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Oct 01, 2018Four Point, Inspection ServicesBy support

A Guide to the 4-Point Inspection

The inspection is known as a 4-Point Inspection’s many times required for a homeowner to maintain or get insurance coverage. Requirements of the inspection were designed by the insurance company so that they’re able to get a much better understanding of a structure for which they are providing insurance.

This especially is pertinent when an older house is being insured. The older homes have had a lot more time to have their systems replaced or repaired or for their structure to possibly fall into disrepair. Homes that are older also might have been using construction materials or techniques that, although they were normal when they were being used, may have been phased out because there are more modern practices. These kinds of things are all critical and essential for insurance companies to know about since it will help them to determine whether or not a house can be insured with their insurance company.

An example would be a house that was built in 1958. This kind of house would have a fuse box as well as fuses that screw in since this was a standard practice back then. These types of fuse boxes still exist, and homeowners can buy replacement fuses as they need to. However, a lot of insurance carriers have rules when it comes to underwriting that will prohibit them from providing insurance for this type of house knowingly with these old fuse boxes. The inspection is what’s going to let the carrier know what the house has. Since they are not going to know until they receive the inspection, this inspection often is required when a home is being purchased that is a lot older. This means that the carrier is going to be sure about the home’s essential features before they insure it.

These types of inspections also can be requested when there’s a lot of other types of situations that aren’t directly related to the home’s age. Some of the companies do one on practically all of their policies.

What are those four points?

The name of the inspection comes from the four important systems in a home that usually will cause someone to claim on their insurance. For each one of these four items, the inspection’s limited to each system’s visible parts.
These systems are:

  • HVAC system (Heating, Air-conditioning, and Ventilation system)
  • Roof system
  • Plumbing system
  • Electrical system

There are two things that an insurance company will be looking for when it comes to the systems.

The first thing they‘ll be Interested in is the condition of each of the systems. They want to know whether they’re a new system, a used system, and what kind of shape they are in. Is there evidence of any repairs that were made? If there have been repairs, do those repairs look as though they were done professionally? If there is any deficiencies or damage that can be noted, there’s a good chance that they’ll have to be corrected to maintain or get an insurance policy.

Another thing that they will be looking at is how old the components are. If you’re purchasing a home that is older, there’s a good chance that the age of the features is going to be far beyond the carrier’s maximum age for underwriting. This is even true if the component’s condition looks to be in good shape. If the inspection says that there may he deficiency, you shouldn’t panic.

When the four-point inspection is appropriately completed, it should capture all of the possible items which might be a problem for the underwriting guidelines of a company. For a four-point inspection to prove it to usefulness and for it to be accepted by the insurance companies, insurance companies must be confident, Inspections going to give them the necessary information for making their decision.

A lot of conditions that have been reported on the four-point inspection might be an issue for some of the insurance companies. However, your chosen insurance carrier might not see it as a problem. That’s why you want to have an insurance agent that knows what they’re doing and can work with things. It’s a trusted insurance agent who will be able to clarify and confirm if systems need repairing, updating, or replacement. They’ll also be able to tell after they’ve reviewed reputable four-point inspection whether it’s better to choose a different company for your insurance with guidelines for underwriting that will fit your circumstances better.

An insurance company always should be willing to tell you about the findings. However, it’s going to be the agent who is going to take the results and ensure that you have the best policy with the best coverage, insured with the best possible carrier.

Keep in mind everything about a four-point inspection is related to retaining or obtaining homeowners insurance. This inspection is a limited scope, and it only takes around 20 to 30 minutes for the most part. It is focused on coverage, having nothing at all to do with the kind of inspection you should get if you were trying to decide whether you should buy a home or not. That kind of inspection is a comprehensive home inspection, and it often takes anywhere from 3 to 4 hours. This type of inspection will take a look at, and document lots of features are throughout the home. Primarily or exclusively using this type of inspection to decide whether or not you should buy your home isn’t a good idea.