Purchasing a home is likely the biggest investment you’ll ever make. To protect that investment, having adequate home insurance coverage is essential. An important but often overlooked component of home insurance is the inspection process.
Home insurance inspections allow insurance providers to accurately evaluate the risks associated with insuring your home. They help ensure you have the right type and amount of coverage. Read on to learn everything you need to know about home insurance inspections.
Why Home Insurance Inspections Are Important
Insurers want to provide policies that properly cover each home based on its unique risks. The only way to fully understand those risks is to inspect the property.
An inspection gives the insurance company a detailed view of the home’s:
- Overall condition
- Construction materials
- Electrical, plumbing, and HVAC systems
- Roof age and material
- Other structures on the property like sheds or detached garages
Inspectors will also note the area’s susceptibility to natural disasters like floods, tornadoes, hurricanes, earthquakes, and wildfires
With a comprehensive inspection, insurers can develop tailored policies. The right amount of dwelling coverage, personal property coverage, and liability limits can be determined. Appropriate discounts and credits can be applied as well.
Essentially, a home insurance inspection allows your provider to fully assess the property so you get the coverage you need at a fair price.
When Do Home Insurance Inspections Happen?
In most cases, an inspector will evaluate the property’s exterior and interior when you first apply for a home insurance policy. However, there are other instances when your provider may send someone out:
At Renewal
Your insurer may re-inspect your home every few years when your policy is up for renewal. They want to ensure their information is current. Changes to the property like renovations, additions, or new roofs will be noted.
After Major Damage
If you experience serious damage from a covered event like a fire, flood, or storm, an inspection will follow repairs. The insurer needs to confirm repairs were completed properly before continuing coverage.
After Too Many Claims
Multiple claims in a short period, even for relatively minor issues like appliance failures or plumbing leaks, can trigger an inspection. The provider wants to check for underlying conditions contributing to frequent issues.
Before Dropping Coverage
On rare occasions, an insurer may decide to non-renew a policy because a home is too high-risk. A detailed inspection report demonstrating the property’s condition often precedes this decision.
When You Request It
You can request an inspection at any time if you want your insurer to re-evaluate your home’s risks. For instance, if you complete renovations or repairs that may merit lower premiums.
The key is maintaining open communication with your provider. Notify them of any significant changes to your property that could impact coverage needs.
What Happens During a Home Insurance Inspection?
The inspection process varies between insurance companies but will include a thorough review inside and out. Here are some specifics on what an inspector is looking for:
Roof
- Type of roof covering and age
- Condition of roof covering
- Evidence of leaks
- Age and condition of gutters and downspouts
Exterior
- Type of siding and exterior walls
- Condition of walls, siding, trim, and paint
- Windows and door condition and materials
- Foundation material and condition
- Garage or other structures like sheds
Electrical
- Age of electrical panel and condition
- Presence of circuit breakers or fuses
- Visible wiring condition
Plumbing
- Type of water supply lines
- Water heater fuel type, capacity, and age
- Signs of leaks
- Condition of fixtures like faucets and toilets
Heating and Cooling
- Type and approximate age of HVAC equipment
- Presence of smoke detectors and fire extinguishers
Interior
- Condition of ceilings, walls, and floors
- Presence of mold or water stains
Inspectors will also note the home’s proximity to natural hazards like heavily wooded areas. They may take photos throughout the process as well.
At the end, you should receive a copy of the full inspection report. Follow up on any recommended repairs as soon as possible.
How to Prepare for a Home Insurance Inspection
You want the inspection process to go smoothly. Make sure your home is ready with these tips:
- Clean inside and out – A cluttered, unkempt property may raise concerns for an inspector.
- Make repairs – Fix any broken windows, leaky plumbing, damaged siding, etc. beforehand.
- Trim bushes/trees – Overgrown landscaping can obstruct the exterior view.
- Have documents ready – Gather any permits, repair invoices, contractor estimates, etc. to share.
- Be present – Walk around with the inspector and answer any questions.
Also, know that inspectors must access all areas of the home to perform their review. Make sure attics and crawl spaces are accessible. Move vehicles and other obstructions away from the exterior as well.
The inspection is not meant to be an invasion of privacy. But inspectors do need to thoroughly examine the home’s systems and structure. Being prepared makes the process go more smoothly for everyone.
How Home Insurance Inspections Impact Your Premiums
The inspection report plays a key role in determining your home insurance rates. Here are some of the ways it can influence what you pay:
Providing Accurate Property Details
Details like house size, age, and construction materials help properly classify your home. More accurate information leads to more accurate premium quotes.
Assessing Risks
The condition of the roof, electrical, plumbing, and other home systems are strong indicators of future claim risk. Poor maintenance and outdated systems may increase your premiums.
Applying Credits and Discounts
The right discounts can save you 10% or more on premiums. Inspections help identify credits you may qualify for like new roof discounts.
Adjusting Dwelling Coverage
If the inspection reveals your home is over or underinsured, your dwelling limit can be adjusted accordingly. This ensures you have adequate funds to rebuild after a total loss.
Identifying Loss Mitigation Solutions
Based on inspection findings, your insurer may recommend ways to reduce risks. Implementing solutions like installing smoke detectors may earn discounts.
The key takeaway is that inspections allow providers to set rates based on the home’s true risks and characteristics. Accurate pricing means you pay exactly what makes sense for your property.
How to Dispute Inspection Findings
In rare cases, you may disagree with the inspection report. Maybe you recently replaced an aging roof that the inspector missed. Perhaps the inspector noted foundation cracks you believe are only minor.
If this happens, start by reaching out to your insurance company to review the report. Point out inaccuracies or issues that require correction. A phone call is usually the fastest way to resolve discrepancies.
Be prepared to provide evidence if needed. For example, offer contractor invoices showing the date you completed roof repairs. If the dispute relates to the home’s condition, a second opinion from your own contractor can challenge the initial findings.
Understand that inspectors follow standard protocols and procedures as they evaluate properties. Their reports are rarely intended to be punitive. Work collaboratively with your insurer to update the inspection record so it accurately reflects the home.
Most discrepancies can be cleared up by working directly with the insurance company. But you always have the option to switch providers if you cannot come to an agreement.
How Home Insurance Inspections Are Changing
Like nearly everything in insurance, inspections are evolving thanks to technology. Two of the biggest changes happening are:
Contactless Inspections
Traditionally, an inspector has to visit the home in-person to complete a review. Some insurers now offer virtual or contactless inspection options when applying for coverage.
You provide photos and videos that the inspector reviews remotely to assess risks and make coverage recommendations. This is more convenient but less thorough than an in-person inspection.
Drone Inspections
Drones equipped with cameras and sensors can photograph roof exteriors, peaks, and gutters that may be hard for an inspector to access safely. The images help identify potential trouble spots.
Some companies also use drone thermal imaging to detect heat leaks and insulation gaps not visible to the naked eye. Drones may supplement in-person inspections rather than replacing them entirely.
Technology will continue enhancing the home insurance inspection process. But the goal remains the same – accurately evaluating properties to protect homeowners with tailored policies.