Learn why you should expect an inspection from your insurance company
Insurance companies may require a home inspection after you’ve moved into your home or when you’re looking to change your coverage.
Home insurance inspections alert the insurance company to maintenance issues, additional risks, and the overall condition of your property.
Insurance inspections range from brief visual assessments to in-depth inspections.
You may know to expect a home inspection to submit to your lender when you’re in the process of buying a house, but did you know your insurance company may require one long after you’re moved in and settled? Insurance companies can conduct a home inspection for various reasons, including to check the condition of the property and ensure you have the appropriate coverage. In some cases, you may not be able to get insurance without an inspection. Learn why your insurance company wants to inspect your house and what to expect from the process.
An insurance home inspection may be as simple as having an adjuster or local home inspector assess and document your property from outside—you may not even be present for the home inspection—but typically, these types of home inspections will also include an interior assessment as well.
If the inspection happens soon after a pre-sale home inspection, it may not be as detailed since the property’s condition will have been recently documented in depth. If you’ve lived in your house for several years since moving in, an insurance inspection is likely to be more comprehensive since things may have changed significantly since the last inspection.
Your insurance company can require an inspection at any time, although it’s most common before taking out a new policy, making changes to an existing policy, if you waived the home inspection before buying, or if you live in an older house that hasn’t been inspected in a long time. The purpose of a home insurance inspection may vary, but there are a few common reasons your insurance company may require one.
Insurance companies want to be certain your policy adequately covers your property, so they may inspect your property to ensure the details match what they have on record and that you have the right policy coverage. It’s also in your best interest for your insurer to have an accurate assessment of your property to ensure you’re covered and compensated correctly if you need to make a claim.
If you live in an older house or one that hasn’t been inspected in more than a few years, your insurance company may want to verify that you’re maintaining the property. A lack of maintenance can lead to damage, and if you make a claim, the insurance company will want evidence that you’ve kept up on all necessary maintenance to try to prevent that damage.
Having an inspection report for your property can protect the insurance company against fraudulent claims. If they have a record of your home’s condition and details, it can verify that your claim is valid and prevent delays in the claims process.
An inspection can identify risks that may not otherwise be apparent to the insurance company. Inspections may reveal additional factors that expose your home to risks from things like natural disasters, floods, tree damage, and more.
"The biggest red flags are structural and foundation issues since they are the most costly and difficult to remediate. Pay attention to the age and condition of big-ticket items like the roof, HVAC, plumbing, and electrical systems. Having to repair or replace any of those items can be very costly."
— Robert Washington, Founder at Savvy Buyers Realty
Unlike when you hire a home inspector for a pre-sale inspection, an insurance inspection may not be a comprehensive, top-to-bottom detailed assessment. Also, unlike a pre-sale inspection, you won’t be responsible for paying for the home inspection. If your insurance company requires an inspection, they’ll cover the home inspection costs. During a home insurance inspection, expect the inspector to check the following:
Exterior: The inspector will look at your roof, siding, foundation, and exterior features to assess the general condition of the property’s exterior.
Interior: They’ll check doors, windows, walls, ceilings and floors to see their condition and identify any potential problems.
System: The inspector will assess the plumbing, electrical, HVAC, and ventilation systems to ensure they’re in working order.
Safety: They’ll check that you have working smoke and carbon monoxide detectors, fire extinguishers, and other safety measures.
Home insurance inspections may vary in how detailed they are. From a cursory visual assessment to an in-depth inspection, the scope of the inspection will largely depend on how much information your insurance company needs.
Insurance companies will often take pictures of your house to confirm property details before issuing a policy or after receiving a claim. The insurance company may keep these photos on hand to compare to later pictures if you make a claim. It’s common for an insurance company to send someone to photograph the exterior of your home and your property without notifying you in advance. However, they’ll need to let you know ahead of time if they need to take interior pictures.
Structural problems with the foundation or roof, water damage, and plumbing or electrical issues are all red flags in a home inspection. These problems can pose serious safety risks and be costly to repair. If a home inspection identifies any serious issues, you’ll want to remedy the problem as quickly as possible to avoid the problem getting any worse.
