What is a Four-Point Inspection?
A four-point inspection is a limited home inspection that looks at just four areas: HVAC (heating, ventilation, and air conditioning), electrical, plumbing, and the roof. It’s often used to determine if a home is insurable, particularly older homes.
Why are these inspections important? Insurance companies use them to assess the risk involved in insuring a property. These inspections also help homeowners spot potential problems early and prevent expensive repairs down the road. Keep reading to learn more about what a four point inspection entails.
The purpose of a four-point inspection: Insurance and risk assessment
Four-point inspections are often required by insurance companies because they’re concerned about the condition of older homes. A home inspection is a visual snapshot of the home’s current condition, and the four-point variety focuses on the systems that tend to cause the most problems.
Insurance company concerns
Insurance companies are often wary of insuring older homes—typically those 25 years or older—because older systems are more likely to fail. These systems may also be out of compliance with current building codes, which could create safety risks and increase the chances of a claim.
Four-point inspections help insurance companies assess the condition of these critical systems to determine whether they meet their underwriting guidelines.
When are four-point inspections required?
You may be asked to get a four-point inspection when you’re applying for a new homeowner’s insurance policy, particularly if you’re buying an older home. They may also be required when you renew an existing policy, especially if the home is getting older or has been updated in any significant way.
Four-point inspections are also common during real estate transactions because they give valuable information to both buyers and sellers.
What does a four-point inspection cover?
A four-point inspection takes a close look at four essential systems in a home. Here’s what inspectors typically check:
Roof
- Visual assessment. Inspectors will check for missing, damaged, or worn shingles, plus any signs of leaks, water damage, or general wear and tear.
- Age and condition. Because most roofs last around 20 years, the roof’s age is a key factor.
- Gutters and drainage. Inspectors will check gutters and downspouts to make sure they’re draining properly and keeping water away from the house.
Electrical system
- Wiring and panels. Inspectors check the wiring and look for outdated or unsafe types like knob-and-tube. They’ll also check the electrical panel to make sure it’s labeled properly, rust-free, undamaged, and has enough capacity.
- Safety hazards. Inspectors look for exposed wiring, bad outlets, and other electrical hazards.
- Functionality. They’ll make sure switches and outlets work as they should.
Plumbing system
- Leaks and water damage. Inspectors check for leaks around sinks, toilets, showers, and other fixtures. They also look for signs of water damage like stains, mold, and bubbling paint.
- Pipe materials. They’ll assess the type of plumbing pipes being used, because some older materials are prone to failing.
- Water heater. The water heater gets checked for leaks, rust, and whether it’s working correctly.
HVAC system
- Functionality and condition. Inspectors will run the heating and cooling systems to make sure they’re working. They’ll look for wear and tear, leaks, and unusual noises.
- Age and efficiency. The age of the HVAC system matters, because older systems are often less efficient and more likely to break down.
- Maintenance. Inspectors might check for things like clean filters and clear vents.
How to prepare for a four-point inspection
A little preparation can help ensure a smooth four-point inspection. Here’s what you can do:
- Make sure everything is accessible. The inspector will need to get to the roof, electrical panel, plumbing, and HVAC unit without any trouble. Clear away anything blocking these areas.
- Gather your paperwork. Have receipts for any repairs, maintenance records, and warranty information handy.
- Tell the inspector about any problems. Let them know about any concerns or issues you’ve noticed with the systems.
- Do some basic maintenance. Change your air filters, clean out your gutters, and fix any small leaks you’ve been meaning to get to.
You should also do a quick check of each system:
- Run your AC to make sure it’s working.
- Look for any signs of water damage.
- Inspect your roof for missing shingles or leaks.
- Check for any electrical hazards, like exposed wires.
Four-Point Inspections vs. Other Types of Home Inspections
A four-point inspection is more limited than other types of home inspections. Here’s how it compares to other common inspections:
Four-Point vs. Comprehensive Home Inspection
- Scope: A four-point inspection only looks at those four key systems. A comprehensive home inspection looks at everything from the foundation to the roof.
- Purpose: Insurance companies order four-point inspections. Homebuyers typically order comprehensive home inspections to get a sense of a home’s condition before they buy it.
- Cost and Time: Four-point inspections are faster and cheaper than comprehensive inspections.
Four-Point vs. Wind Mitigation Inspection
- Purpose: A four-point inspection tells the insurance company about the condition of your home’s vital systems. A wind mitigation inspection looks for features that will protect your home from wind damage during a storm. If your home has these features, you may qualify for lower insurance rates.
Cost and things to consider
A four-point inspection usually costs somewhere between $50 and $175, and the homeowner typically pays for it.
These inspections are more common in coastal states like Florida. Because these areas are prone to weather damage and frequently update their building codes, insurance companies want to be sure that older homes are up to par before they offer coverage. If you live in one of these areas, you may be required to have a four-point inspection to get homeowner’s insurance.
In Summary
A four-point inspection can provide peace of mind for both homeowners and insurance companies. By identifying potential problems early, these inspections can help keep small issues from turning into big, expensive problems.
For homeowners, a four-point inspection can save money on insurance premiums and prevent costly repairs down the road. It’s also a great way to gain valuable insights into your home’s condition, so you can make informed decisions about maintenance and insurance coverage.