When do you need INSURANCE INSPECTIONS?
When buying a home, do I need a 4 Point Inspection? Do I need a Wind Mitigation Inspection? Do I
need an Elevation Certificate? My house is new (or recently built) why do I
need an inspection?
These are questions we hear every day in our office.
The truth is homeowners insurance underwriting differs from
company to company. In order to find
you the best rate, we need certain information: age of roof, age of HVAC, water heater,
prior claims, will the home be primary, secondary, or rental, etc. While most questions can be answered by
information from the buyer or homeowner and others can be researched on
property appraiser websites, some require a qualified inspection. Although one insurance company may not
require an inspection, often we are able to place coverage, at a much lower
rate, with a company that does. This is
why in addition to the pre-purchase inspection we also recommend a 4-point
inspection for any home over 20 years old and a wind mitigation inspection for all
homes, even new construction. We do see clients with brand new
construction, where a wind mitigation inspection saved them on insurance
premiums, even though the home was built to the latest codes.
What are these inspections?
·
The 4-point
inspection
A 4-point is typically required on homes
older than 20 years. The insurance company specifically wants information on 4
areas: including the HVAC (Heating, Ventilation and Air Conditioning), electrical
panel and wiring, water heaters including plumbing connections , and the roof.
·
A Uniform
Wind Mitigation Verification Inspection (commonly referred to as a WIND
MIT)
This inspection provides significant
discounts to a homeowner if the home qualifies. Discounts are given for new
roofs, secondary water barriers and hurricane panels/impact glass. The inspection also pays close attention to
the roof/deck attachment, bracing, doors and windows, and other structural
features. A home with superior construction will also receive discounts.
The
state has recently changed the reporting rules making it harder to qualify for
such discounts. A more detailed report
is now required as proof, including photos, to qualify for discounts.
Any
inspection prior to 2012 generally no longer qualifies.
·
Flood
Zone determinations and elevation certificates.
High risk flood zones can be easily
determined in our office with the property address. Once we determine the home
is in a high risk flood zone we then utilize a FEMA elevation certificate to
rate the home for a flood insurance premium. FEMA has
recently changed the rules on primary and secondary homes for rating purposes. As a result, secondary homes may have a
higher flood premium.
I hope that this explanation has been useful in
understanding many of the reasons behind why a certain inspection may be
requested or required, even though it may appear to be an obvious answer. As always, please feel free to contact us
with any questions. Our agents are
always happy to discuss any particular circumstances with you.
Lehn & Vogt
www.lehnandvogt.com
941-698-8877
