A Four Point Inspection will help in keeping your home insurance low and focuses only on four main areas of interest in a home and are of great interest and concerns by insurance companies that will insure your home.
- HVAC (Heating, Ventilation and Air Conditioning)
- Electrical wiring and panels
- Plumbing connections and fixtures
The roof is the most important, most asked about and most looked at. The inspection and report describes the condition and age of these elements. This is why, buying an old home, is an investment that going to need money to put into the house, to save some money on your home insurance, or even get insurance at all. This could force you to withdraw your offer, waste your time, and cost you money in the process.
Insurance companies have become increasingly reluctant to issue Homeowner Insurance Policies on older homes (usually 25 years old or more).
Equally important, is the home in a flood zone or not. This too would add to the cost of insurance. Ask your agent if the home is, and expect to pay more on your insurance.
The insurance company common concerns are they may be conditions in an older home that could become a liability to them. For instance; a home with a roof nearing the end of its reliable service life may fail while under the policy and the homeowner may seek reimbursement from their insurance company for damages to the home or its contents. Similar concerns extend to condition of the HVAC, electrical and plumbing systems in an older home. If these elements are in poor condition, in need of being updated or replaced or were improperly installed, they may fail and cause fire or water damage to a home.
Newer homes are assumed (by the insurance companies) to not have these problems as often as older homes. However, they still should have home inspection done on them to be certain they were built properly and with the codes of it’s’ times. It is like getting a second opinion on a doctor opinion. You may not need the 4 point report, but you are making a sizable investment and the fee would be minimal and give peace of mind as well.
Most insurance companies will accept forms from companies that do home inspections provided that they are filled out by qualified people. This also should be the same person that is hire to do the home inspection. So when you hire a home inspector as you should, regardless of age, ask him if he can give a 4 POINT inspection as well. Actually he did this inspection as he was performing the home inspection he was hired for. An honest inspector would not charge you a fee, or one just for administration cost, that all. As with all things, shop around and asked your agent his recommended choices. Most likely it would be an inspector that would be able to give the 4-Piont as well.
The form insurance company are looking for, are just a page or two, and the worked requested was done when the inspection on the home was done, and the home inspection report should be multiple pages in length with discoveries, opinions and faults shows on the entire home, life expectancy of items and flaws pointed out in pictures.
Once you have successfully secure your home, and enjoying it, it would be wise to care and keep up those items of interest that are concerns of the insurance companies. This would keep your insurance costs low as well as you home value high.
I hope you found the above insightful. Thanks for taking your time in reading it. Any question, please call or drop me an email.
Remember: “Pictures without ALL the information are never the total picture and always the entire story ~!”
Ron Wolchesky (Realtor Ron W)
REALTOR®. Short Sales & Foreclosure Resource (SFR) License in Florida Cell: 239-209-1923 : H: 239-349-4684 Email: RealtoRronW@yahoo.com