Unfortunately, not all of life’s surprises are good ones. Windstorms, snowstorms, and faulty wiring can be unpredictable and very destructive. Protecting your home from harm is the reason we invest in homeowners insurance. In some cases, it may be necessary to get your home or the home you are planning to purchase inspected in order to get the homeowners coverage you need. In this blog we will talk about what home insurance inspections are and what they involve.
What Is a Home Insurance Inspection?
First, let’s clarify what a home insurance inspection is not. It’s not the kind of inspection that homebuyers get when they are deciding whether to purchase a home. That kind of full inspection from the basement to the rafters is designed to evaluate the property for any safety or structural issues it may have so that buyers can make well informed decisions.
A home insurance inspection is less extensive. An insurance company doesn’t care if the bathtub tap drips but will be concerned about an old fuse box. In inspecting the property, the insurance company is determining the risk of insuring it. Also, the inspector needs to examine all aspects of the home to provide adequate insurance coverage to the homeowner or homeowner-to-be.
Not all inspections are the same. In some cases, the inspector may only need to see the exterior of the home to inspect the structure and the roof. Other times, the inspector will also need to examine the interior, specifically the electrical, plumbing, and HVAC systems, as well as smoke alarms, home security systems, or other safety features.
The inspector wants to see that the home has no visible signs of damage or clear safety risks - for the occupants and any visitors. Crumbling front steps are a hazard, for example, and increase the chance of an accident - and a potential liability claim against the homeowners.
The inspector will be looking for warning signs like: water damage, mold or mildew, pest or insect infestations, rot, structural cracks, peeling paint, missing shingles, or poor ventilation. The safety of the neighborhood or general area will also be of interest because homeowners insurance protects against loss due to theft and other damage as well.
You may be asked about the history of the home and any repairs or improvements that have been done, and the inspector may also ask about your current insurance coverage and the coverage that you are applying for.
Who Conducts Home Insurance Inspections?
Typically, a home insurance inspection will be done by a professional third-party inspector, and not an employee of the insurance company. The inspector may or may not give notice before their visit. After the visit, you can expect that the inspector will give you a written report of their findings and any recommendations they have.
Homeowners are usually not responsible for the cost of the inspection, but they may be required to pay for repairs or updates that the inspector deems necessary before they can get the coverage they are applying for.
Is an Inspection Required for Homeowners Insurance?
Inspections are not always required to purchase homeowners coverage. It’s up to the insurance company and is based on their general assessment of risk. You’re more likely to have to have a home insurance inspection done if your home is old, if you’re switching insurance companies, if the insurer needs more information to determine replacement value of certain items, or if you haven't had an inspection in the recent past.
If you do have an inspection done, and your home is in good condition, you may be able to negotiate a lower insurance premium for your coverage.
After the Inspection
After the home insurance inspection is complete, the insurance company will evaluate the inspector’s report and any pictures they have to determine what action to take. There are three possibilities for the insured: the insurance company may choose to continue to offer the same insurance, offer it with modifications like policy or premium changes, or cancel it entirely. Generally, an insurer will not cancel a policy without giving the insured the opportunity to make repairs or take care of safety concerns first.
Inspections tend to make people nervous, but the purpose behind home insurance inspections is to ensure that your homeowners policy matches your needs and protects your home and family from unexpected, potentially catastrophic surprises down the road.
If you have any questions about inspections, homeowners insurance, or your specific home or coverage, please contact us at Navisure Insurance Group. We will be happy to provide guidance to you about your unique situation. Call us today!
COREY VANDERMEER | PRESIDENT
Corey started his insurance career in the claims department for a national carrier and learned the basics of insurance coverage and how it’s applied. From there he decided to take the jump into sales and joined an independent insurance agency. Here he learned how to build coverage around the needs of each individual and cater to every client. When Corey decided to start an insurance agency he did so with the intention of simplifying the process of getting insured. With a focus on technology and simplicity; his goal was to create an insurance agency that was different from those currently dominating the market place.
When he’s not working, Corey enjoys golfing, fly fishing and spending time with his wife and kids. Together they enjoy traveling to Northern Michigan and to his wife’s hometown of San Francisco.