A home insurance inspection is one of the most crucial steps in purchasing a home. The inspection process includes a detailed visual examination of a property inside and outside. A home inspection aims to assess the house’s condition and identify potential risks, damages, and safety hazards.
Current, new, and potential homeowners may opt for an insurance inspection. The inspection can help potential owners decide whether to purchase a property and help homeowners insurance companies create a customized policy.
Here’s what to know about a home insurance inspection and what to expect.
Home inspectors are typically hired by recent homebuyers, homeowners looking to sell, or homeowners who want to check for any issues.1
While it’s not required, homeowners and buyers may want to attend the inspection and talk with the inspector as they examine particular areas to gain insight into any concerns or safety issues. If you’re purchasing a home, it’s a good idea to pay close attention and ask questions so you’re fully informed when it comes time to finalize your purchase.
The main type of inspection is known as a 4-point inspection. This means that the focus is on four key areas when looking for potential problems: the roof, electrical, plumbing, and HVAC.
During the inspection of your home, the professional will examine all major systems. A standard home inspection includes exterior and interior inspections. For example, the insurance company will want to examine the exterior of your roof and may also check the attic or other areas near the roof for water damage.
Some insurance companies require a full home inspection. The main reasons your house may need a full home inspection include if it’s a brand-new home, if you’re looking to increase the value of your property, and if your mortgage lender requires a full inspection before purchase.
On average, a home inspection takes between two and four hours to complete, depending on the size and condition of the home. Ideally, the inspector has access to all areas of the house, but they’ll note if they can’t access any areas in their report. The inspector will crawl into spaces, climb on the roof, and use a flashlight to check areas that aren’t usually visible, looking for potential issues.
An inspector will not come unannounced, and all parties must be notified of the inspector’s planned arrival at the property.
During a home inspection, the inspector will tour the entire property. They pay particular attention to the 4-point inspection areas as well as other core areas of the home. These include:2
While all home inspections are thorough, some may require a particularly thorough inspection. Typically, inspectors check older homes and homes located in higher-risk areas for storms or natural disasters with extra caution to avoid missing potential issues. New homes may also have extensive inspections to find potential problems.
Since the inspection affects the cost of your insurance coverage, it’s a good idea to prepare your home beforehand to ensure you get the best rates possible. Additionally, this inspection will help set the home’s replacement cost value. Taking a few steps before your inspection could save you thousands of dollars.
Here are a few things you can do to help lower your risk of a more expensive policy:3
Make necessary repairs. Check for issues that could affect safety and home value, such as cracked sidewalks, leaky faucets, broken windows, or damaged siding. Make any necessary repairs beforehand.
Check your safety systems. Check the batteries on your smoke alarms and CO detectors. Ensure you have enough detectors in your home and that they’re functioning properly. You should also check your fire extinguisher to ensure it’s in good working order.
Update security measures. If you’ve been putting off installing a doorbell cam, alarm system, or fence around your pool, try to prioritize it before your inspection. Safety features can help lower your insurance premium.
Clean the house and yard. Ensure your home and yard are clean and clear so the insurance inspector can move around your home safely. Clear away or secure any attractive nuisances that could affect your rates. Trim any bushes and trees too close to your home.
Secure your pets. If you have pets, make sure they’re safely out of the way. It’s a good idea to have a friend or family member watch your pets or board them for the day to eliminate extra foot traffic that could impede the inspection.
Once the inspector examines your home, they’ll complete a report and give it to you and your insurance agent. While they’re at your house, you may be able to ask questions and get feedback from them. Don’t be surprised if you receive a very long report. This report aims to detail every potential problem that could affect the value and safety of your property.
You should primarily be concerned with defects that could affect the value and safety of your house significantly.
At the end of the inspection process, one of two things will likely happen.
Your insurance rates may go up or down following an inspection. If you’ve improved the home significantly or added safety features, you could see extra discounts on your current policy. Alternatively, the rate could go up if the inspector found new problems or if the changes you made increase the replacement cost of your home. In some cases, your insurance rate could stay exactly the same. If your rates fluctuate, you can always ask your insurance agent why, if you can make any improvements, or if you qualify for any discounts. If your home is in good shape, you should have nothing to worry about.
An insurance company may decide to cancel or not renew your current policy after an inspection. This typically happens if a home falls into disrepair or the insurance company discovers significant roof or foundation issues. Most insurers will offer a deadline for making necessary repairs before canceling your policy.
If an insurance company cancels your policy because you failed an inspection, you should immediately search and apply for new homeowners insurance. Your new company will likely want to do an inspection, and you could have issues obtaining new coverage if you don’t make repairs.
Insurance inspections may sound intimidating, but they’re an important part of home buying and homeownership. If you still have concerns or questions, check out the answers below.
When you purchase a homeowners insurance policy, the company sends an inspector to check the condition of your home. This inspection will determine whether the insurance company provides coverage, and it can influence the cost of your policy.
The home inspector will examine key areas, known as a four-point inspection. These are the roof, plumbing, electrical, and HVAC. They’ll also pay close attention to your foundation and yard and note any safety features, like smoke alarms, fire extinguishers, and security systems.
The inspection report is a detailed study of your property. The report identifies potential safety issues and anything affecting your home’s value. Underwriters use this information to set the coverage limits and premiums in your homeowners insurance policy.
Finding a policy that doesn’t require an inspection is possible but can be difficult. You’ll likely pay more for a policy with no inspection requirements. Alternatively, if you’ve had a home inspection within the last year, you may not need a new one when you switch insurers.
If your insurer cancels your policy after a failed inspection, search for a new one as quickly as possible. Review your report and your cancellation notice to see why your insurer decided to cancel. Make any necessary repairs to ensure you qualify for coverage with a new insurer.
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