Homeowners' Insurance Inspections - The Real Deal

[hausdok]

As the cost of homeowners insurance goes up, insurers are looking for ways to minimize their own losses. One way they've begun to do this is by conducting their own inspections of policyholders' properties. Might this be an additional revenue source for home inspectors?

To read more click here.

[Mark P]

I do 2 -3 insurance inspections a month for a local company when a customer renews their coverage. It is not an inspection as a HI would think of it – it is really just an independent verification of what the company has on file. They have there own 3 page form to fill out. What percentage of the floors are carpeted, tile, etc? What percentage of the walls are 8’ 9’ 10’? Is the electrical system breakers or fuses and what is the amperage? Really basic stuff. I spend 15 – 20 minutes at an average size house – take a few pictures. Spend another 15+ min filling out the form and I charge $50. The home owner usually is the one that pays me because they receive a % discount on their policy over the next 3 years. On big houses they will save several hundreds of $ a year. Also the insurance agent only sends me to houses she knows are in good condition.

This lead to a large insurance company wanting to hire me to perform very very limited inspections on homes upon initial coverage. It would have been hundreds of houses a week at around $15 a house. I turned it down.

[kurt]

Interesting experience. Same as mine. Insurance inspections seem like such a natural and intelligent thing, but I've never had them work out.

Insurance people are a couple notches up from realtor's, but only a couple.

[Phillip]

I did an inspection on an horse stable for an insurance company.

Had to fill out their form, take pictures and measure the sq. footage of the building and how for away from each other.

It paid $150.

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[Bob White]

Wierd ---

A couple of hours after reading this topic, I was contacted by an appraisal company in FL to do a roof inspection for an insurer of a house here in Cartersville. My first insurance inspectiion.

Seems their aerial photos of the house in question show a possible hole in the roof and the want someone to go over and check it out - see if it's really a hole, a vent boot, or just a shadow.

A quick and easy $99 (my single system inspection fee).

[tbird]

Originally posted by AHIS

I do 2 -3 insurance inspections a month for a local company when a customer renews their coverage. It is not an inspection as a HI would think of it – it is really just an independent verification of what the company has on file. They have there own 3 page form to fill out. What percentage of the floors are carpeted, tile, etc? What percentage of the walls are 8’ 9’ 10’? Is the electrical system breakers or fuses and what is the amperage? Really basic stuff. I spend 15 – 20 minutes at an average size house – take a few pictures. Spend another 15+ min filling out the form and I charge $50. The home owner usually is the one that pays me because they receive a % discount on their policy over the next 3 years. On big houses they will save several hundreds of $ a year. Also the insurance agent only sends me to houses she knows are in good condition.

This lead to a large insurance company wanting to hire me to perform very very limited inspections on homes upon initial coverage. It would have been hundreds of houses a week at around $15 a house. I turned it down.

15 minutes for the inspection, 15 minutes for the report, 15 minutes for the trip there and 15 minutes back. 1 hour for $50? Not including vehicle fuel and wear and tear. It wouldn't be enough.

[Mark P]

Originally posted by tbird

Originally posted by AHIS

I do 2 -3 insurance inspections a month for a local company when a customer renews their coverage. It is not an inspection as a HI would think of it – it is really just an independent verification of what the company has on file. They have there own 3 page form to fill out. What percentage of the floors are carpeted, tile, etc? What percentage of the walls are 8’ 9’ 10’? Is the electrical system breakers or fuses and what is the amperage? Really basic stuff. I spend 15 – 20 minutes at an average size house – take a few pictures. Spend another 15+ min filling out the form and I charge $50. The home owner usually is the one that pays me because they receive a % discount on their policy over the next 3 years. On big houses they will save several hundreds of $ a year. Also the insurance agent only sends me to houses she knows are in good condition.

This lead to a large insurance company wanting to hire me to perform very very limited inspections on homes upon initial coverage. It would have been hundreds of houses a week at around $15 a house. I turned it down.

15 minutes for the inspection, 15 minutes for the report, 15 minutes for the trip there and 15 minutes back. 1 hour for $50? Not including vehicle fuel and wear and tear. It wouldn't be enough.

It would not be enough for what Carl? It added up to over $1400 last year which is enough for a lot of things. If I were to charge more the home owner would not be saving any money on their policy so there would be no point in me doing the insepection. Besides I usually have 2 -3 weeks in which I can schedule the appoitment so it helps fill in the slow days.

[kurt]

I'd do them for sure if they came my way. The one's I've done have always been easy money if I could work it into the schedule. It's just always been a sketchy thing for me.

There's been a few times when their contract stated flat out that I was taking responsibility for everything; a blatant dodge. I didn't do those.

None of the companies I worked for wanted an SOP inspection and all the stuff that entails. They justed wanted the basic take on the property. Insurance companies like picture reports. If you can give them picture reports in short order, you can make money.

[sepefrio]

Who at an insurance company would you contact to do these types of inspections? I've asked a few agents and they know they have inspectors, but no clue who hires them or anything like that?

[randynavarro]

I don't think its a straight time for dollar equation, especially in this market.

As Scott P. has shared, his total billings for one particular year were something like 14k. for this type of fill-in work. That's not chump change.

I'd rather have 14k than zero.

I personally need to get out of the mindset of the "usual" income paradigm that I've been enslaved to in this business.

[kurt]

Originally posted by sepefrio

Who at an insurance company would you contact to do these types of inspections? I've asked a few agents and they know they have inspectors, but no clue who hires them or anything like that?

My experience is it's an obscure path. I called around years ago, and had mixed successes and disenchantments keeping it going.

On several levels, meaningful inspections are detrimental to the insurance business, as in, good inspections can make properties un-writable. Agents think it's a good idea at first, then they lose interest, and sort of fade away.

Or not. If you can hook up w/an insurance company that wants information and not fluff, and they'll pay for it, it's easy money.

[Scottpat]

Originally posted by randynavarro

I don't think its a straight time for dollar equation, especially in this market.

As Scott P. has shared, his total billings for one particular year were something like 14k. for this type of fill-in work. That's not chump change.

I'd rather have 14k than zero.

I personally need to get out of the mindset of the "usual" income paradigm that I've been enslaved to in this business.

Yep, it more than pays for gas, insurance, a few RC Cola's and Moonpies!

When I moved, I took and I still take whatever I think will work and turn a profit. Granted some jobs are more profitable, but I also pick up a penny on the street when I see one as it all adds up.

[tbird]

Originally posted by AHIS

Originally posted by tbird

Originally posted by AHIS

I do 2 -3 insurance inspections a month for a local company when a customer renews their coverage. It is not an inspection as a HI would think of it – it is really just an independent verification of what the company has on file. They have there own 3 page form to fill out. What percentage of the floors are carpeted, tile, etc? What percentage of the walls are 8’ 9’ 10’? Is the electrical system breakers or fuses and what is the amperage? Really basic stuff. I spend 15 – 20 minutes at an average size house – take a few pictures. Spend another 15+ min filling out the form and I charge $50. The home owner usually is the one that pays me because they receive a % discount on their policy over the next 3 years. On big houses they will save several hundreds of $ a year. Also the insurance agent only sends me to houses she knows are in good condition.

This lead to a large insurance company wanting to hire me to perform very very limited inspections on homes upon initial coverage. It would have been hundreds of houses a week at around $15 a house. I turned it down.

15 minutes for the inspection, 15 minutes for the report, 15 minutes for the trip there and 15 minutes back. 1 hour for $50? Not including vehicle fuel and wear and tear. It wouldn't be enough.

It would not be enough for what Carl? It added up to over $1400 last year which is enough for a lot of things. If I were to charge more the home owner would not be saving any money on their policy so there would be no point in me doing the insepection. Besides I usually have 2 -3 weeks in which I can schedule the appoitment so it helps fill in the slow days.

I can see using it for filler material, but not in place of my real focus, home inspections. The reason I have not branched out into other types of work is because the more diversified you get, the less of an expert you are. Consider this: It takes at least $75 for a HVAC tech, plumber, or electrician to even show up to your door. That is why I thought $50 is too low. Of course, it depends on what part of the country you are in.

I'm not going into business economics, but everybody's base hourly rates are different than others (just call around). For me, I would rather not do the job than sell myself short.