A four-point inspection is an evaluation of a home or condominium where a certified inspector assesses how well its four major systems (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 coverage, but making the repairs can also open up more insurance options.
Is a 4-point home inspection required?
If you own an older home and your insurance is up for renewal or you’re purchasing an older home and need a new policy, you might be required to submit a four-point inspection as part of the underwriting process.
Four-point inspections can be required for condo owners, too. But if you own a condo, the inspection usually only focuses on interior issues, namely electrical wiring and panels, HVAC, and plumbing, because condo owners don’t own the building they live in.
Normally, a home insurance company requests a four point inspection when you apply for coverage. The results of the inspection help the insurance company determine how risky the home will be to insure. Based on the report and other factors, insurers can more accurately determine insurability, calculate premiums, and gauge the likelihood of potential insurance claims.
It’s important to 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.
Each insurance company 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.
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 before 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 home inspector will also look to see if you have a recalled electrical panel.
Failing and malfunctioning equipment is the second-leading cause of electrical fires and accounts for 13% of residential fires, so this is something insurance companies take very seriously. If your home is found uninsurable due to wiring issues, it’s 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 an application for coverage declined for problems with the 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, an insurer may decline your application for coverage because these types are more prone to bursting. Some insurance companies may still insure you, but they will likely exclude water damage. In that scenario, if there is water damage due to pipes bursting, you are 100% 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 insurability guidelines based on the age of the roof and the materials used to construct the roof. However, if your roof is younger but has apparent damage outside, or there are water leaks inside your home, then you might have your application for coverage declined.
How to prepare for a 4-point inspection
If you’re required to get a four-point inspection on your house for homeowners insurance, you might be wondering how to prepare or get a better score. It can be helpful to conduct your own inspection for the issues that the inspector will be looking for and make certain repairs ahead of time. Here are a few things you can do to prepare:
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Run your HVAC system. Let the heating and cooling systems run for at least a few hours to make sure they’re working. If you do, and the HVAC systems aren’t functioning, call a professional to get the systems up and running properly. Keep in mind that you’re not allowed to use a fireplace, oil furnace, or electric space heate as a replacement for central heating or cooling.
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Look for signs of water damage. Water damage often shows up as a slow leak over time, rather than a one-time event, so scan your home for potential issues. This may include bubbling or cracked paint, water stains, and musty odors, but also look for leaking, damaged, or deteriorating pipes. If you notice any of these issues around your house, consult a plumber to fix broken pipes, stop leaks, and secure loose drain hoses before your inspection.
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Assess the roof condition. Roof damage is one of the biggest sources of home insurance claims. From the ground, check the roof for missing and damaged shingles, warping, and rot. Then from the attic, check for signs of leaks and water damage. If you find any areas of concern, call a reputable roofing company to take a look and make repairs. If your roof is beyond repair, it might make sense to replace it before you apply for home insurance.
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Watch for electrical hazards. Check your house for exposed or ungrounded wiring, fuse boxes, double-tapped breakers, and knob-and-tube wiring. An outdated or faulty electrical system poses significant risks to homes and homeowners, like fires and electrocution. If anything jumps out at you as being potentially dangerous, have an electrician make the repairs before your four-point inspection.
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Collect receipts for repairs and renovations. If you’ve recently repaired or replaced any of your home’s major systems, gather the receipts or invoices before your inspection takes place. You should also find service records for system maintenance, like duct cleanings and air filter replacements. These documents can show the inspector how often the major systems are maintained, and what work has been done in the past.
4-point inspection vs. full 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’s 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.
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?
While four-point inspections are often requested by an insurance company, it’s often the homeowner’s responsibility to pay for it. 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.
