4-Point Inspection

4-Point Inspections

What Is A 4-Point Inspection?

A 4-point inspection is a type of home inspection that a certified inspector performs to determine a home’s eligibility for insurance coverage. This type of inspection is typically required by insurance companies for homes that are over 20-30 years old. It’s designed to give insurers a better picture of the home’s condition and any potential risks.

The inspection focuses on a home’s four major components and systems: the roof covering, the electrical system, the plumbing system, and the HVAC (Heating, Ventilation, and Air Conditioning) system. Many home insurance companies require a 4-point home inspection before issuing coverage. However, not every home will need a 4-point inspection in order to qualify for home insurance. And while not legally required, it's likely you’ll need to get a 4-point home inspection if you’re trying to insure an older home or building in an area prone to natural disasters. Should issues become apparent during the inspection, your insurer may deny coverage until you can make repairs.

A four-point inspection is a focused examination of the following four systems of a home or building:

1. Roof covering
2. Electrical system
3. Plumbing system
4. HVAC (Heating, Ventilation, and Air Conditioning) system

The Four Systems Included In a 4-Point Inspection

Roof Covering
Type of covering and approximate age and/or remaining service life
Flashings
Vents
Skylights
Roof penetrations
Roof drainage

Electrical System
Service conductors
Service equipment and capacity
Panels and overcurrent protection devices
Service and equipment grounding
Wiring
Switches, receptacles and light fixtures

Plumbing System
Supply, waste and vent piping
Plumbing fixtures
Faucets and drains
Water heating equipment
Functional flow of water supply
Functional drainage at fixtures
Gas piping and connectors

HVAC System
Heating and cooling equipment
Venting systems
Combustion and ventilating air
Energy sources and connections
Condensate drainage
Distribution systems

Why Is My Insurance Company Requiring a 4 Point Inspection?

In general, 4-point inspections aren’t required by law in order to get a home insurance policy. But each insurance company can decide whether it wants its homeowners to have this type of inspection before granting a policy.
Home insurance companies typically only require a 4-point inspection if the home or building is an older one. This is because homes/buildings more than 20-30 years old will have systems that are nearing or at the end of their service life and more likely to break down, which could pose serious hazards. Newer buildings, on the other hand, don’t come with as much risk.

Insurance companies typically require 4 point inspections for several reasons:

Risk Assessment
Helps insurers evaluate the likelihood of future claims
Insurance providers use the inspection to evaluate risk

Determining Insurability
Allows insurers to decide whether to offer coverage
Different insurance agencies have varying standards for what is considered acceptable

Setting Premiums
Information from the inspection may affect insurance rates

Identifying Potential Hazards
Highlights issues that could lead to insurance claims if not addressed

4 Point Inspection Vs. Full Home or Commercial Inspection

It’s important to understand how a 4 point inspection differs from a full home or commercial inspection:

- A 4 point inspection is limited to four systems; full inspection covers entire home or building, including foundational and structural systems
- A 4 point inspection is for insurance; full inspection is for buyer’s information and includes foundation and structure
- A 4 point inspection is less detailed and less inclusive than a full inspection
- A 4 point inspection typically takes 30-60 minutes; full inspection can take 2-3 hours
- A 4 point inspection costs about 25% less on average than a full inspection
- A 4 point inspection report is concise but brief; full inspection report is comprehensive and detailed

Preparing for a 4-point inspection

Preparation for a 4-point home inspection varies, depending on whether you already own the house or are simply in the market and having it evaluated for coverage. If you’re looking to buy, it’s unlikely you’ll be able to prepare anything in advance of the inspection since you’re not the homeowner. But you may be able to work with the seller to fix some known issues in advance.

Any issues you can address and repair ahead of time can help lessen the changes of the home failing inspection. But keep in mind that despite your best efforts to get a home in tip-top shape, the inspector may still find issues that need resolution before a company will insure the house.

Here’s a closer look at some ways to get a house prepared before a 4-point home inspection:

Check the HVAC: Run the home’s air conditioning and heating systems to make sure they’re working correctly. If you find any obvious problems, get them repaired before the inspection.
Check the electrical: Inspect the property for any exposed or ungrounded wires. If you find dangerous or damaged wiring or any other obvious electrical problems, have an electrician make repairs before the inspection.
Check the plumbing: Double-check for signs of leakage, including deteriorating pipes or water-damaged walls. Check under all the sinks for drips or water damage. Call in a plumber to make any needed repairs before the inspection.
Inspect the roof: Check the roof for any signs of obvious leakage and damage. If possible, replace any damaged or broken roof shingles or tiles or have the roof inspected and any needed repairs made by a licensed roofing contractor.

What to do if an insurance provider denies you coverage

If an inspector finds a home’s four key areas need significant repairs, are not in working order, or are unsafe, it’s likely the house will fail a 4-point home inspection. Homes that fail often have an issue with one of the four components that the inspector checks. For example, homes can fail due to the following types of issues:

- Damage to the roof covering or a roof covering in need of replacement
- Outdated electrical systems that include defective equipment panels or aluminum or knob-and-tube wiring
- Polybutylene water piping or other major plumbing issues
- Nonfunctional or missing HVAC systems

The insurance company will usually consider a home that fails a 4-point inspection to be uninsurable. This could lead to the insurer denying or canceling the homeowners policy. But you may still be able to find an insurance company that’ll agree to issue a policy if you make repairs in a timely manner, usually within 30 days or another predetermined window of time.

Some instances that could cause a failed inspection, like questionable wiring, may not require any repairs. Instead, the insurer may ask to have an electrician inspect the wires.

If the inspector finds issues that an insurer can exclude from coverage, an insurer might issue a policy with exceptions. If the company denies coverage because of a failed inspection, the homeowner can always check with another company to see if it would cover the home.

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