Living on the coast comes with a unique set of ups and downs. On the one hand, you have unbelievable views and quick access to any water-based activity that you can imagine. However, on the other hand, those vista views and all the hydro-centric fun comes at a price, the costliest being the threat and often inevitability of a natural catastrophe damaging or even destroying your property.

To figure out what vulnerabilities your property has and how much coverage you’ll need, your insurance company will require a risk assessment.

During this process, a non-biased, 3rd-party, certified evaluation company (Like Disaster Smart) will be contracted by the policy underwriter to identify, assess, and mitigate the risks to the property, helping both you and the insurance company make an informed decision about how best to protect your assets.



The History of Risk Assessments:

The history of property risk assessment dates back to the ancient world. In Babylonia, for example, property owners were required to pay taxes based on the value of their property. This system of taxation required that property owners have a way to assess the value of their property, which led to the development of early forms of property risk assessment.

Read more about this history of insurance at Britannica, here.

Over time, property risk assessment has become more sophisticated. In the 20th century, insurance companies began to use statistical methods to assess the risk of a variety of other hazards, such as theft, flood, and earthquake.


The Now:

Today, risk assessment is a complex and sophisticated process. It involves a variety of factors, including the physical condition of the property, the surrounding environment, and the potential for natural disasters. The evaluation is also used to assess the risks associated with specific activities, such as construction or manufacturing.

These processes have now allowed insurers to price their policies even more accurately and to provide better coverage for their customers like you.

With the rapid advancement of technology, the future of what a risk evaluation will be and is, will also inevitably evolve.


Where We’re Headed:

Everywhere we look today, we can see new technology re-configuring the way we live, play, and work, and the insurance industry will be no exception.

We are seeing the risk evaluation process is constantly evolving as new technologies and trends emerge. Some of the key trends that are shaping the future of property risk evaluations:



Insurance and risk assessments have been around for as long as anyone can remember and as technology evolves, so will the way potential hazards to your property are evaluated. It’s important to remember that the risk inspection that insurance companies order for your property is an essential part of its management. By understanding the hazards associated with your home, owners, and managers alike, can take steps to protect assets and to reduce their risk of financial losses.

For more in-depth information regarding when and why you could receive an property risk inspection, please read our article What to Expect When you Insurance Company Orders an Inspection. Should you have any questions regarding the evaluation process, please contact your insurance agent or reach out to us at 888-964-8776 extension 0.