An insurance inspection is a process where an insurer evaluates a property to verify its condition and identify potential risks that could lead to a future claim. This assessment helps the insurance company determine the property’s replacement cost and overall insurability. The information gathered allows the provider to make informed decisions about coverage and premiums, ensuring the details on the application are accurate.
Exterior Property Condition
An inspector’s assessment begins by reviewing the building’s exterior, as its condition indicates potential claims. The roof is a focus, with inspectors checking its age and for signs of wear like missing, cracked, or curling shingles. They also examine flashing around chimneys and skylights to ensure it is properly installed and free of gaps that could allow water intrusion.
The evaluation continues with the home’s siding and walls, where inspectors look for bulging siding, cracks in brickwork, or other openings. The foundation is examined for visible cracks or signs of settling that may indicate structural problems. A leaning chimney or cracked exterior steps can also point to foundational issues.
Gutters are checked to ensure they are clean and securely attached, as clogged or broken ones can lead to water damage. The surrounding landscape is also inspected for hazards. Overhanging tree limbs, dead trees, and cracked walkways or stairs are noted as risks for property damage or liability claims.
Interior Systems and Safety
Inside the home, the inspection focuses on major systems. The inspector will assess the heating, ventilation, and air conditioning (HVAC) system, noting its age, signs of deferred maintenance, and overall working condition. This helps determine if the system is at risk of causing fire or water damage.
The plumbing system is reviewed for active leaks, pipe corrosion, or water damage on ceilings and walls. The age and type of plumbing materials are documented, as older materials can be more prone to failure. The water heater is also examined for its age, proper installation, and any evidence of leaks.
The electrical system is also evaluated. The inspector checks the electrical panel for outdated technology, like knob-and-tube wiring, which can be a fire hazard. They also look for signs of overloaded circuits or an improperly maintained panel, and verify the presence and function of smoke and carbon monoxide detectors.
Significant Liability Hazards
Inspectors identify items that increase the risk of injury to others, known as “attractive nuisances.” These are features that might entice a child onto the property, leading to harm and a liability claim. Insurers are concerned about these hazards because they can result in costly lawsuits.
Swimming pools are closely scrutinized. Inspectors verify the pool is enclosed by a fence with a self-latching gate to prevent unauthorized access, as the absence of these features is a concern for insurers. Diving boards and slides may also be noted because they contribute to the risk of injury.
Trampolines are another common concern due to the high incidence of injuries. Insurers may require safety netting and proper anchoring to provide coverage. Playground equipment is assessed for stability and the presence of soft landing surfaces like mulch. The presence of certain dog breeds may also be noted.
What Happens After the Inspection
After the inspection, the insurance company reviews the findings to determine the next steps. If the property is in good condition with no significant risks, the policy will proceed without changes and coverage will be finalized.
If the inspection report identifies issues, the insurer may issue a list of mandatory repairs with a specific deadline, often around 30 days. The homeowner will likely need to provide proof of repair, such as receipts from a licensed contractor, to maintain the policy.
If the risks are significant, the insurance company might increase the premium. In severe cases with major structural issues or unaddressed hazards, the insurer may issue a notice of non-renewal or cancel the policy. This outcome is for homes that do not meet the insurer’s minimum underwriting standards.
How to Prepare for Your Inspection
You can prepare for a smooth inspection by cleaning and decluttering the home. This allows the inspector to move freely, makes their job easier, and demonstrates pride of ownership.
Ensure there is clear and unobstructed access to key areas of the home that the inspector will need to examine closely, including:
- The basement
- The attic
- The electrical panel
- The water heater
Securing pets in a separate room or a crate is also a good idea to ensure the safety of both the inspector and the animal.
Before the inspection, handle any minor and obvious repairs. This includes tasks like replacing batteries in smoke detectors, fixing a leaky faucet, or repairing a broken window lock. Addressing these small issues shows the property is well-maintained and can prevent them from being flagged in the report.