You know what they say, an ounce of prevention is worth a pound of cure. For the property managers, HOAs, and building owners that we work with, prevention can also mean the difference between hundreds of thousands of dollars in a fair claim settlement. A Pre-Loss Building Inspection is a proactive approach to risk management and can make a world of difference in the event of an insurance claim. 

Our Public Adjusters at Cordo Claims Group have extensive experience working numerous multi-million-dollar large loss commercial property damage claims each year throughout Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas, Virginia, West Virginia and Colorado. That’s a whole lot of claims! One of the biggest issues we see in insurance disputes is carrier denial due to lack of maintenance, wear and tear, and improper installation. This can often be avoided.

What Is A Pre-Loss Inspection?

A Pre-Loss Inspection should be performed annually and provides a comprehensive assessment of the exterior components of a building. This helps to ensure that any problematic areas are identified and addressed before they can become major problems. The inspection plays a major role in risk mitigation and assesses the safety, structural integrity, and energy efficiency of your property. It also provides valuable knowledge that can help mitigate costly damage and repairs in the future.

All exterior components are carefully inspected including the foundation, roofing systems, exterior wall systems, air barriers, windows, and doors. The inspection pinpoints any areas of poor maintenance, material degradation, improper install or inadequate design. One underperforming component can lead to a complete system failure and increased vulnerability to extreme damage. 

Benefits of Pre-Loss Inspections

1. Claim Documentation

Should you have property damage down the road, having documentation from a Pre-Loss Inspection is invaluable and can mean the difference between a denied or accurately funded claim. The Pre-Loss Inspection provides a baseline assessment of the building’s condition before the incident, helping to streamline the claims process and avoid disputes with insurance providers. This inspection provides high-resolution photos, thermal imaging, moisture maps, and 4K/HD/3D aerial drone photography and video. 

2. Risk Identification & Mitigation, Knowledge Is Power

A Pre-Loss Inspection identifies any potential hazards or risks on the property. By identifying and catching problems early, you can take corrective measures and avoid costly issues later. You can’t fix it if you don’t know it’s broken. 

3. Insurance Assessment

Insurance companies often require thorough assessments of commercial properties before providing coverage. A Pre-Loss Inspection provides essential information for underwriters to evaluate the property’s risk profile accurately. 

4. Code Compliance

Building codes and regulations are regularly updated to enhance safety and security standards. A Pre-Loss Inspection helps ensure that the building is updated per the latest guidelines. Staying in compliance not only reduces the risk of accidents but also avoids potential legal and financial consequences associated with non-compliance.

5. Structural Longevity

A properly maintained structure will help prevent moisture intrusion which can lead to structural damage, mold growth, and other issues that can compromise the integrity of the building and its lifespan.

6. Safety First

In the event of an accident, your insurance company may require proof that you’ve taken steps to maintain a safe workplace. By identifying potential hazards and addressing them before they cause harm, you can mitigate accidents before they can happen. Routine maintenance can help prevent major safety hazards.

7. Cost Savings & Asset Protection

Workplace accidents can result in costly legal fees, medical bills, and lost productivity. By investing in regular inspections, you can minimize the risk of accidents and keep your business running smoothly. Pre-Loss Inspections help protect your property investment by identifying and addressing potential issues before they escalate into costly problems. Timely maintenance and repairs based on inspection findings can extend the lifespan of building components and systems, saving money in the long run.

8. Energy Efficiency

The Pre-Loss Inspection highlights areas where energy is being lost, whether through air leaks or inadequate insulation. This saves significantly on heating and cooling costs.

9. Real Estate Transactions

When buying or selling or even getting an appraisal, the Pre-Loss Inspection includes valuable information that will benefit both parties.

Photo Source: Hoffman Architects

Pre-Loss Building Inspection Checklist

1. Foundation: The foundation is inspected for signs of settling, cracking, and water damage. Includes analysis of the drainage system to ensure proper water flow and management.
2. Roofing: The roofing system, flashings, gutters, and downspouts are inspected for signs of wear and damage, such as missing or damaged shingles, cracks, and leaks.
3. Structural Integrity: The building’s structural components are inspected, including the roof, walls, windows, and doors, to ensure that they are functioning properly and safely.
4. Air and Water Infiltration: The building exterior is inspected for any air or water leaks. This includes analysis of insulation, weather-stripping and vapor barriers to identify any areas that may be allowing energy to escape.
5. Walls: The exterior walls are assessed for signs of damage or deterioration, such as water spots and water damage, cracks, fractures, missing or damaged mortar.
6. Windows and Doors: The windows and doors are inspected to ensure they are energy-efficient and secure.