Home inspections are a great way to gain information about the condition and quality of a home you are buying or selling. However, when the inspection is being done for insurance purposes, it isn’t necessary to order a complete inspection. Instead, a 4-point inspection provides the information needed by the insurer.

What Does a 4-Point Inspection Look for?

A 4-point home inspection reviews the items that matter the most to an insurance company. To an underwriter, it’s not important if the windows are drafty or the hardwood is low-grade. Those factors impact value, but are not considered risk factors to an insurance company.

The inspection looks at systems and components that affect the home’s risk. They include the plumbing, electrical, heating and cooling system, and the roof. Problems with any of these can lead to an insurance claim. A plumbing leak, like a burst pipe, can create costly water damage. Electrical issues may lead to fires. The heating and cooling system may be a fire concern and is very expensive to replace. Insurance companies also want to know if it’s likely the roof could leak, causing water damage, or fail completely. Information about the condition of those four systems helps the insurer write a policy for the home.

Inspectors Are Well-Qualified

Inspectors provide as much detail in these four areas as they normally would on a complete home inspection. You will receive a detailed report of the findings. The inspector is a third-party that will provide an unbiased, factual assessment.

A 4-Point Inspection is Often Required for Older Homes

The insurance company wants to offer the homeowner the best possible premium while still knowing the full scope of the risk. A 40 year old home may have a 5 year old roof, so it benefits the owner to have the inspection done.

The 4-Point Inspection Helps the Occupant

The 4-point home inspection is not strictly for the benefit of the insurance company. The point of the inspection is to identify areas that pose a risk for the company, but those are also risks for the homeowner. No matter how good your insurance coverage is, your property and family is in danger if there is a fire hazard present. This type of inspection provides important information to the homeowner.

By requesting a 4-point home inspection on the property, an insurance company can understand the relative risk of fires, storm damage, water problems, and other issues.

Encompass Home Inspection Service offers home inspection services in New Jersey. Contact us to request an appointment.