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As you can imagine, with the recent events in the insurance and housing industries, insurance companies have become reluctant to offer poicies on homes that are over 30 years old). Why do I need a four point inspection?
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. 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. A "Four Point Inspection" focuses only on four main areas of interest in a home:
• HVAC (Heating, Ventilation and Air Conditioning)
• Electrical wiring and panels
• Plumbing connections and fixtures
• Roof Forms. Are there special forms ? YES ! Some insurance companies have thier own forms. Bay Area Home Inspection also has computer generated report forms for each of the 4 inspection areas. This helps move the process along by using a Licensed home inspector that can do ALL four of the required inspections at one time. Who can perform this four point inspection ? Can I Fill out the paper work myself?
The Michigan and Wsiconsin companies prefer to use licenced and qualified Home Inspectors, Building Contractors , Engineers, to complete the four point inspection. That are able to provide a professional opion to the four areas inspected. A home owner can not fill out the four point inspection form themselfs. Can I not comply with this four point inspection type of request?
There have been reports of hardships maintaining coverage and or acquiring new insurance in Michigan due to the four point inspection. Some Insurance providers may not cover you anymore without the four point home inspection Guarantees. Who can Guarantee the four point inspection forms enable me to be approved for Insurance?
NONE ! Please be clear that Bay Area Home Inspection, LLC is not employed by Insurance companies, and cannot guarantee any aspect of the four point inspection beyond the current condition of the components inspected, including, but not limited to: INSURABILITY, UNDERWRITING, NEED FOR ADDITIONAL CERTIFICATION OR INSPECTIONS SUBSEQUENT TO INITIAL INSPECTION, WORK TO BE PERFORMED FOLLOWING INSPECTION, Etc.. The Four Point Home Insurance Inspection was created after Hurricane Andrew struck Florida in 1992. It 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 homeowners insurance policies. This is an area of business that has, for many years, been a money loser for insurance companies.
If your prospective insurance company has requested a 4-point inspection on your new home, it is not worth loosing sleep over. Of course, if I find that the roof is in need of replacement, they may exclude coverage for that portion of the home.
If you are buying a home, the very best time to get a thorough inspection is before signing the purchase agreement. If it has been signed and you excercized the home inspection contingency, you will have the opportunity to get it inspected and, discuss undisclosed deficencies ( in the disclosure statement from the seller) with the seller afterwards. 1-800-935-9384
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4 Point Insurance