Learn how insurance loss inspections document completed repairs, partial repairs, and repair progress for mortgage companies.
An insurance loss inspection is ordered after a homeowner reports property damage to their insurance company and an insurance claim has been opened.
Because the mortgage company has a financial interest in the property, the insurance repair check will usually include the mortgage company’s name. Before funds are released, the mortgage company will require inspection photos showing completed repairs, partial repairs, or repair progress.
After the insurance company issues the repair check, the homeowner usually has to send the check to the mortgage company for endorsement or controlled release of funds.
The mortgage company will send an inspector to the property to document completed repairs, partial repairs, or repair progress. These inspections are appointment-based, so the inspector must contact the homeowner and schedule access to the property.
Once the inspection is completed, the report is sent back to the client. If the mortgage company is satisfied that the repairs have been completed properly, funds can be released so the homeowner can pay the contractor.
Insurance loss inspectors document the visible repair status at the property.
The inspector should report what is visible, take clear photos, follow the work order, and avoid guessing about repair quality, cost, coverage, or causes of damage unless the client specifically requests visible indicators.
Insurance loss photos show the client the repair status at the property.
Clear photos help support whether repairs appear completed, partially completed, still in progress, or not yet started.
Insurance loss inspections are appointment-based. The inspector must contact the homeowner or contact person to schedule access before completing the inspection.
Always read the work order, scope of work, or insurance adjuster report before the appointment. These inspections commonly require the inspector to report the visible percentage of repairs completed, such as 50%, 75%, 90%, or 100%.
The inspector should photograph the repair areas and items listed in the order. This may include specific rooms, damages, exterior areas, detached structures, fences, barns, sheds, gazebos, or other listed items.
Photos should show both completed repairs and incomplete or uncompleted repair items listed in the scope of work. If an item has not been repaired, photograph the area clearly and report the visible status.
Do not treat an insurance loss inspection like a full interior inspection unless the client specifically requires it. Photograph and report the areas and items requested by the client.
Insurance loss inspections are usually ordered when repairs need to be verified before funds are released.
Common situations include roof repairs, water damage repairs, fire or smoke damage repairs, storm damage repairs, structural repairs, shed or fence repairs, and large projects where the contractor may need progress inspections before the work is fully complete.
The next lesson will focus on disaster inspections, which are usually ordered after storms, hurricanes, tornadoes, floods, fires, or other major events.
You will learn how disaster inspections differ from insurance loss inspections and why they are usually quick exterior checks used to document visible property condition after an event.