How to Prepare for a Home Insurance Inspection

Purchasing a home entails completing a long list of tasks, such as obtaining an appraisal and a home inspection. Before you commit to buying a home, take these steps to ensure that it is worth the amount you intend to borrow for it and that it is in good condition. However, a home inspection should not be confused with a home insurance inspection. A home insurance inspection may be required by your homeowners insurance company as a condition of coverage.

What Is a Home Insurance Inspection?

As previously stated, a home insurance inspection is distinct from a standard home inspection. A home inspection is usually scheduled for your own peace of mind. For example, you may want to ensure that there are no major structural issues with the home, such as a cracked foundation or damaged wiring. A certified home inspector can inspect the house from the inside out to look for problems and document them in a report.

Mortgage lenders do not always require home inspections, but they do require an appraisal to determine the property's value. A home insurance inspection is typically not requested by mortgage lenders; rather, it is requested by the company through which you are attempting to purchase homeowners insurance. However, whether you get a regular home inspection, a home insurance inspection, or an appraisal, you must pay the cost yourself.

A home insurance inspection allows the insurance company to estimate the replacement cost of the home. This is also how the insurance company assesses risk in order to determine the likelihood of you having to file a claim for damages and calculates your estimated premium costs. If you're buying an older home or a home in an area prone to natural disasters like hurricanes, earthquakes, or forest fires, a home inspection may be more common.

In Florida and some Gulf Coast states, for example, homeowners can undergo a wind mitigation inspection. This type of inspection specifically looks at what efforts are in place to mitigate wind damage to a covered home. Insurance companies may offer coverage discounts to homeowners who undergo this type of inspection and demonstrate that they have mitigated the risk of wind damage.

What a Home Insurance Inspection Covers

In most cases, your homeowners insurance company will conduct a visual inspection of the exterior of your home. This allows it to inspect the condition of the property's doors, windows, roofing, and other structures. If the insurance company determines that a more thorough inspection is required, it will also look inside the home.

Every inspection is unique, but in general, the inspector will look at things like:

• The roof's condition and age
• Any outside hazards that could cause damage, such as overhanging trees
• Items on the property's exterior that could be damaged, such as sidewalks, lighting fixtures, or separate buildings
• Interior and exterior drainage systems
• The condition of your basement and foundation, if you have one.
• Plumbing systems
• The age and condition of the home’s electrical system
• Home appliances
• The condition of flooring and walls
• Attic spaces and crawl spaces
• Anti-theft measures, such as a home security system or deadbolts
• Smoke and carbon monoxide detectors
• The age and condition of the HVAC system
• Chimneys and fireplaces, if you have them

Overall, the goal is to assess both the risk and the cost of replacement if the house is damaged. If the insurance company only wants to look at the outside, you may not need to be present for the exterior inspection, but you will need to be present for the interior inspection if one is requested. The time limit can be as long as two hours.

How to Prepare for a Home Insurance Inspection

There are some things you can do to prepare for a home insurance inspection if you have one scheduled. By doing some preliminary research, you can identify any issues that are likely to arise during the inspection and avoid being caught off guard.

Preparing for an exterior home insurance inspection:

• Check your roof for any loose or missing shingles.
• If you have gutters, make sure they're properly secured to the house and clear out any debris.
• Examine the foundation for cracks or other signs of deterioration.
• Check your chimney for cracks or loose bricks and consider having it professionally cleaned if you have one.
• Trim any overhanging branches or dead limbs that may pose a risk to the roof or other parts of the house.
• Look for cracks, leaks, and signs of water damage in your siding, doors, and windows.
• Examine the property for any potential hazards, such as an uneven sidewalk that could cause an injury.

Preparing for a home insurance inspection on the inside: 

• Check your smoke and carbon monoxide detectors to ensure they are operational.
• Check the fire extinguisher in your home to ensure it is operational.
• If you have a fireplace, clean it and its flue.
• Inspect the inside of windows and doors for leaks or signs of termite damage.
• Look for signs of water or pest damage in the attic and basement.
• Consider cleaning and testing your HVAC system to ensure it is in good working order.
• Look for leaks under sinks and around faucets, showerheads, and toilets.
• Inspect the walls for cracks or bowing, which could indicate foundation or roof problems.

What to Do if You’re Denied for Home Insurance

If your home insurance inspection reveals serious problems with the property, your insurance company may decide that it is too dangerous to cover you. In that case, you might have a few options.

First, you could make any repairs that the insurance company requires as a condition of coverage. This may entail replacing the roof, the hot water heater, or repaving the driveway.

If that fails, you can seek coverage from a company that specializes in high-risk properties. You'll probably pay more for homeowners insurance than you would normally, but it may be the only way to get coverage for a damaged or structurally deficient home.

A third option is to have the home covered by Fair Access Insurance Plans. FAIR plans are state-run programs that provide insurance or assist high-risk homeowners in finding coverage. If you've exhausted all other options, this could help you get coverage. However, keep in mind that not every state has a FAIR plan.