An insurance inspection helps a home insurance company evaluate risk factors associated with your home. This helps the insurance company accurately price your policy premium. So, what do insurance home inspectors look for? Typically, an inspector will examine your roof, HVAC, plumbing and electrical systems.
What is a home insurance inspection?
A homeowners insurance inspection helps an insurance company determine risk factors associated with a home. The better an insurance company understands your home, the more accurate your insurance policy premium can be. In general, home insurance inspectors will look at your plumbing, HVAC, electrical systems and roof for signs of damage that could pose a safety risk.
During an inspection, the inspector may need to enter your home to make sure your electrical or plumbing systems work as they should. They may also need to take photos and measurements of your home. The results of the inspection may determine whether you can get a homeowners insurance policy or maintain your existing policy.
When do home insurance inspections take place?
An insurer may conduct a home insurance inspection in these scenarios:
You are buying a home
you are switching home insurance companies
You live in an older home (typically, more than 40 years old)
A home inspection hasn't been completed in 10 years or more
How should I prepare for an inspection?
Before your home insurance inspection, gather any documents with relevant information about your home. Examples include floor plans with square footage and any renovation or repair paperwork. You can also prepare for the inspection by inspecting the home yourself. Consider taking these steps:
| Preparing the Inside | Preparing the Outside |
| Look for signs of water damage, especially in your basement | Clear your yard of all obstacles so the inspector can access your property |
| Remove clutter under sinks and in your basement | Look for any exterior damage (siding, roof, etc.) and fix |
| Check pipes, toilets, walls and ceilings for leaks | Arrange for any overhanging branches to be removed |
| Tidy things up as much as possible | Make sure your gutters are free of debris |
Types of home inspections
There are a few different types of home inspection:
- Insurance inspection
- Buyer’s inspection
- Seller’s inspection
Insurance Inspection
As we’ve already discussed, a home insurance inspection helps an insurer evaluate risk to price a home insurance policy. Among other areas, an inspector will examine your home’s roof, HVAC, plumbing and electrical system. These are the most important parts of your house that an insurance company will want to check.
Buyer’s Inspection
Home inspections are also conducted when buying a home. This kind of inspection is not done for insurance purposes. Before you close on a home, you should hire a licensed inspector to give the property a detailed top-to-bottom inspection. They’ll thoroughly inspect every aspect of the home to make sure you’re fully aware of all potential issues.
Seller’s Inspection
Property appraisals are conducted to estimate the value of a property. This kind of inspection is commonly done when selling a home.
Key areas of inspection
A home insurance inspector may be sent out to inspect the exterior, the interior or all aspects of your property. If you’re moving into a new home, chances are that only an exterior inspection is needed. If it’s an older home, however, your insurance company may want the home inspector to check out the inside as well.
Here are some key areas an inspector could evaluate:
| Interior of Home | Exterior of Home |
| Basement, attic, crawlspaces | Age and condition of roof |
| Plumbing systems | Drainage systems, such as gutters |
| Electrical systems | Foundation |
| HVAC systems | Driveway, walkways |
| Fire alarms and carbon monoxide detectors | Chimney |
| Safety features and security systems | Overhanging tree branches |
Exterior inspections
Often with newer houses, an inspector will only perform a brief exterior inspection to make sure everything is as expected. Since the inspector doesn’t need to enter the house, you don’t even need to be there. In some cases, you might not even know they’re coming. Here’s a brief checklist of things they could look for:
- Foundation – An inspector will look for signs of damage like bowed walls or cracks in the concrete.
- Roofing condition – A roof in poor condition can quickly lead to all sorts of costly damage. An inspector will pay special attention to any wear and tear.
- Paint and siding – Bubbling paint or warped siding can be a sign of deeper damage.
- Gutters – Clogged or damaged gutters can cause water to pool where it shouldn’t, leading to foundation damage.
- Driveways and walkways – You could be liable for injuries that occur on your property, so maintaining safe driveways and walkways is your responsibility.
- Surrounding branches – Branches that hang over your home could damage your roof if they fall. They can also serve as a pathway for pests to enter your home.
Oftentimes, the inspector will simply walk around your home, take photos and complete their report on their own time. If this happens, you should find a notification on your door that they have completed the inspection.
Interior inspections
If your home insurance company wants to perform an interior inspection, the inspector will contact you to schedule one. You must be home for an interior inspection. Also, these inspections typically take longer than exterior-only inspections, because there’s much more to examine. Here’s are some things they usually examine:
- HVAC – The inspector will make sure that your heating and cooling systems are working correctly and there are no leaks.
- Electrical – Your home’s electrical system, including the panel and all wiring, must be working and up to code to pass inspection.
- Plumbing – When examining your plumbing, the inspector will check your supply and drain lines for leaks and other damage.
- General safety and maintenance – An inspector may also check your home for general maintenance and safety. This could include things like floorboards, stair treads and handrails.
Keep in mind that a home inspector won’t enter your house without your permission. Therefore, if you’re not home at the scheduled inspection time, your insurance company may issue a cancellation or choose not to renew your home insurance policy.
What to expect after a home insurance inspection
After an inspection, the inspector will leave and report their findings. You or your insurance agent may receive a copy of their report when it’s completed. If there are any concerns, your insurer will reach out to you.
Your home insurer will then either begin your home policy or continue your current one. You may even see a decrease in your existing policy premium if you’ve made significant home improvements. On the other hand, the inspector can give your home a failing grade if it does not meet certain safety criteria.
What could happen to my insurance if there’s an issue with my home inspection?
If your home fails the insurance inspection, your insurer may give you time to make the necessary improvements. If you fix the problem areas, you may be able to keep your coverage with that company.
In a worst-case scenario, your homeowners insurance provider may cancel your coverage altogether. If this happens, you should try to replace your insurance coverage as soon as possible, especially if you have a mortgage. If no company will cover you, you can apply for a state-subsidized FAIR plan. These plans are specifically designed to protect homeowners with tricky properties.
