Know these Home Inspection Options Insurance Companies Prefer Without Thinking Twice

Insurance CIO Outlook | Wednesday, November 30, 2022

An insurance company performs a house inspection to determine the likelihood of a claim arising from a property.

FREMONT, CA: Insurance firms check homes to verify the home's replacement cost and to calculate the home's risk appropriately. An insurer can require a home inspection on any property, but older homes and those in disaster-prone areas, are targeted more frequently. An insurer typically orders an inspection during the underwriting process at the policy renewal or when they obtain new coverage. Insurers are required to manage and limit risk. As they still need money to provide the protection they do, they cannot acquire financially hazardous properties. Before issuing a policy, they must also confirm that residence has no pre-existing difficulties. 

Exterior inspection: A carrier can do an outside assessment to verify the home and to build coverage in a policy. Certified home inspectors measure and photograph the outside of the house. Insurance may order an external examination if they've recently renovated. The property's public information may be outdated or missing. If they haven't had an exterior inspection in a decade, their insurer may demand to see it. The provider may also want an exterior check on a new home with minimal information. During an exterior inspection, the inspector will check the house's condition and other structures to ensure accurate policy limitations. They will also inspect for damage or wear and tear.

Interior inspection: Interior inspections are less common yet doable. During an interior inspection, an inspector will almost probably check the attic. They'll prevent ventilation and leaks. They'll look for mold, fire dangers, wall fissures, and more. Some of these conditions might raise premiums or preclude coverage. Home security systems, deadbolt locks, fire alarms, and smoke detectors may help. These can reduce premiums as an older home may need an interior inspection as it may not be up to code. The insurer should contact them in advance for an interior check.

Inspection of wind mitigation: Typically, a wind mitigation inspection is optional. Statutorily, a wind mitigation inspection can save money on insurance rates. It may be the most generous benefit, as it is required by law. Insurance companies conduct wind mitigation examinations to see how well a home can resist hurricane-force winds and wind-driven debris. In certain jurisdictions, typically Atlantic and Gulf coast states that experience storms, insurance carriers will reduce premiums if the home is suitably secured.

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