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Naples, Cape Coral, Fort Myers, Lee & Collier Counties
4-Point Inspections
About The
Program
The Four Point
Insurance Inspection was created after Hurricane Andrew struck Florida in
1992. It is performed on behalf of the insurance companies and,
typically, as a requirement for the insurer offering insurance to the new
homeowner. After last year's barrage of hurricanes in Florida, the Four
Point Insurance Inspection has taken on added importance. As insurance
companies are beginning to see the benefit of the inspection, the program
is spreading to other areas of the country. The benefit to the insurance
company is, obviously, reduced loss risk on homeowners
insurance policies. This is an area of business that has, for many years,
been a money loser for insurance companies.
In 2002, the
Florida Legislature passed a law that combined the Florida Residential
Property and Casualty Joint Underwriting Association (FRPCJUA) and the
Florida Windstorm Underwriting Association (FWUA). This resulted in the
creation of Citizens Property insurance Corporation (Citizens), which
more efficiently and effectively provides insurance to, and serves the
needs of, homeowners in high-risk areas and others who cannot find
coverage in the open, private insurance market. By law Citizens insurance
must be the most expensive insurance policy on the market. It is funded
by premiums paid by the insured and from other insurance companies paying
into the program to reduce their overall losses.
While the four
point insurance inspections were started by Citizens, they have quickly
spread to most, if not all of the insurance companies that provide
coverage in Florida. Several insurance agencies in the Alachua county
area have been recommending the 4 point inspection for some time now.
The Four Point
Insurance Inspection consists of a visual survey of the following four
primary components:
1. Roof
2. Electrical
3. HVAC (Heat, Ventilation & Air
Conditioning)
4. Plumbing
The insurance
companies are expecting the condition of the components listed above to
be working as intended within the manufacturer's specifications. The
insurance companies are looking for the four systems to be in generally
good working condition and fulfilling their intended function. If the
home is an older home the insurance companies want to see that the
systems have been updated. In most cases, the forms are provided by the
insurance companies to their clients. The clients then ask the inspector
to fill the form out during the course of the home inspection.
The criteria used
to judge the components include:
1. Current operating conditions
2. Scheduled maintenance requirements
3. Expected service life
There are other
types of specialized programs that are similar in nature to this type of
inspection and may exist in specific markets. For example, some states
require low income buyers to obtain an inspection of a home prior to
purchase to obtain a low interest loan. In Missouri, for example, the
Missouri Housing Development Corporation (MHDC) has an inspection
requirement that is similar to a Four Point Insurance Inspection. Another
example would be in California where many homeowner insurance companies
require verification of foundation attachment for homes built prior to
1965.
Frequently Ask
Questions
Why do I need a
four point inspection?
Insurance
companies have become increasingly reluctant to issue Homeowner Insurance
Policies on older homes (usually 25 years old or more). Their common
concern is that there may be conditions in an older home that could
become a liability to them. For instance; a home with a roof nearing the
end of its reliable service life may fail while under the policy and the
homeowner may seek reimbursement from their insurance company for damages
to the home or its contents. Similar concerns extend to the condition of
the HVAC, electrical and plumbing systems in an older home. If these
elements are in poor condition, in need of being updated or replaced or
were improperly installed, they may fail and cause fire or water damage
to a home.
Newer homes are
assumed (by the insurance companies) to not have these problems as
frequently as older homes.
Is there a
standard form to fill out?
There is no
industry wide standard form for a Four Point Inspection. Some insurance
companies provide their own forms; however, most insurance companies will
accept forms from companies that perform home inspections provided that
they are filled out by qualified individuals.
Can I fill out the
form myself?
Insurance
companies want these forms filled out by certain qualified individuals
such as a licensed Professional Engineer, Electrician, General or Roofing
Contractor, Certified Home Inspector or an ICC Certified Inspector.
I am buying a
home. Can I use this as a less expensive pre purchase home inspection?
No. This four
point inspection is not intended for use as a pre-sale or pre purchase
comprehensive inspection. As it is geared for your insurance needs, The
Four point inspection will not contain the type of information you may
need to make an informed decision for purchase.
I had a home
inspection before I purchased the home. Can I use that report instead of
getting a Four Point Inspection Report?
The insurance
companies do not want large reports that contain other information. They
want only specific information about the HVAC, plumbing, electrical
system and roof in a short one or two page signed document.
Costs,
Coordinating all these Trades Professionals for a 4 point Inspection
sounds Costly and lengthy.
Eagle Eye Home
Inspectors are in tune with these systems and our professionals in the
inspection business to offer the four point inspection at a discounted
rate. If you hired all four trades to perform the inspection, it would
get very expensive. We have also streamlined forms to satisfy most
interests of insurance companies quickly and cost effectively to offer
the four point inspection.
Guarantees, Who
can Guarantee the four point inspection forms
enable me to be approved for Insurance?
NOTE: Please be
clear that Eagle Eye Home Inspection, LLC is not employed by Insurance
companies, and cannot guarantee any aspect of the four point inspection,
including but not limited to: INSURABILITY, UNDERWRITING, NEED FOR
ADDITIONAL CERTIFICATION OR INSPECTIONS SUBSEQUENT TO INITIAL INSPECTION,
WORK TO BE PERFORMED FOLLOWING INSPECTION, Etc.
In summary, the
Four Point Insurance Inspection program is gaining in popularity and will
likely continue to expand as the insurance companies recognize the value
of the inspection and the savings benefits it provides to the insurance
carrier. Eagle Eye Home Inspection, LLC is proud to offer four point
insurance inspections as part of our full line of inspection services.
» Request A 4-Point
Insurance Inspection
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