Concerned about home inspection required for homeowner's insurance

[muzician21]

I'm in Florida. My homeowner's provider - Metlife - is non-renewing my policy, apparently pulling out of the state after the 2004 hurricanes.

I just signed up with a policy through an independent agency with a company called Security First. After first being advised it won't require what they're calling a four-point inspection, now they're saying it will. That's an issue unto itself but...

There are some issues with the interior of the house - I've got some of the tile pulled away in a shower stall that had some water seepage, one wall in master bed with the sheet rock removed where I repaired some carpenter ant damage. Also some holes in the sheet rock in the garage - one where I knocked it away to determine where a leak was coming from. Turned out it was just the hot water tank, also a couple of other spots where I cut out a section of sheet rock to inspect for other carpenter ant damage.

Could this be an issue? Should I scramble to patch these things up before the inspection or is it not a concern? Otherwise the house is in decent shape. Just had a new roof (shingles and paper) put on after the hurricanes.

What I'm also concerned with is this turning into some kind of extortion/scam - where they "find" problems that they claim need fixing and oh, they just happen to know someone who will do the work, knowing I have to have a thumbs up to get insurance coverage.

Any thoughts, experience with this kind of thing? My recent experiences with insurance agencies being less than forthright about some things haven't served to raise my opinion of the industry.

[JoeSpareBedroom]

I would make it look like all three things are in the process of being fixed. This may sound funny, but put out objects which would convince your wife that you really were working on this stuff while she was grocery shopping, when in fact you were watching TV. Tools, rulers, pieces of sheetrock, you know what I mean. If the inspector has any issues, you have leverage. Tell the insurance agent you're going somewhere else with your MONEY.

[Edwin Pawlowski]

Certainly can't hurt to fix them. Every house has problems and you can find some fault. Garage or not, there is not much excuse to have holes in the wall long term. If the inspector is a pro and realistic, he is not going to bounce you for making normal maintenance type repairs. Fixing hoes in the bedroom keeps the wife happy also.

[Richard J Kinch]

What are the 4 points?

Maybe they're looking for liability issues (unfenced pool, etc), not physical damage?

[Kurt Ullman]

Didn't seem to work for Gov. Spitzer.

Kurt (The Fates will get for that one....)

[hallerb]

exact same thing happened to a couple different friends a few years ago in pittsburgh, both of which had a homeowners company who went out of business, new company sent inspectors.

the one couple needed a new roof, new front porch deck boards rotted, cracked sidewalks needed replaced, home had K&T (knob and tube wiring), plus some other minor issues. They didnt have money to fix all this :( their homeowners insurance was cancelled. They were unable to find another company K&T was a deal breaker. with no homeowners the mortage company got them forced place insurance, it covered JUST the structure and cost 8 times what their previous insurance did that covered everything. made paying mortage tough. about 6 months later it sucked, they had a home fire after a cat knocked over a lamp. the structure loss was over 135 grand, they had NO coverage for living expenses, homes contents etc. They HAD to pay a mortage on a un livable home and the insurance company was terrible to deal with. They lived with us for 7 months and didnt get back in the home for almost 2 years.

our other friend also had K&T had to get a complete home rewire, including service entrance cause he had fuses, they wouldnt insure homes with fuses any more, railing on his front steps, sidewalk repairs, new roof on a porch and some minor clean up. they even harassed him cause he had some building materials stored under a porch, stating it was a fire hazard. he had all the work done, he didnt have a mortage but wanted insurance, it cost him a big chunk of his retirement about 15 grand. sadly he died of a heart attack a few months later

neither home was in a bad neighborhood, but both were older homes. it wasnt redlining, the company going out of business effected homes all over the pittsburgh area and was a featured news story.

I wish you well it can be a terrible time.

posters here have repeatedly denied this sort of thing goes on, you verify what i have been posting for years. please let us know how it goes.

basically insurance companies only want good risks, who are unlikely to have a claim.

[hallerb]

Four-Point Insurance Inspection

A Four-Point Inspection (4-point insurance inspection) is typically performed for a homeowner when requested by their insurance company; often a requirement when a homeowner is obtaining a new insurance policy or renewing an existing policy.

A Four-Point Insurance Inspection is not standard "Home Inspection" in scope and depth. The Inspection includes a limited scope evaluation of the roof surface covering, electrical system, central air conditioning

- heating system, and plumbing system.

Insurance companies are typically concerned that the systems are currently in satisfactory functional condition and are not "antiquated" (at or past their expected useful service life).

The Insurance company will typically require that the inspections be performed by suitably qualified persons. A State of Florida licensed and ICC (International Code Council) Certified Residential Building, Electrical, Plumbing and Mechanical Code Inspector performs all inspections, therefore we are able to provide the various insurance related inspections that are required.

--------------------------------------------------------------------------------

[hallerb]

I would get into over drive and fix everything you can, make certain the home is clean and well organized, nothing that looks like a hazard. be prepared to spend some money because the alternative forced place insurance can cost far more.

let us know how this all turns out. the better the overall appearance the less likely you will have a hassle

[Jeff]

Google yields this on 4 point inspections:

The Four Point Insurance Inspection consists of a visual survey of the following four primary components:

1. Roof 2. Electrical 3. HVAC System 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 criteria used to judge the components include:

• Current operating conditions * Scheduled maintenance requirements * Expected service life

Why worry about anything else, they aren't.

Jeff

[trader4]

I don't see why you would worry about this. You don't even have a policy with them. If they fail anything, you can choose whether to fix it or not and if so who you choose is entirely up to you.

As for concern about passing the inspection, I'd say it's hard to say. For example they could have a basic reqt that the house has to be CO worthy. I think missing sheetrock in the bedroom probably means it's not. Worse case they may squak about something. Then you can fix it or try another company.

text -

[hallerb]

=BD Then you

You dont get it, if their home doesnt pass inspection not only will this company not insure them but no company will. Apparently like credit reporting the info is shared on a national database of some type......

Try to fix everything you can before the inspector comes.

or they might fail some stuff and jack up your rates a lot, in florida they are already sky high

[hallerb]

=BF=BD Then you

please let us know what you decide to do and how it all turns out

[gfretwell]

Obvoiusly not a Florida person. Our insurance is more like $2500 for $100,000 coverage and the "windstorm" will have a $6000 deductible.

[trader4]

=BF=BD Then you

Hmmm, they won't ever be able to get insurance again? It seems a lot more likely to me that if the insurance company inspection finds some problem of the nature mentioned, ie, some missing drywall, they will say they will insure the property provided it is fixed. Perfectly normal.

Now, personally, I'd fix the obvious stuff that needs fixing first just to avoid any hassles.

[hallerb]

=EF=BF=BD Then you

what i meant is that with any of a long list of supposed troubles they will be unable to get any company to insure them unless its all fixed.....

yep fix everything you can and be prepared to meet their rules. or no homeowners

[muzician21]

Guy came out, took pics of the front/rear of the house. Looked under the sinks, looked at the water heater - literally looked at it, in no way tested its functionality, commented that it looked new, asked if it was installed this year or last year. Looked at the celings.

I was advised he'd be checking the outlets in the kitchen & bathroom, he never did. Got some info off the plate on the A/C compressor, shined a flashlight down into it, didn't even look at the air handler. Looked at the main breaker outside the house, asked me how old it was - it's the original from when the house was built.

Didn't seem to even care about the repairs in progress. I had the curtain closed in the shower stall that's torn apart, he never even looked at it. I also wondered if he'd say anything about the sound booth (for recording) I'd constructed in one bedroom that takes up about 80% of the room. He mentioned that an electrician signs off on the inspections. Interesting since the electrician who signs off on them never actually sees the house.

$100. Normally $75 but an extra $25 for coming out on a day they're not normally in my area.

A wind mitigation inspection is $125 which I imagine is basically arbitrary since they really push that I can save "up to" 40% of the wind damage portion of the premium. I wonder how much savings I'd see though with a house built to '88 code.

Also won't see much savings if the carrier bails out of the state in a year and have to go through the whole process again.