Selling an older home has its disadvantages. Sometimes homeowners have to invest a lot of money to bring the home up to code.
Rules are in place to protect home buyers and mortgage lenders. The goal is to ensure a home isn’t being sold with hidden problems. We often hear about termite inspections but there is a long list of things that are covered under a home inspection.
Home purchases require homeowner insurance. Insurance companies can be hesitant about issuing a new policy if the home doesn’t pass a 4 point inspection.
Are you a home seller or buyer looking for information on what is a home insurance inspection? Keep reading to learn more about four-point inspections and why they are required.
What Is A 4 Point Inspection?
A 4 point inspection is an inspection that insurance companies can require of a homeowner when writing a policy. It differs from a buyer’s inspection which is an extensive inspection of a home during the home buying process.
The buyer’s inspection addresses a clause in mortgages that allows a buyer to back out of a home sale if there are significant issues uncovered. The homeowner and buyer can negotiate terms in the purchase contract and still move forward with the purchase.
With the 4 point inspection, the insurance company will not write the policy if the home fails in designated areas.
A home buyer cannot substitute the buyer’s inspection. The insurance company will only accept a 4 point inspection form covering the following areas.
- Electrical
- HVAC stands for Heating, Ventilation and Air Conditioning
- Plumbing
- Roofing
Some insurance companies provide the form they want to be completed.
Who do You Hire?
If you are in the process of buying a home and you’re hiring a professional home inspector, ask if they can also provide the 4 point inspection.
In cases where you are seeking new homeowner insurance, contact a home inspector to see if they provide the service. Most inspectors can do this for you, or you can hire a real estate inspection company that provides the service.
The only other option is to hire contractors in each area to do separate inspections. This could cost significantly more money.
It is important to understand that the insurance company will only accept inspections from licensed certified contractors. Do not risk a denial by having a friend sign-off on the form.
Don’t Do Nothing
It is important to note that if you need a new policy and refuse to get the inspection, your mortgage company can place forced insurance on your home.
This insurance can come at a high cost and not offer terms beneficial to the homeowner.
Don’t Lose Your Dream Home
A 4 point inspection may seem like a nuisance, but it is a small blip in the full scheme of things. If you’ve found the home you really love, do what it takes to satisfy the insurance company.
If you are in central Florida looking to get an inspector, we want to help. Click here if you are ready to schedule an appointment or have questions.
