What is Covered in a Four-Point Inspection?
When you are purchasing an older home in some states, the homeowners insurance provider may ask that you get a four-point inspection before underwriting your plan. If your insurance company has required a four-point home inspection, you’ll need to find an inspector who offers this service. This abbreviated inspection covers the plumbing, electrical system, HVAC system, and roofing system.
Why Do Insurance Companies Require a Four-Point Inspection?
A four-point inspection reports on the main components of a home. The four components covered are the most costly to replace and pose the greatest risks if they malfunction. The insurance company may also require this inspection if you already own a home, but are looking for better prices for your policy.
Insurance companies often request a four-point inspection before providing insurance coverage for homes that are over forty years old and for rental properties that are over thirty years of age.
Before insuring the home, your insurance company will want to make sure that the roof isn’t failing or at the end of its lifespan. Roofs are expensive to replace and roof claims are some of the most common for insurance companies. Also, a failing roof can cause other problems resulting in more claims like water damage to the attic and ceilings and damaged belongings.
The HVAC system is another expensive system in the house that is vital for the health of the home. An air conditioner can leak and cause water damage and a furnace can cause a fire. The insurance company wants to be sure the home is climate-controlled and that the system is in good shape.
Faulty plumbing systems usually result in insurance claims when leaks and flooding occur. The four-point inspection checks the plumbing pipes and water-using appliances to make sure they are installed correctly and in good condition.
Electrical systems pose hazards like electrocution and house fires. An insurance company is less likely to insure a home with aluminum wiring, which is known to increase these risks.
Benefits of a Four-Point Inspection
A four-point inspection will thoroughly review the HVAC system, the roof, the plumbing, and the electrical system of the home. It often costs less than a full home inspection and gives the insurance company everything they need to make a decision on insuring your home.