What to Expect from a Home Insurance Inspection

It’s common for insurance companies to inspect your property after purchasing a policy or upon future policy renewals. Home insurance inspections are different than pre-purchase inspections. A home insurance inspection is ordered by and paid for by the insurance company. The purpose is to assess the replacement cost of the home and identify any high risks that could cause future insurance claims.

Insurance companies don’t inspect every home. Inspections are more common if you own an older home, a high-value home, or your home is at high risk for losses. Insurance inspections are often done at the beginning of a homeowners insurance policy or at renewals. As a homeowner, if you refuse an insurance inspection, your insurance company could choose to cancel your policy for failure to comply with its policy contract.

Interior inspections

High-value homes usually require both an internal and external home insurance inspection. The inspector will usually call the homeowner directly to schedule the inspection. You must be present for an internal inspection. An insurance inspector will never enter your home without your permission.

The inspector will take photos of the interior of your house. They will check the major home systems and appliances to make sure they are in working order and don’t pose any risks. They will look for fire risks such as non-working smoke detectors or paint being stored next to a combustion source such as a furnace. They will look for existing water damage that may indicate a water leak. The inspector will also measure the square footage of the home, count the bathrooms, and take note of the quality of the home finishes to make sure the home is properly insured to the full replacement cost.

Interior Home Inspection Checklist

• Plumbing systems

• Electrical systems – age and condition

• Home appliances

• Walls and flooring

• Attic spaces and crawl spaces

• Anti-theft systems – such as a home security system

• Smoke and carbon monoxide detectors

• Check for animals – restricted dog breeds

Exterior inspections

If the inspection is only external, you do not need to be home. The inspector will visit the property, take photos of the exterior and look for potential insurance hazards. The inspector will measure the exterior of the home to estimate the square footage and note the exterior construction materials.

They will look for safety hazards such as missing hand railings, trampolines, a pool without a self-latching gate, or dangerous debris piles.  If your home has a deck, they will check to make sure the deck is structurally sound and meets safety codes. In recent years, insurance companies have become more concerned about the age and condition of a home’s roof as older roofs are more prone to wind and hail damage. The inspector will also look for any tree branches that are overhanging the roof or touching the home.

Exterior Home Inspection Checklist

• The roof – age and condition

• Exterior hazards – such as overhanging trees that could lead to damage or missing hand railings

• Exterior property – such as light fixtures or separate structures that could be damaged

• Drainage systems – interior and exterior

• Basement and foundation

• HVAC system – age and condition

• Chimneys and fireplaces

In some cases, an insurance company might provide an option for you to perform a digital home insurance inspection. You can use an app to take photos of the home using a smartphone and submit them directly to the insurance company.

After the inspection

After the inspection is completed, a copy of the home inspection report is sent to the insurance company. If there are any concerns or repairs are requested, your insurance agent will get in touch with you. The most common request that we see is for tree branches to be trimmed. In some cases, the insurance company may request that a tree is removed. Insurance companies may also request the homeowner address maintenance issues such as peeling paint, missing gutters, uneven or crumbling concrete, cracks in the foundation, missing roof shingles, etc. If the roof is in very poor condition, the insurance company may request the homeowner replace the roof to maintain coverage.

If repairs are needed, an insurance company will usually send a letter to the homeowners requesting repairs be made by a certain date. If the homeowner does not comply with the repair request, the insurance company may send a cancellation notice or a non-renewal notice.

Some insurance inspections result in a different replacement cost of the home. If the home is underinsured, the insurance company will usually raise your dwelling limit. This will result in a higher premium. If the home is overinsured, the insurance company may give you the option to lower your coverage. If you or your agent disagree with the inspector’s estimate, you may be able to appeal to an underwriter.

Maintaining your property and having adequate insurance coverage is in your best interest. If your insurance company requests repairs, these improvements will also improve your property and protect the safety of you and your loved ones.

How to pass a home insurance inspection

The best way to ensure you pass your home insurance inspection is to complete routine home maintenance and to fix any issues, such as a leaky roof or cracked foundation, as soon as possible to minimize damage to your home.

It’s also important to let your insurance agent know when you plan to make changes to your home or property, including:

• Home renovations including a new roof or furnace

• New structures on your property (e.g., shed or fence)

• Adding a pool or trampoline

• Adopting a dog – certain breeds are restricted by main insurance companies

These are examples of things that could require additional insurance coverage or put you at risk of being out of compliance with your current home insurance policy. If you ever have questions about your homeowners insurance policy, please reach out to your agent.