What is a 4 point inspection?
Insurance companies may request a 4 Point Inspection be performed. 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. 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. This is not a safety inspection.
A properly-completed 4-point is designed to capture all possible items that may fall afoul of any insurance company’s underwriting guidelines. In order for the 4-point to be useful and accepted by all insurance companies operating in Florida, the insurers have to be confident that the inspection will give them the information they need to make their underwriting decision.
As a result, many conditions that are reported on a 4-point inspection may be a problem for some insurance carrier, but may NOT be a problem for YOUR insurance carrier. This is where the expertise of your insurance agent is so important. It’s your trusted insurance agent that can help confirm and clarify whether or not a system needs to be repaired, updated, or replaced.
Before you pay for a home inspection you should research with your insurance company if they will require a Four Point Inspection Report. You should check with your insurance company in advance to see if our Four Point Inspection form will satisfy their requirements. We cannot guarantee they will accept our form and additional charges will apply if we have to use their form.
A properly-completed 4-point is designed to capture all possible items that may fall afoul of any insurance company’s underwriting guidelines. In order for the 4-point to be useful and accepted by all insurance companies operating in Florida, the insurers have to be confident that the inspection will give them the information they need to make their underwriting decision.
As a result, many conditions that are reported on a 4-point inspection may be a problem for some insurance carrier, but may NOT be a problem for YOUR insurance carrier. This is where the expertise of your insurance agent is so important. It’s your trusted insurance agent that can help confirm and clarify whether or not a system needs to be repaired, updated, or replaced.
Before you pay for a home inspection you should research with your insurance company if they will require a Four Point Inspection Report. You should check with your insurance company in advance to see if our Four Point Inspection form will satisfy their requirements. We cannot guarantee they will accept our form and additional charges will apply if we have to use their form.
Can I use my regular home inspection instead?
4 point vs full inspection
You can provide your insurance company the full home inspection in lieu of a 4 point inspection. However, we strongly recommend that you don't do this. Often, a home inspection will also list other minor and/or cosmetic damages. We don't recommend sending all the minor issues to your prospective insurance company (unless you have been asked to do this).
When a home is under contract, there is a clause allowing for the buyers to get a full home inspection. If an inspection uncovers something the buyers don’t feel comfortable with, this clause allows them to void the contract and receive any earnest money back.
Because a 4 point inspection only looks at 4 points (the ones mentioned above), it doesn’t legally satisfy this clause. Therefore, even if the four point inspection shows that the roof is 20 years old, the buyers may not be able to get out of their contract.
However, it’s best not to view buyer’s inspections as legal requirements, but as a buyer relying on a professional home inspector’s educated and professional ability to help protect the buyer’s interest in the property.
It’s part of the old adage, “buyer beware.”
When a home is under contract, there is a clause allowing for the buyers to get a full home inspection. If an inspection uncovers something the buyers don’t feel comfortable with, this clause allows them to void the contract and receive any earnest money back.
Because a 4 point inspection only looks at 4 points (the ones mentioned above), it doesn’t legally satisfy this clause. Therefore, even if the four point inspection shows that the roof is 20 years old, the buyers may not be able to get out of their contract.
However, it’s best not to view buyer’s inspections as legal requirements, but as a buyer relying on a professional home inspector’s educated and professional ability to help protect the buyer’s interest in the property.
It’s part of the old adage, “buyer beware.”