Summary: A home insurance company may want to inspect your home when you’re enrolling in coverage to help manage its risk. While you can refuse an inspection, it’s best to maintain your property and undergo the process. Furthermore, preparing for a home insurance inspection can help you pass and streamline the process. Estimated Read Time: 5 mins
Homeowners insurance carriers work to manage risk to remain financially strong. Here are a few reasons you may need to have an inspection for home insurance purposes:
- General risk assessment for your home that may uncover potential hazards.
- To manage risk, underwriting may determine an inspection is necessary. This can affect how much you pay for premiums.
- Home insurance inspections may occur to verify the details in your application. Some policies have specific conditions that also need to be verified.
- Finally, loss prevention to help prevent future claims and promote proactive measures for protection is another common reason for an inspection.
How Often Do Insurance Companies Inspect Homes?
Insurance inspections are common when purchasing older or high-value homes or when they are located in disaster-prone areas dealing with perils, such as wildfires or hurricanes. An insurance inspector is typically going to assess your home at the start of a new policy or during renewals.
A home insurance inspection can help assess replacement costs and risks, impacting your premiums. Unlike full home inspections for buyers, insurance inspections are less extensive and vary case by case.
Can I Refuse a Home Insurance Inspection?
Declining a home insurance inspection in Texas can hinder your ability to secure coverage, especially if your property poses challenges for traditional insurers. Fortunately, the Texas Department of Insurance (TDI) provides a Voluntary Inspection Program.
This program allows homeowners to seek a “certificate of insurability,” offering a viable solution to address coverage concerns. Receiving the certificate allows protections for homeowners including the following:
- Carriers are prohibited from denying or renewing policies solely based on home condition unless they conduct a subsequent inspection and provide written documentation of identified issues.
- The certificate is valid for three years unless significant property alterations make a possible reevaluation and additional inspection necessary.
However, while the certificate of insurability is available, there are standards that each property owner must maintain, including:
- You must maintain the property, resolve damage, and prevent an accumulation of debris or waste on the property. You also can’t have insect damage or infestation from termites.
- Electrical, plumbing, heating, and cooling systems must be in working order.
- Your roof must not have holes, cracks, deterioration, missing shingles, etc.
- Features such as swimming pools, trampolines, swing sets, and more cannot be unfenced.
- Space heaters and hot water heaters must have ventilation and be safely positioned from walls and furnishings.
- The home must be accessible for firefighters and their equipment.
The cost of using a Voluntary Inspection Program inspector will vary from year to year and will be $144.93 in 2023. Follow-ups are an additional $72.45 and inspectors might also charge for mileage at a maximum rate allowed by the IRS for businesses.
How To Prepare for Home Insurance Inspection
Being prepared for a home insurance inspection can help you not only pass but ask the right questions and get the right information during the process. Although they aren’t an every day occurrence, here are a few steps that homeowners will need to be aware of before an inspection:
Review and Repair
Before your home insurance inspection, review your policy. Repair visible damage like leaky faucets, damaged roofs, or cracked windows, and clean both inside and outside your home.
Ensure your home’s safety features like smoke detectors, carbon monoxide detectors, fire extinguishers, and security systems are in working order.
You’ll also want to consider updating outdated electrical or plumbing systems to modern standards for potential discounts and to pass inspections.
Gather Your Documents and Questions
Compiling essential documents related to your home, such as renovation records, receipts for recent upgrades, and maintenance records is critical. Having your documentation on hand can support your claims during the inspection.
You should also be ready to ask questions about the inspection process and how it may impact your insurance coverage and premiums. Understanding what the inspector is looking for can help you address any concerns beforehand.
Show Up and Follow Up
Finally, it’s recommended that homeowners are present during an inspection whenever possible.
Your presence allows you to address any questions the home insurance inspector may have and to ensure they have access to all areas of your home.
Following the home inspection, you’ll also want to promptly follow up with your insurance provider.
During this time, you’ll want to review the results and consider any potential adjustments to your policy or premiums based on these findings.
By actively participating in the inspection process and promptly addressing any necessary follow-up actions, you can ensure that your property meets your carrier’s requirements.
Moreover, this proactive approach may even qualify you for lower premiums for your homeowners insurance coverage.
What Will Fail a Home Insurance Inspection?
A home insurance inspection assesses risks linked to the property, including foundation cracks, roofing wear, plumbing leaks, and electrical hazards. Other concerns may involve clogged gutters, window damage, attic issues, and potential mold or termite problems.
Neglecting inspection findings can result in costly damage and safety risks over time. However, failing one altogether can depend on the carrier you enroll with, the severity of the issues found with your home, and individual home factors like age and location.
Nonstandard home insurance carriers might insure your property if you refuse an inspection and have difficulty finding coverage through other means. However, you should be prepared to pay an elevated premium as a result.
If you have failed a home insurance inspection, the best thing you can do is get your home in good standing to pass. You can also compare carriers to find the right company for your home’s needs.
Sources:
1. Voluntary Inspection Program, TDI. Accessed February 2024. https://www.tdi.texas.gov/consumer/voluntary-inspection-program.html