Insurance risk surveys: Buildings condition and safety compliance

Insurance companies reserve the right to conduct property inspections through site visits. These inspections will be scheduled in advance with the property owner, and in the case of a sectional title scheme or homeowners association, with the relevant trustee, agent, or building manager.

What is the purpose of an insurance risk survey?

The purpose of a risk survey inspection is to seek comfort that the buildings at risk are being maintained in an acceptable condition and that safety measures are being correctly taken and adhered to, regarding the prevention of loss and/or damage.

Risk survey inspections are often conducted, as a condition, before acceptance of cover and may also be requested at interim periods, where the insurer may require such comfort. These surveys are undertaken at the insurer’s expense, by trained (in-house) risk assessors and/or independent specialist assessment contractors when necessary.

We believe these surveys are highly useful in identifying any shortcomings or risks that could affect the safety and integrity of the building, helping to prevent or reduce potential future claims or losses.

Typical focus areas

The following areas are commonly reviewed for compliance and attention (though not limited to these):

• Fire protection apparatus (servicing requirements and whether adequate/sufficient)
• Common area stairwell safety (adequate handrail supports)
• General condition of the building structure (eg, any noticeable cracks and/or damp in walls)
• Dangers posed by any uneven paving brickwork in walkways
• Broken glass fixtures  
• Clearance of tree branches that may pose a danger to the building structure
• The need for suitable liability disclaimer notice boards, particularly around entrances to the property, visitor parking areas and communal swimming pool facilities
• Presence of any non-standard and more materially hazardous construction (eg, thatch roof coverings, asbestos exposure)
• General housekeeping to any storage rooms that may hold flammable liquid fuels, excessive fire hazard waste, etc.
• Electrical wiring condition (eg, any loose/exposed connections)

Summary

In summary, risk survey inspections are constructive tools that allow insurers and property owners to identify and address potential risks early, leading to safer buildings and a reduction in future claims.