Are your inspections timely?
Is it sufficient to complete an inspection on 4/2 and then complete the subsequent inspection on 5/25? Unfortunately, no. Even though the inspection was technically completed in both April and May, best practices are that they are completed during the same intervals each month or within insurer/investor guidelines.
Case Scenario: If an inspection is completed 4/2, a first time vacant (FTV) occurs on 4/3, and roof damage occurs on 4/15, and the subsequent inspection does not occur until 5/25, the property becomes unnecessarily exposed to additional damage because the subsequent inspection occurs more than 45 days from the previous inspection. Conversely, if the subsequent inspection was completed on or near 5/2, the servicer may be able to prevent/mitigate damage by performing an initial secure and making repairs in accordance with insurer/investor guidelines, thereby reducing overall preservation costs.
When inspection completion dates are analyzed, they run parallel with damage costs. The wider the inspection gap, the costlier the repair. What are your inspection completion cycles? Do they follow insurer/investor guidelines? Are they monitored? For best practices, call AIM Your Way. 800-776-1815
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