams for the first 30 days of onboarding
The Importance of Living Area Calculations
Insurance premiums for homes are in large part determined by the total living area of the home (or square footage). Of course, many other factors are included, but, a 2,000 square foot home will typically have a higher premium than a 1,000 square foot home. It is critical that we, as insurance inspectors, calculate the total living area accurately. The best way to do this is to follow the guidelines that are generally accepted by real estate and appraisal professionals. Let?s take a quick look at the guidelines real estate agents work under.
Total Living Area Criteria
Living area (sometimes referred to as “heated living area” or “heated square footage”) is space that is intended for human occupancy and is:
Heated by a conventional heating system or systems (forced air, radiant, solar, etc.) that are permanently installed in the dwelling – not a portable heater – which generates heat sufficient to make the space suitable for year-round occupancy.
Finished, with walls, floors and ceilings of materials generally accepted for interior construction (e.g., painted drywall/sheet rock or paneled walls, carpeted or hardwood flooring, etc.) and with a ceiling height of at least seven feet, except under beams, ducts, etc. where the height must be at least six feet four inches [Note: In rooms with sloped ceilings (e.g., finished attics, bonus rooms, etc.) you may also include as living area the portion of the room with a ceiling height of at least five feet if at least one-half of the finished area of the room has a ceiling height of at least seven feet.]; and
Directly accessible from other living area (through a door or by a heated hallway or stairway).
Determining whether an area is considered living area can sometimes be confusing. Finished rooms used for general living (living room, dining room, kitchen, den, bedrooms, etc.) are normally included in living area. For other areas in the dwelling, the determination may not be so easy. For example, the following areas are considered living area if they meet the criteria (i.e., heated, finished, directly accessible from living area):
Attic, We differentiate attics as finished and unfinished. The article from MSB in this section goes into detail on these situations. This is DIFFERENT than a half or story.
Basement (or Below-Grade), Do not include basements (finished or unfinished) in calculating TLA. Basements will be addressed separately in ANY valuation program for insurance purposes.
Bay Window, if it has a floor, a ceiling height of at least seven feet, and otherwise meets the criteria for living area.
Bonus Room (ie: Finished Room over Garage)
Breezeway (enclosed)
Dormers
Furnace (Mechanical) Room Also, in order to avoid excessive detail, if the furnace, water heater, etc. is located in a small closet in the living area, include it in living area even if it does not meet other living area criteria.
Hallways, if they are a functional part of the living area.
Laundry Room/Area.
Office
Stairs, if they meet the criteria and connect to living area. Include the stairway with the area from which it descends, not to exceed the area of the opening in the floor. If the opening for the stairway exceeds the length and width of the stairway, deduct the excess open space from the upper level area. Include as part of the lower level area the space beneath the stairway, regardless of its ceiling height.
Storage Room
Steps for Determining the Square Footage of a House:
Measure the exterior of the first story
If the second story (third, etc.) aren't the same footprint as the first floor, measure those sections from the exterior as needed
Remove spaces that don?t count as interior living space
Add it all up
Some Examples
A Simple House with a Garage
Garages are not considered to be interior living space, and are therefore not counted as part of the square footage of a house. In an inspection, garages are still measured, and are clearly marked as being garages, which indicates that they are not living space.
For this example, we will show how to calculate the square footage of a house that is a simple rectangle with the garage taking up part of the overall footprint within the rectangle.
The size of this house is 760 square feet.
We obtained this size by first determining the size of the entire footprint of the house (the rectangle) and then subtracting the size of the garage. The house section and the garage section are drawn separately to allow for Rapid Sketch to calculate the square footage individually:
25 ft x 40 ft = 1000 square feet
12 feet x 20 feet = 240 square feet (the size of the garage)
1000 square feet ? 240 square feet = 760 square feet
A Simple House with a Garage and an Addition
This next house looks a lot like the last one, except there is an addition on the back. This addition is 300 square feet (15 feet by 20 feet).
Our calculations for the size of this home are almost identical to how we calculated the size of the home in the last example. In this case, however, we added 300 square feet for the size of the addition. The addition is drawn as a separate section as well as it is of a different year built and we want to separate that from the main home. In most replacement cost programs, this will be considered a ?wing?.
25 ft x 40 ft = 1000 square feet (the largest rectangle)
12 feet x 20 feet = 240 square feet (the size of the garage)
1000 square feet ? 240 square feet = 760 square feet
15 feet x 20 feet = 300 square feet (the size of the addition)
760 square feet + 300 square feet = 1060 square feet.
This house has 1060 square feet of interior living space.
In reality, we wouldn't do the calculations manually. We would use our sketching software to draw the diagram of the house and the software would calculate the dimensions.
What is Included in the Square Footage of a House?
In addition to the spaces we all recognize are considered to be interior living space, some other spaces are also included:
enclosed patios that are heated and air-conditioned and are similar in workmanship (quality) as the original dwelling
finished attics must be conditioned and conforming to the original structure
below grade rooms only when typical for the market (e.g.: home on hillside)
What is NOT Included in the Square Footage of a House?
Other common spaces are not considered to be living space and are therefore not included when determining the square footage of a house (they are however, included on the diagram):
screened patios
garages
unfinished areas
2nd floor airspace (open space, above an entry, or a vaulted room)
stairways open area on 2nd floor (do not need on diagram)
basements
detached living space accounted for separately from living space
spaces that are accessed only by traversing non-living space, like an enclosed storage area of a garage
The key to being efficient in any endeavor is to know what is important. So as inspector, do you think you know what is important to an underwriter? That’s what you would need to know to be the most efficient insurance inspector that is possible. Let’s take a look.
How an Underwriter Makes a Decision
On a commercial report, there might be 300 data points touched on in the inspection report. Less than 30 of them are going to drive the underwriter’s decision making process about giving or denying coverage. We call them the Hot Button Hazards. In a home owners report, the same idea. 50 data points, 10 that are going to drive the decision. While these Hot Buttons are unique to each customer, there is not much variance from customer to customer on major hazards. Steps with no railing are going to be a Hot Button for everyone.
What makes for a Hot Button Hazard?
If a hazard generally leads to a loss, it is a candidate. If it often is a large loss, it will probably be a Hot Button Hazard. If the loss happens a lot and costs a lot, it is a HBB for sure. Losses can be either property or liability based. Property, of course, is something like a house burning down. Liability will always be people based, like Grandmother falling off the porch because there are no railings. Typically, field reps spot property hazards easier than liability hazards. Everyone sees peeling paint. Not everyone can see a potential death trap!
Cost of a Loss
Remember, a house burning down can cost the insurance company $150K. A slip, trip or fall can exceed $500k. What is the potential claim for a bad case of peeling paint? How about a claim for a fire caused by improperly installed solid fuel burner? What could be the cost for no locking gate on a pool?
What are the Top 20 hazards?
As we said, Hot Button Hazards are unique to each carrier. However, you can safely pick the top 10 or 20 that will be on everyone’s list. For example, let’s look at residential coverage:
Aggressive dog
FPE Electrical Panels
Fuses
Knob & Tube Wiring
Temporary Heaters
Lack of Steps
Decayed Steps
Student Housing
Trampoline
Vacant
Leaking Pipe
Diving Board
Unlocked/Unfenced Pool Entry
Roof Deteriorated/Needs Replacement
SFB in Garage or Mobile Home
SFB inadequate clearances
SFB only source of heat
Possible Mold
Water in Basement
And more....
How Hot Button Hazards Effect the Inspector?
Let’s keep it simple. A report that does not clearly address any Hot Button Hazard items which are present is going to be rejected. Hot Button Hazard items need additional pictures, specific narrative; typically they receive recommendations, and so on. Without that level of detail, the customer will have questions which are not resolved. Are Non-Hot Button items important…absolutely. Do you have to research the age of the hot water tank on the internet – No. Do you need you need photos from two angles of the peeling paint – No. Be efficient, focus on what the Underwriter is going to focus on…Hot Button Hazards.