A four-point inspection is a home or condominium inspection that evaluates how well the four major systems of your home (i.e., the roof, electrical, plumbing, and HVAC systems) are working. These systems are often the source of claims, so insurance companies may require a four-point inspection before offering coverage.
If a home fails all or part of the inspection, the inspector typically goes over what needs to be fixed or replaced to alleviate deficiencies. The fixes may be necessary to obtain insurance, but making the repairs can open up more insurance options.
Who needs a 4-point inspection?
Homeowners who have older homes may be asked to get a four-point inspection before they can get home insurance. This can be true for condo owners, too. However, then the inspection usually only focuses on interior issues, namely electrical wiring and panels, HVAC, and plumbing.
You should note that a four-point inspection cannot replace a new home inspection. If your home insurance company says you have to have an inspection, be sure to ask specifically what type of inspection you need. As a homeowner, you sometimes must provide the right professional inspection report for your property to meet the requirements of getting your house insured.
Your 4-point home inspection checklist
A four-point inspection looks at your home’s major systems, but what exactly does the inspector evaluate? Here is a helpful checklist you can review to help you prepare for your four-point inspection.
Electrical wiring and panels
What kind of wiring is in your home? If a home has copper, aluminum, or knob-and-tube wires, chances are it will not be insurable due to fire hazard risks. The inspector will also look to see if you have a recalled electrical panel.
Faulty wires cause nearly 90 percent of residential fires, so this is something insurance companies take very seriously. If your home is found uninsurable due to wiring issues, it is vital to budget for necessary upgrades. If you don’t, your risk of fire is significantly amplified.
HVAC
Does your home have central heating and air conditioning? What condition are the units in? Are there any signs of obvious damage such as leakage? Remember each insurance company determines what it considers “acceptable” when insuring older homes; however, it’s not uncommon to see coverage denied for lack of central air and heat.
Plumbing
Inspectors look at the type of pipes in your home to determine how likely they are to burst. If polybutylene plumbing is found, coverage can be denied as these are more prone to bursting. However, some insurance companies may still insure you but will exclude water damage. In that scenario, if there is a flood due to pipes bursting, you are 100 percent responsible for the total expense.
Roof
What’s in a roof? Roof age, material, and condition are what inspectors look for. Generally, insurance companies have age limits for how old a roof can be based on what it’s made of. However, if your roof is younger but has apparent damage outside, or there are water leaks inside your home, then you might be denied coverage
Is a 4-point inspection required?
If you own an older home or condo and your insurance is up for renewal or you’re purchasing an older home, chances are you will be required to submit a four-point inspection as part of the underwriting process. This practice is most common in Florida and other coastal states.
Each insurance agency has its own set of rules regarding who needs an inspection. The International Association of Certified Home Inspections (NACHI) provides a universal four-point inspection form, but using this form isn’t required by law.
4-point inspection vs. home inspection
A four-point inspection is specifically for homeowners insurance and shouldn’t be confused with a new home inspection (also called a buyer inspection, real estate inspection, home inspection, or full inspection depending where you live).
This distinction is important because the new home inspection is required to close on a home and meet the eligibility criteria for your mortgage. It also takes two to three hours to complete. A four-point inspection takes about 30 minutes and is only visual. However, if you buy an older home you might be required to have both inspections.
Four-point inspections tend to be more prevalent in coastal states, specifically in Florida and Texas. Coastal areas experience more inclement weather that leads to catastrophic devastation, and this prompts lawmakers to frequently update building codes.Homes built before the new codes passed were made in accordance to different standards, so they may not be considered as safe as more modern homes.
4-point inspection vs. wind mitigation inspection
A wind mitigation inspection determines how well your home resists wind damage by going over certain building attributes, such as:
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Roof covering.
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Roof-deck attachment.
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Opening protections.
As in a four-point inspection, this type of inspection takes a close look at your roof. However, a wind mitigation inspection also involves other aspects of your home’s structure and can help you get a discount on your home insurance.
What does a 4-point inspection cost?
You can expect to pay anywhere from $50 to $175 for a four-point inspection. The cost varies based on location and inspection company.
You can usually find affordable services if you do your research. Make sure that the company you call is licensed and has good reviews, as you need it to correctly evaluate your home's current state.
