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4 Point Insurance Inspections
What is a 4 point Inspection?
A 4 point insurance inspection is a specific inspection done at the request of an insurance company. When you buy an older home, a 4 point inspection may be required to get insurance on the property. If you already own an older home, you may hear about 4 point inspections for the first time when you receive a cancellation notice on your insurance.
After Hurricane Andrew in 1992, insurers were looking for a way to reduce their losses. This type of inspection has increased in popularity since the 2004, 2005 hurricane seasons. Since then, 4 point inspections may be required in homes 25 years or older depending on the guidelines set by individual insurance companies.
What are the 4 points?
A 4 point insurance inspection consists of the following:
· Roof Inspection
· Electrical Inspection
· HVAC (Heat, Ventilation & A/C)
· Plumbing
What are the Insurance Companies looking for?
While we cannot speak for the individual insurance companies, it appears they want to know if the major systems of the house have been updated and what the reasonable life expectancy will be. It is recommended that the buyer contact their insurance company for more information.
How do I know if I need this inspection?
Buyers should contact their insurance agents to find out if this inspection is required. The agent will need the address of the home and the year it was built. If the the 4 point inspection is not required, ask if discounts are available by having the inspection done anyway. Some companies have surcharges depending on the year the home was built. The agent will tell you if it possible to have the surcharge waived by proving the home has been upgraded.
You should also ask if your insurance company requires a specific form for the inspection. If so, have a blank copy of the required form to give to your inspector.
Can the home fail this inspection?
This is not a pass or fail situation. A 4 point inspection was designed to give the insurance company information needed for risk assessment. In many cases the insurance company will allow the owner time to make any necessary repairs or upgrades. Keep in mind that the upgrades the insurance companies are looking for will make the home safer for you and your family.
I have already had the home inspected, what if I decide not to get this inspection too?
A pre-purchase inspection and a 4 point inspection are not the same. The pre-purchase inspection is a comprehensive inspection that buyers have done to learn the true condition of the home. A 4 point inspection does not give the buyer the same information, it is done so the buyer can obtain insurance on the property.
If you choose not to get the inspection and your insurance company requires it, you may not be able to obtain insurance for the property. We have had clients who refused the 4 point inspection and obtained insurance but received cancellation notices from their insurance company after closing on the house.
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Order your Inspection Now!
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