Subject: Dealing with Unexpected Interior Insurance Inspections - Seeking Advice

Subject: Dealing with Unexpected Interior Insurance Inspections - Seeking Advice

Member since 2021 · 1 post · 0 votes

​I have an upcoming interior insurance inspection for my 9-unit building. I’ve been renovating the units as they turn over and have completed six of the nine so far over the past two years since I’ve owned the building. However, the remaining three units are still original and in poor condition, and I'm concerned about them being flagged as a liability.

​Has anyone dealt with interior insurance inspections when some units are significantly outdated compared to others?

​Does it help to provide a list of improvements made to the six units already completed to show the property is being improved?

​How likely is it that the condition of the remaining three units will trigger a non-renewal, a premium hike, or a laundry list of required "to-do" repairs?

​Are there specific "must-haves" for these older units to pass an inspection (e.g., GFCI outlets, working smoke detectors, no active leaks)?

​Any advice on how to handle the inspection or manage the inspector's expectations would be appreciated.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    4mo

    First, relax. From what you have posted, it sounds like you are a good steward of the property.  

    An inspection is pretty normal thing.  If they flag you for needing GFCIs or similar, none of that breaks the bank.  They will give you a list of things that need to be fixed.  You fix them.  Take pictures or show an invoice from a supplier that they are done.  All good.

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4mo
    Quote from @Karl Chic:

    ​I have an upcoming interior insurance inspection for my 9-unit building. I’ve been renovating the units as they turn over and have completed six of the nine so far over the past two years since I’ve owned the building. However, the remaining three units are still original and in poor condition, and I'm concerned about them being flagged as a liability.

    ​Has anyone dealt with interior insurance inspections when some units are significantly outdated compared to others?

    ​Does it help to provide a list of improvements made to the six units already completed to show the property is being improved?

    ​How likely is it that the condition of the remaining three units will trigger a non-renewal, a premium hike, or a laundry list of required "to-do" repairs?

    ​Are there specific "must-haves" for these older units to pass an inspection (e.g., GFCI outlets, working smoke detectors, no active leaks)?

    ​Any advice on how to handle the inspection or manage the inspector's expectations would be appreciated.


     First question is if they are rented, if they are rented or being rented then yes of course you need smoke detectors etc. - typically even if  not being rented you will need to make sure they are not being used for storage of flammable materials, must have operating smoke detectors and all in all not a hazard. We just went through one and there were very minor things noted on ours.

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