Knowing The Risks Before You Build

Every construction project entails a certain degree of danger, and it’s important to know the risks before starting. There is always a possibility of something going wrong when breaking ground on a new structure. It is precisely why builders’ risk exists‒to have financial protection against any eventuality that could endanger the project. Additionally, it helps protect the owners’ assets or the entire company.

Knowing The Risks

But the existence of insurance coverage doesn’t mean throwing all caution to the wind. Despite being protected from builder’s risk, builders, project managers, and property owners should still do everything to prevent risks. And failing that, they should at least have some plan to mitigate the consequences of these risks. It is where surveyors come in.

Surveyors play a crucial role in major construction projects. Their skills, knowledge, and experience enable them to know the risks and develop solutions that prevent them from occurring. With the help of a good surveyor, your clients can plan for contingencies and minimize the possibility of costly losses or damage. 

Here are some scenarios wherein having a surveyor can be advantageous:

Property Sales

Property sellers have to provide prospective buyers with an up-to-date property survey. It serves the following purposes:

  1. Give the buyer confidence in the planned purchase
  2. Specify the property’s size and coverage for the buyer
  3. Deliver a complete and accurate description of the property to avoid a future dispute

Property Purchases

Prospective property buyers may also request a survey to determine whether other parties can use the property for utilities or traffic access, the location of later additions, and possible disputes with owners of adjacent properties.

When Adding to a Home

Even making an addition to a home may necessitate having a survey done. It may be the case whether the addition is a room, an entire wing or level, or even just a fence.

Completing a survey guarantees protection, ensuring the work gets done on the owner’s property. Neglecting to commission a study may result in costly fees and legal consequences if the addition spills over into an adjacent property. 

Land surveyors usually determine how far the property extends or where the boundaries are. In such cases, surveyors often work with the property owners, the contractor, and representatives from the municipality. Doing this prevents a lawsuit and ensures a mutual agreement on all fronts.

When Subdividing Property

Land surveyors will go to a survey property that scheduled for subdividing. The surveyor will examine the property title, planning restrictions, and other potential planning conflicts in these cases. It helps them know the risks and understand the project.

Surveyors may also work with other consultants to perform preliminary studies. Next, they can assess existing engineering and environmental issues before preparing a subdivision map. Afterward, they will mark out where the property should be. Then, they determine the division among the property. 

When Refinancing or Remortgaging a Property

Most lending institutions require performing a current survey before approving a loan. It protects the lender’s investment by ensuring that the property in question matches the details in the title documents presented by the borrower.

When Applying for an Elevation Certificate

A crew will need to conduct a survey when applying for an elevation certificate. This document determines the flood risk of a particular piece of property before deciding the appropriate flood insurance premiums the policyholder should pay. By comparing the property’s elevation to the estimated height of the expected floodwaters, insurers can calculate the owner’s flood risk and how much flood insurance will cost. 

Cost of Hiring a Surveyor

Surveyors typically charge $500 or a bit higher. The survey itself will cost an additional $200 to $1,000, depending on the size of the property, location, etc. Because of the many different considerations, the actual cost is usually determined individually per survey. Most surveyors will ask to assess the property and then provide a quote covering all costs.

Clients can ask surveyors for a cost estimate, what the survey entails, and the expected completion date. Then, clients and surveyors should execute a written contract before the survey begins.

Client Protection

In most jurisdictions, the law requires surveyors to act in the interests of the consumers. Most states allow only licensed land surveyors to perform boundary surveys. 

Surveyors are also there to resolve questions or clarify misunderstandings when property disputes occur. If the conflict leads to court proceedings, licensed land surveyors may act as expert witnesses.

About Snyder Specialty

Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.