Don’t let an insurance rate spike sneak up on you
Insurance companies use a home insurance inspection to look for potential risks or liabilities.
Insurance inspections are not as thorough as standard home inspections.
You can prepare the exterior and interior of your home prior to inspection.
The inspection may cause your insurance to stay the same, be modified, or be canceled.
If you’re getting ready to insure your new home or renew your previous home insurance policy, you may be required to have a home insurance inspection. This inspection evaluates the risk factors of your home and the cost of replacements. Prepare your home ahead of time using this quick inspection guide to stay ahead of your insurance inspector and catch issues before they do.
A home insurance inspection is completed by your insurance company when you renew or get a homeowner’s insurance policy. The insurance company uses this inspection to assess the risk indicators of your home in an attempt to avoid potential losses in the future. After signing a policy, your home will be covered under tentative insurance until the inspection is complete.
A home insurance inspection differs from a standard home inspection. A standard home inspection is done by a home inspector near you before you purchase a home. It includes a thorough, top-to-bottom assessment of any issues your home may have. The typical home inspection cost is around $350.
A home insurance inspection, however, is often much less thorough and takes place a couple of weeks after your insurance policy begins. An insurance inspection may even be as simple as an inspector driving past your home and just looking at the exterior.
The inspection will take between 30 to 90 minutes depending on the size of the property and the areas they’re assessing. Your insurance company will let you know if they’re assessing the interior, exterior, or both.
Home insurance inspections are done on a case-by-case basis. Your insurance company will determine whether an inspection is necessary when you’re renewing or obtaining an insurance policy.
Insurance inspections are usually required when:
You live in an older home
You’re switching insurance companies
An inspection hasn’t been done in 10 years
If you try to deny the inspection, the insurance company may cancel your insurance or not renew it.
Knowing what inspectors look for during a home insurance inspection helps you stay ahead of any potential insurance coverage issues. Things like water damage, mold, and pests are all on the inspector’s radar. An inspector’s main priority is looking for problems or damage on your property that will increase the likelihood of you filing an insurance claim.
For example, a crack in your driveway could result in an injury that would be a potential liability claim. They’re assessing that your home’s structure is free from damage like this and that there are no safety risks.
Some things in your home can earn you discounts on your home insurance policy, including:
Having an impact-resistant roof
Installing a security system
Preparing safety systems such as smoke detectors and fire alarms
Having fire sprinklers installed
The inspector will verify that these features are all intact and working correctly to ensure that your home is eligible for these discounts.
Once you know if your insurance company is assessing the interior, exterior, or both areas of your home, start preparing those spots for inspection. Have no fear, there are a few simple steps you can take to prepare that will also help you keep your insurance premium down in cost.
The insurance inspector will check the structure, roof, gutters, siding, windows, doors, and grounds of your property during the exterior inspection.
Begin your preparation for a home insurance inspection on the exterior of your home by:
Checking the roof for debris and replacing missing shingles
Assessing the chimney to fix any cracks or missing bricks
Testing the locks on doors and windows
Checking for any cracks in the foundation and fixing them with a contractor
Checking the siding for mold, rot, or cracks and replacing pieces that are damaged
Making sure your gates are secured
Removing any branches that touch your roof or hang over your house
During an interior inspection, they will focus on the electrical, plumbing, and HVAC systems to check for any safety risks or leaks. They’ll also check the smoke alarms, fire extinguishers, and anti-theft devices to make sure they’re working correctly.
Once you’ve prepared the exterior of your home, begin on the interior by:
Checking the basement for signs of water damage, mold, or mildew and addressing it
Assessing the attic for water damage or pest infestations and cleaning it up
Looking for cracks on the walls and ceilings and fix them
Testing all of your safety equipment including smoke and carbon monoxide detectors
Checking for and repairing any plumbing, electrical, or HVAC issues
Making sure there are no stains surrounding your fireplace that indicate back-drafting
If you come across any of the issues listed above during your preparation, contact a professional contractor to have them fixed prior to the inspection. This will ensure that you don’t run into problems with your insurance policy.
After the home insurance inspection is complete, your inspector will evaluate their findings and determine if there are any changes to your homeowner’s insurance policy. The outcome of the inspection will likely result in:
The insurer continuing your policy without change
The insurer modifying your policy
The insurer canceling your policy
If your inspection went according to plan and no additional liabilities were discovered, congrats! Your insurance policy will continue without change and no repairs are necessary. However, if it turns up that there are issues impacting your insurance policy, you may see modifications to your rate.
If the characteristics of your home do not match what is in the initial policy, or if the replacement cost of certain features is higher than expected, you can expect your rate to increase. On the contrary, if you’ve made significant improvements to your home such as replacing the roof, you may see your rate get lower.
If your insurance company opts to cancel your policy after the inspection, don’t panic. Most often, companies will allow you to fix any major problems within a specific time period. For example, if your home needs a roof replacement they will give you a deadline to have the replacement completed. If you agree to the repairs and have them done before the deadline, the insurance company will not cancel your policy. However, if you don’t provide proof that these repairs have been done, they may choose to send you a notice of cancellation or non-renewal.
Once a company has canceled your insurance policy, it’s possible to apply for a new policy elsewhere. It’s important to find a new insurance company before the policy is officially canceled to prevent having a period where you’re uninsured. The new insurance company will likely complete an inspection themselves, so make sure you complete any repairs prior to the new inspection.
