The Inspection Risk No One Talks About: When E&O Begins at Renewal

In the world of property and casualty insurance, Errors and Omissions (E&O) claims are a silent but growing threat. They cost time, money, and trust, especially when the exposure stems from something as routine as a policy renewal.

While agents and carriers often associate E&O risk with quoting or policy servicing mistakes, one of the most overlooked sources of exposure comes during the renewal process. As properties change over time, failure to properly reassess risk can lead to insufficient coverage, denied claims, and costly litigation. 

So, what if your next E&O claim is already lurking inside a renewal file?

The Risk Lurking in Renewals

Renewals are often processed quickly to maintain operational efficiency—but that speed can come at the expense of risk accuracy. Over time, properties change. Homeowners may renovate, add features like swimming pools or outbuildings, or experience gradual wear and tear to major components like roofing or plumbing. When these updates go unreported—and undetected—they can result in an outdated risk profile and a policy that no longer reflects the home’s current condition.

This is where E&O risk escalates. If a claim is denied due to non-disclosure of a material change, the policyholder may point fingers at their agent or carrier. In many cases, it’s not a matter of malicious neglect, but of relying on outdated information. And courts won’t always side with the insurer.

Common Gaps That Lead to E&O Exposure

Chrp has analyzed thousands of homes and identified the most common discrepancies that contribute to E&O claims:

• Roof degradation or complete roof replacement not updated in the system
• Additions such as swimming pools, garages, sheds, or patios
• Outdated HVAC systems, water heaters, or electrical panels
• Changes in occupancy type or property use
• Unreported home-based businesses

Each of these factors can have a significant impact on underwriting, premiums, or eligibility. When a claim arises involving one of these features, and the policy doesn’t account for it, legal and financial exposure becomes very real.

Why Traditional Renewal Processes Aren’t Enough

Many insurers rely on self-reporting from policyholders, combined with occasional drive-by inspections or desktop reviews. These approaches may work for new policies, but they fall short when properties evolve and renewals become rubber-stamped. Even well-meaning agents can miss changes when they’re not actively verifying the property condition.

And with increasing pressure on underwriting teams to process more policies in less time, manual risk reviews are often bypassed altogether. This creates a perfect environment for E&O exposure to grow unchecked.

How Chrp Fills the Gap

Chrp offers a smarter, more scalable way to conduct renewal inspections. Here’s how it works: