During certain real estate purchases, especially those for older houses, an insurer may request a four-point inspection before it will issue a homeowners insurance policy. If you are unfamiliar with this type of inspection, this article goes over the basics of what it entails.
The four components that the four-point inspection includes are the roof, HVAC system, plumbing system, and electrical system. The reason that insurance companies are concerned with the condition of these areas is that they are costly to replace and can cause major damage and safety hazards if they fail. Because this inspection is limited to only these four components, it takes less time and costs less than a full home inspection. However, you should still get a full home inspection of your new home for your own peace of mind.
The Roof is Part of the Four-Point Inspection
The inspector will include the age, materials, and condition of the roof in the four-point inspection report. An insurance company is unlikely to insure an older home if the roof needs to be replaced. The insurance company might require for a new roof to be installed before writing an insurance policy, or may just request repairs.
It is important to have an HVAC system in place to keep the house in good condition. Because of this, an insurance company may require there to be an HVAC system present in order to insure the home. An HVAC system helps prevent mold and helps manage humidity, which protects the materials of the house. If the HVAC system is in poor condition, it can pose various hazards like fire risks and water damage. The HVAC system is the most expensive appliance to replace.
A Four-Point Inspection Looks at the Plumbing
The plumbing system will be inspected during a four-point inspection, including the pipes and fixtures. Polybutylene piping, which was commonly used in the 1980s, is susceptible to bursting, causing water damage and flooding. An insurance provider may refuse to provide insurance for a home with this piping material or omit water damage coverage in the policy.
Issues with the electrical system of a home can be dangerous, posing the risk of a house fire. You rely on homeowners insurance to protect you if your house burns down, which is why the insurance company wants to mitigate this risk by learning about your electrical system first. There are concerns with aluminum electrical wiring that may prevent you from obtaining homeowners insurance.