You just received a call from someone at your insurance company asking if they could make an appointment for an inspection. You might be asking: What is an inspection, and what am I supposed to do?
An inspection is also known as: Loss Control Survey, Loss Prevention, Accident Prevention, and Risk Management. An inspection is an individual assessment of your association’s property to evaluate possible hazards such as fires, water leaks, trip and fall, or any other catastrophes that may negatively affect your association property or harm your association members and guests. The cost associated with your inspection and the preparation of your Loss Control Recommendation Report are included in your premiums.
The primary purpose of an inspection is to confirm that your insurance company’s underwriters have correctly classified your association for the purpose of assessing its risk.
The secondary purpose of an inspection is to help your association minimize future losses by identifying them, evaluating them, and recommending the best methods to correct them and avoid them.
Insurance is a partnership between the policyholder and the insurance company. Controlling losses is the most effective way to contain insurance costs, and an inspection is all about helping you control losses — and, ideally, saving you time and money.
The implementation of your association’s recommendations can provide many benefits:
Fewer Accidents
By repairing cracked sidewalks and parking lots you can avoid most of the trip and fall accidents they cause.
Slips, trips, and falls can result in back injuries, strains, sprains, contusions, and fractures. Furthermore, falling from even a short distance can have fatal consequences. The good news is that many of these accidents can be avoided. Here are some tips to help you prevent slips, trips, and falls:
Provide good lighting for all halls, stairwells, ramps — especially during night hours.
Make sure stairs have proper handrails, that treads and risers are maintained, and that treads have a slip-resistant surface.
Reduced Injuries and Deaths
By posting warning signs you can alert members and guests to potentially dangerous situations and reduce the number of injuries and deaths.
Greater compliance with mandated regulations
An insurance inspector is trained to make sure you are complying with regulations. A common example of this is notifying associations that some of the members have grills to close to the building.
Lower Insurance Premiums
The reduction in claims will help keep your insurance premiums lower.
A qualified Inspector or Loss Control Consultant that works for either your insurance company or an independent inspection company hired by your insurance company will perform your inspection and prepare a Loss Control Recommendation Report for both your underwriter and you.
A qualified Inspector or Loss Control Consultant provides the following services:
Building construction/defects
Elevators
Fire Extinguishers
HVAC Systems
National Fire Protection Association
Roof Age/Condition
Security Measures
Security System
Sprinkler Systems
Here are few items taken from the “Habitational Program Eligibility Guidelines” for a national insurance company that the inspector will also be considering:
Property
Roofs
Buildings 4 stories or higher
Liability
Life Safety Requirements
Swimming Pools, Spas or Hot Tubs
Risks with swimming pools must meet all federal, state, and local regulations with depths clearly marked and should be available only to residents and their guests if accompanied by the resident.
Exercise Facilities
Risks with exercise facilities must have rules posted on the use of the exercise room and equipment, lockable room access for tenants only, inspection and maintenance of equipment on a regular basis and documented accordingly. No free weights permitted.
Recreational Facilities
Recreational facilities such as tennis or basketball courts should only be open to residents and their guests. A resident must accompany guests.
Playground Equipment
Playground equipment must be properly maintained and inspected on a regular schedule with records kept of all inspections and repairs.
To best prepare for this visit, you should collect any written policies and procedures that are part of your association’s risk control efforts. These items might include copies of; annual elevator inspections/agreement, annual fire alarm system inspection report, annual fire extinguisher servicing receipt, annual fire pump inspection report, annual sprinkler systems & backflow report, and maintenance schedules.
Another important step is to make sure the right people are available to answer questions. The Inspector can get more details from someone who is closely related to the issue. Your Property Manager or On-Site Maintenance Manager might handle the property questions/tour. Make sure that the additional contacts understand the value of the Loss Control inspection and the importance of the information being provided.
Remember to provide enough time in your schedule for the full inspection. Ask the inspector how much time will be needed to cover the questions that will need to be asked and adequately tour your property. Having the right people and information available will greatly decrease the amount of time needed. If there are any questions that you are unable to answer during the inspection, be sure to find the answers after the inspection and relay the information as quickly as possible. This will help speed up the overall process.
Meeting
Your Property Manager, On-Site Maintenance Manager, or Board Member will meet with your inspector to discuss any of the following: the history and construction of your buildings, safety programs, maintenance procedures and schedules.
In addition, your Property Manager, On-Site Maintenance Manager, or Board Member will provide the inspector with any written policies and procedures that are part of your association’s risk control and maintenance efforts. These items might include copies of; annual elevator inspections/agreement, annual fire alarm system inspection report, annual fire extinguisher servicing receipt, annual fire pump inspection report, annual sprinkler systems & backflow report, and maintenance schedules.
Tour of your Property
Your Property Manager, On-Site Maintenance Manager, or Board Member and your inspector will conduct a physical survey of your property. You may look at the building’s materials and construction, as well as details such as your fire control system, and more. The inspector will take photos and measurements to document anything they notice.
In addition to inspecting your buildings, the inspector will also check for hazards outside the building, including the general condition of the exterior, as well as non-habitational buildings, swimming pools, sports courts, playgrounds, hydrants, sidewalks, fencing, entrance gates, retaining walls, parking lots, and any other association property.
Your Inspector will recap in writing the results of their inspection and their recommendations in their “Loss Control Survey Results & Recommendations” letter. Your specific recommendations are meant to help your association reduce future losses by counteracting issues discovered during the inspection of your property.
These recommendations are broken up into three categories:
Essential Recommendations
Failure to comply with these recommendations by a set Due Date will result in the cancellation of your policy.
Required Recommendations
Failure to comply with these recommendations before your next renewal will result in the non-renewal of your policy.
Risk Improvement Recommendations
These recommendations are not required.
Your insurance company will expect a signed written response from you within 14 to 30 days. Your response should include your plan of action with estimated completion dates.
Your insurance company will let you know if your plan of action and estimated completion dates are acceptable or may extend the time you have to complete your work.
Once your insurance company has accepted your plan of action, they will require proof of compliance when work is complete. Your proof should include the following: Photos of completed work, and copies of paid receipts for the completed work.
Example Pictures - Proof of Completion
Clean Roof with debris removed
Fire Extinguisher with new Service Tag
Gym Rules Sign
New Fire Extinguisher & Receipt
New Handrail
New High Pressure Laundry Hoses
New Security Keypad
Sprinkler System Placard with Verification
Once proof has been received and accepted your insurance company will send you a rescission letter.
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