Home Insurance Buyers: Get Ready for a Structural Audit

Posted on: May 11, 2022 | | Written by:

Home Insurance Buyers: Get Ready for a Structural Audit

Buying a home is a dream for many and when you spend your hard-earned money on it, all you want is the best. A few months back, when the 6th floor of a building crumpled, it left the owners but also prospective home buyers scared and confused. Getting checks by getting a structural audit is highly advisable before you buy property insurance. This is more relevant in case the house is old versus new construction. There are quite a few options when it comes to home inspection companies and they can help in all kinds of audits from content to material to structural defects. Old houses are more susceptible to damages and when it comes to buying property insurance, the insurer can refuse to insure the house or charge a high premium.

What is a Structural Audit?

A structural audit essentially is like a check-up for a building wherein a certified and qualified structural consultant or auditor will do a performance and health check-up. This is done to check for risks and if the premises and the building are safe to be used. After a thorough analysis, recommendations are made about repair and other measures which should be undertaken. This helps in the improvement of services of the building and it also reduces the risks of mishaps.

Why is a Structural Audit Needed?

Besides property insurance, there are other benefits of a structural audit. Some of these are:

● To save the building and human lives

● For understanding the condition of the building

● To ensure all statutory requirements are complied with

● To find areas where repair is needed urgently

● To ensure the life of the building is enhanced by suggesting corrective and preventive measureslike retrofitting and repairing

The sequence of the Audit

Usually, the following sequence is followed when getting a structural audit done:

● Building or apartment is checked from ground to top floor

● Terrace

● Top floor to the ground of the staircase

● Lobby, porch, stilts, the face of the building etc.

● The pump room and other ancillary structures

● Kitchen, living room and toilet

● Balconies and bedrooms

The Steps

By getting a structural audit done, all new home buyers can check the quality of construction of the building and clear their doubts about the structural strength. The companies that will do the structural audits have licensed consultants who will inspect for issues in doors, windows, electrical fittings, plumbing, walls, ceilings, etc.

In the first step, the consultants will visually inspect the property. If they find construction related issues or big cracks etc. they will call structural auditors to check the stability of the building’s structure. A series of tests will be conducted by these auditors to check the quality of the concrete and the steel reinforcement bars. For checking the quality of the concrete tests like rebound hammer, ultrasonic pulse velocity, cut and pull out etc. are carried out. Carbonation tests etc. are conducted for checking steel reinforcement.

Societies should comply with norms of the local authorities and of the national building code and as a homeowner, you must ensure that these are complied with by the societies. Fire safety and lift safety also needs to be checked and for this, the society should get the checks and audits.

The claim will not be payable under the property insurance when a building crumples down like it recently did in Gurugram. If the building collapses due to a storm, fire, cyclone, lighting, impact damage, landslide, the act of terrorism, riot etc. the coverage will be there in the insurance policy. As collapse due to wear and tear is not covered under the policy, a structural audit is thus, recommended before you buy a home insurance policy.

Buying Home Insurance

As home buyers, adequate insurance is needed for the contents of the building and for the structure. The cost of replacement is covered under a policy wherein the insurance company will pay the amount or offer coverage for the amount that will be needed to rebuild or replace the damaged part. The cost of construction per unit is multiplied by the carpet area to calculate the sum insured of the house. The cost of construction varies from one place to the other as it depends on several factors. The claims of these are always paid after the reinstatement is done. In a general property insurance policy, under the category of the general content, valuable items like art pieces, paintings and jewellery are not covered and a serrate cover has to be bought for them. There is a category of insuring valuable content and these items have to be insured under that. When buying home insurance all the above points have to be taken care of. A structural audit will help determine the risk and choose the sum insured and the decision to buy a property. The cost of construction for each location is different and thus, that has to be ascertained carefully. Apart from the above, one has to carefully take care of all aspects before buying a home insurance policy. Different companies offer different rates and also the coverage varies with the premium. Thus, the best thing to do is to read the terms and conditions and compare the policies to get the best. Due diligence of the building and also of the policy is needed to get the best property insurance for the building and reduce the risk.

Mistakes to Avoid

While buying a home or property insurance, there are some mistakes which should be avoided. Some of these are:

● Only focusing on the price and not the coverage. In an insurance policy, the coverage should always be more important than the premium. This ends up being costlier in the long run

● Never under insure the house. This becomes an issue in the case of a mishap and then you will need to spend money from your pocket

● Have clarity on different kinds of covers and ensure you choose the right ones carefully

● Every time you renew the policy, check if things are changed or if some contents have to be added or removed

● Always ensure you know the coverage, clauses and exclusions of the policy so that there is no ambiguity

Conclusion

By getting a structural audit for your building and then avoiding the above mistakes, one can ensure they get good coverage in their property insurance policy. Audits not only reduce the risk but also ensure that you buy a good policy and you are covered without any stress later. Home is after all our safe place, and it is our duty to keep it safe always.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

All You Need to Know About Home Insurance Inspection

Can You Get Home Insurance After Failing the Inspection?

Conduct Inspection on these Structural Faults to Avoid Bad Purchase or Renting