Is the 4-point insurance inspection strictly pass or fail?
Tuesday, July 10, 2018
Not exactly. The report is a questionnaire form created by the insurance company that is filled out by a home inspector and submitted, along with photo documentation, to be reviewed by a company underwriter. Some insurers require that their own form be used, while others allow a generic 4-point form.
The underwriter, not the home inspector, is the one who determines if the findings are acceptable for issuing your homeowner’s policy. It is a moving target from the inspector’s point of view because each company has slightly different standards for acceptability, and they change over time. So the inspector cannot precisely tell you what the underwriter will determine.
There are three possible outcomes when a 4-point report is submitted to the company:
- It is approved.
- Coverage is denied because of one or more significant defects that are likely to cause a claim in the future, such as an older roof with an active leak.
- Coverage is approved with the stipulation that specific problems be repaired or replaced within a certain time frame, usually 30 days.
While one company may decline to insure a property because of a defect, another insurer might issue the policy and stipulate a deadline for submitting proof of repairs for the same defect.
If you want to see what a 4-point form looks like, click on either the image below to download and view a CItzens Insurance 4-point form. It is the form most likely necessary for Florida homes 50-years and older. The home inspector association InterNACHI generic form that is accepted by many insurance companies, and require that their speicalized form be used. Also, see our blog posts Why does my homeowner's insurance want a four point inspection? and How do I get insurance if my home can't pass a 4-point inspection?
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Here’s links to a collection of our other blog posts about INSURANCE:
How To Look At A House
McGarry and Madsen's home inspection blog for buyers of
site-built, mobile/manfuactued and modular homes
for Links to Collections
of Blog Posts