In many cases, home inspections are up to the buyers but in some cases, your insurance company may require you to conduct an Orlando home inspection. Often, that inspection will be a 4 point home inspection. Home insurance companies often require a 4 point home inspection because it will reveal potential repair costs or issues, many of which you will need the home insurance’s help to pay off.
About the 4 Point Inspection
A 4 point home inspection is essentially a home inspection which covers the four foundational home systems. These are your roof, plumbing, electrical and HVAC (or simply, your structure, water, electricity and ventilation/home temperature control).
The reason the 4 point inspection is so common amongst home insurance companies is because the majority of massive home expenses a home insurance company will have to pay off come from these four home systems.
While inspecting your home, the inspector will pay special attention to damaged shingles, water leaks, faulty wiring and pipe issues, which are extremely common issues in older houses.
If you are purchasing a newer, or a recently upgraded home, your inspector will likely only find a few small issues. However, with houses that are 30 years or older and have not gone through recent renovations, it is possible for the house to fail the home inspection. In this case, you may be declined for home insurance.
Declined by Home Insurance Companies
Sometimes, a home inspector may spot serious problems that could lead the house to be declined by a home insurance company. This could include a damaged roof or old roofing such as a 19 year old or older shingled roof and a 40 year old or older tiled or metal roof.
Another common cause of being declined by a home insurance company is out of date or poorly installed wiring or electrical panels that could lead to fires and are no longer up to code.
Finally, any older home which may have an old water heater, old pipes, poor ventilation or no central air at all may be declined for home insurance.
If your 4 point home inspection reveals any of these serious issues, there is still a possibility you will qualify for home insurance. However, the company may not cover the costs of the serious issues detailed in the report.
Does a 4 Point Inspection Lower Your Home Insurance?
If you have purchased an older home, many insurance companies may be less inclined to insure your home as older homes tend to need more repairs, renovations and upgrades. Even if you do get insured, the costs may be astronomical just due to the age of your home.
Getting a 4 point inspection may not lower your home insurance in this case but it may help you to at least still secure a home insurance plan.
In some cases, if you purchased an older home that has been completely renovated, you may be able to receive a lower insurance plan with the help of a successful 4 point inspection.
For the most part, a 4 point inspection will not technically lower your home insurance costs at all. However, for most old homes, a 4 point inspection is a must for insurance companies before they will even insure your home.
Some people fear that failing the inspection could mean they won’t get any home insurance at all but at times, some form of a negotiation can still be made for a partial insurance on the home.