A 4 – Point Inspection is not the same as a General Home Inspection. A 4 – Point Inspection consists of a review of the home’s electrical, HVAC, plumbing, and roofing systems. A General Home Inspection is where the inspector will do a comprehensive review of the entire home.
Do Insurance Companies Require Home Inspections?
It is very common for insurance companies to require a 4-point inspection upon purchasing a home or when renewing a policy on an older home (between 30-40 years). This is why some people in the industry refer to them as “home insurance inspections.”
The information in the inspection report will help your insurance carrier make estimates of your likelihood of filing a claim in the future. They will then use this information to calculate your premium amount or even decide whether to offer you coverage.
Can I Get Homeowners Insurance Without an Inspection?
The age of your home, your claim history, the type of policy you’re purchasing, and even your choice of insurance company will all affect whether a 4-point inspection is required.
For example, if you are purchasing a new construction home that conforms to current building codes, an inspection may not be necessary. However, if your home (or the home you are looking to purchase) is older than 15 years, there’s a good chance that you will need a 4-point inspection.
Keep in mind that 4-point inspections and full inspections are not interchangeable. A 4-point inspection may be enough for your insurance company, but it is not enough information to tell you whether a certain home is worth buying.
Similarly, you should not submit the results of a full inspection in lieu of a 4-point inspection.
What Happens If I Fail the Inspection?
Your home inspector is only responsible for determining the current condition of the home, not whether it “passed” or “failed.” However, your insurance company can decide whether to issue a policy based on the information in the report.
In some cases, the insurance company may offer coverage only after certain repairs or improvements are made to the property. Alternatively, they may adjust the policy, such as a higher premium amount or lower coverage limits.
Finally, they may make the decision to deny you coverage. If this is the case, speak to your independent insurance agent about finding replacement coverage with another carrier. Because independent agents are not tied to a particular insurance company, they are free to search the market for coverages that match your needs.