A comprehensive inspection program is an effective way to improve upon any weak points your property may have.
In addition to helping determine accurate property values, inspections can help to prevent losses before they occur. It is a common misconception that insurance company inspections are done for the purpose of costing the insured more money. While valuation is an important part of the inspection process, there are many other reasons why inspections are an essential practice of any successful insurance company. Basic information obtained in an inspection is essential to determining appropriate insurance coverage. The inspections allow a trained professional to evaluate the areas of potential loss and develop a plan to minimize the likelihood of having a claim.
The inevitable result to an inspection is a list of recommendations given to the owner from the insurance company. Recommendations are suggestions to a business or organization to take specific actions, issued with the intention of future accident prevention. There are a few different types of recommendations. When they are analyzed and a clear break down is provided, they are pretty simple to understand.
When taking a deeper look at the recommendations with a claim prevention outlook, they are pretty simple to understand. Following is a breakdown of the common categories recommendations are divided into.
Critical or Mandatory Recommendations relate to conditions or practices creating a high potential for loss of life, severe bodily injury, destructive loss of property or significant financial loss. In most cases, the insurance company will understandably require that these recommendations be addressed or the policy may be cancelled. This is to avoid potential financial losses.
Important Recommendations relate to conditions or practices that require improvement to reduce the probability and severity of a loss. These are concerns that must be corrected, to avoid unnecessary grief for yourself and others.
Advisory Recommendations are administrative – type recommendations that could be considered great practices to incorporate into your home or business. Although they aren’t required in order to keep your insurance coverage, implementing these practices will provide further protection against potential claims.
Granted, these recommendations can often be quite costly and difficult to implement, an insurance company makes such suggestions only to improve and/or correct the condition of your property. Although it may be tempting not to comply, it just doesn’t pay in the long run as claims are a big nuisance and are extremely time consuming. Complying will definitely insure that you are on the Safeside!