A home insurance inspection is an inspection of your primary residence and any additional structures on your property that helps your insurance company identify your home’s replacement cost and risk exposure. Your insurer uses this information to verify your home’s condition and features to ensure your premium calculation is accurate when you either apply for coverage or renew your policy.
When do you need a home insurance inspection?
You usually only need a home insurance inspection if your insurer asks for one. Every company has its own reasons for requiring inspections, but they’re fairly common when you apply for home insurance coverage with a new carrier for your existing home or after you’ve recently completed renovations or updates. Your insurer may also ask for an inspection at renewal if you own an older home.
Home inspections are less common on a newly built home,
If you already have home insurance, you don’t have an older home, and no significant changes have been made to your home, then you may not need an inspection to get insurance.
What to expect during a home insurance inspection?
Many insurance companies send an inspector to your home to conduct the inspection. If that’s the case with your insurer, then the inspector may call you to schedule an appointment or they may simply drive by to look at your home.
If the inspector comes to your house, they may take pictures to document its condition.There are a number of things that inspectors look for as they inspect your home. High on that list is unrepaired damage, but they also want to make sure your home is generally safe and fits within the insurance company’s underwriting guidelines. This means the inspector may:
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Inspect the exterior of your home. Inspectors typically check the framing, roofing, and other structural elements of your home for signs of damage, like buckling shingles or missing bricks. They might also note signs of neglect, like clogged gutters.
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Check the cellar and attic. An inspector looks in your basement and attic for signs of water damage and pest infestations. They also check for any issues with your foundation.
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Evaluate your home’s critical systems. Inspectors check your home’s plumbing, electrical wiring, roof, and HVAC systems to see that they’re in good working order. One type of home inspection that includes major systems is called a four-point inspection.
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Assess the area around your home. Not only might the inspector evaluate other structures on your property, such as pools, sheds, walkways, and detached garages, but they may also make note of trees in need of trimming and other issues that may cause damage to your home.
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Check for security systems. Centrally monitored alarm systems make your home safer and may put you in line for a discount.
The price for a home inspection is often built into the rate for most policies and varies by state, but you may also be charged a fee to cover the cost of the home inspection.
What is a self-inspection for home insurance?
Self-inspections are somewhat new in the home insurance industry. Essentially, this is an option that some insurers offer homeowners in lieu of having professional inspectors evaluate their homes. In this case, the insurer sends you a checklist of things to look for during the inspection that you document with photos of your home.
How to prepare for a home inspection
Again, every insurance company has its own way of inspecting homes. Some insurers may allow for self-inspections, but others require that a professional evaluates your home. Those that require a professional may have the inspector set up an appointment with you, but that isn’t always the case. An inspector can show up unannounced.
All that said, your insurance company usually lets you know if you need an inspection. When that happens, you may want to:
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Clean up. Be sure to remove debris or anything else that may create a potential hazard.
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Provide access to the basement and attic. An onsite inspector may need to get into these areas, so remove any obstructions.
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Check safety measures. Make sure smoke detectors and fire extinguishers are installed and working properly.
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Test appliances and systems. Make sure appliances including your HVAC turn on and are in good condition.
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Make small fixes. Take a look at the places the inspector is likely to assess and see if there are issues you can take care of immediately.
What can I expect after a home insurance inspection?
Once the inspection is complete, the inspector will likely send you and your insurance company a full report. Your insurer will use this report and other information to decide if it can offer you a home insurance policy, what the replacement cost of your home is, and how much premium to charge.
When you get a copy of your inspection, read through it carefully and contact the inspector if you have questions or think something is inaccurate. Sometimes just a little additional information can make a difference.
But even if the inspector finds minor issues with your home, your insurance company usually gives you time to make necessary repairs so you can get covered.
Can my home insurance be canceled after a failed inspection?
Your home insurance can be canceled if the inspection isn’t completed in time or if the inspector finds significant issues that make your home ineligible. For example, a major safety concern, like a roof that needs replacing or an out-of-date electrical panel, may be enough reason for your insurer to rescind its offer of coverage.
Can my home insurance premium be impacted by inspection?
Your premium can be impacted by a home inspection, especially if the inspection turns up a risk that your insurance company hadn’t known about when it first issued your policy. You might also see a change in your premium if it turns out your home’s replacement cost estimate was off.
But these changes aren’t always going to mean you own more money. Your premium may go down if the inspector finds upgrades that improve your home’s ability to withstand natural disasters.
