 


and perform these inspections? Within your insurance policy’s conditions section is a condition typically called “Inspection and Surveys,” which gives the insurers the contractual right to inspect for exposures to potential claims and losses the insurance company may have to respond to. With the above a known fact, it is good to understand why underwriters request these inspections. I have tried to list these in what I believe is the order of importance:


 Identify hazards within the community association that could result in an exposure to loss. This may include uninsured exposures to loss as well as those that are insured.


 Verify compliance of recommendations made as a result of a previous risk management inspection.


Independent verification of information provided previously in applications, submissions, and previous reports.


Follow-up on a claim report, on an individual claim or loss, that creates some concern for the underwriter. Probably a loss severity concern.


A loss frequency problem / concern with the community association, or an emerging loss trend.


Looking for positive information to justify the acceptance (policy or quote) of the insured and/or the pricing of the premium.


Even though all insurance companies, and their inspectors, conduct these inspections in slightly different ways they all generally are accomplished in two parts, the site inspection and the interview.


38 SEPTEMBER | OCTOBER 202 5


The site inspection will be an actual walk-through of the association, in particular the common areas, and the taking of several photographs. This walk-through will try to address as much of the underwriter’s concerns noted above, but may also include the measuring of buildings, inspection of an individual unit, and possibly neighboring exposures.


The interview can be done in person, over the phone, or even via email correspondence, depending on what is acceptable to the insurance company. This interview will try to address as much of the underwriter’s concerns noted above as well as updating information that may have changed over time. These include but are not limited to;


Unit vacancies.


Unit-owners in arrears with assessments.


Special assessments.


Units rented on a long-term or short-term basis.


Changes in community management (manager and board).


Contractors used for landscaping, maintenance, snow & ice removal, pool management, fire extinguishing systems inspections, etc.


Physical upgrades to buildings or grounds (for example new roofs or re-paved parking lots).


 Incidents and losses (insured and un-insured).


In preparing for a risk management inspection the community association should attempt to have their representative that is working with the inspector be the individual with the most knowledge of the community association’s physical


premises as well as its operation. This could be the community manager, a board / committee member, or a combination of individuals. Whomever becomes the representative of the community association might want to prepare for the risk management inspection by doing any of the following:


Do your own walk-through of your association including buildings and common areas and create your own checklist of things to repair, improve, or replace. Special attention should be made when looking at recreational amenities like swimming pools and playgrounds.


Review most recent applications, inspections, incident reports and / or loss histories if they are available to you.


 Verify if there were any past recommendations made and if they were complied with. If they were not complied with, have the knowledge as to why this is the case.


Being prepared for this inspection should make things go smoothly, less time consuming, far less stressful, and much easier to accomplish.


Once the site inspection and interview are completed, the inspector will submit a written report documenting the inspector’s findings. This report will ultimately be reviewed by the underwriter. The underwriter then makes the decision to release, or not release, loss control recommendations. If recommendation(s) are made they are usually easy and 


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