Four (4) Point Insurance Inspection – why are they are so important?
Four Point Insurance Inspections
The Four Point Insurance Inspection is performed on behalf of the insurance companies and, typically, as a requirement for the insurer offering insurance to the new homeowner. As insurance companies are beginning to see the benefit of the inspection, the program is spreading to other areas of the country. The benefit to the insurance company is, obviously, reduced loss risk on home owner’s insurance policies. This is an area of business that has, for many years, been a money loser for insurance companies. The Four Point Insurance Inspection consists of a visual survey of the following four primary components:
Roof
Electrical
HVAC (Heat, Ventilation & Air Conditioning)
Plumbing
The insurance companies are expecting the condition of the components listed above to be working as intended within the manufacturer’s specifications. The insurance companies are looking for the four systems to be in generally good working condition and fulfilling their intended function. If the home is an older home the insurance companies want to see that the systems have been updated.
The criteria used to judge the components include:
Current operating conditions
Scheduled maintenance requirements
Expected service life
There are other types of specialized programs that are similar in nature to this type of inspection and may exist in specific markets. For example, some states require low income buyers to obtain an inspection of a home prior to purchase to obtain a low interest loan. In Missouri, for example, the Missouri Housing Development Corporation (MHDC) has an inspection requirement that is similar to a Four Point Insurance Inspection. Another example would be in California where many homeowner insurance companies require verification of foundation attachment for homes built prior to 1965.
Why do I need a four point inspection?
Insurance companies have become increasingly reluctant to issue Homeowner Insurance Policies on older homes (usually 25 years old or more). Their common concern is that there 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 the condition of the HVAC, electrical and plumbing systems in an older home.
In summary, the Four Point Insurance Inspection program is gaining in popularity and will likely continue to expand as the insurance companies recognize the value of the inspection and the savings benefits it provides to the insurance carrier. Asper Inspections is proud to offer four point insurance inspections as part of our full line of inspection services.
Contact us today at 727-657-1159 for your Four-Point Insurance Inspection needs.