Predicting The Future Of Insurance Inspection Requirements
Insurance companies generally require a home inspection before granting insurance coverage to manage liability and risks. They like to avoid and be aware of the risk, and inspections are an accurate way of doing this. A home inspection can help them avoid potential losses for liabilities that aren’t listed on the initial application. To further reduce their risks, they are dropping policies at an alarming rate and increasing premiums. In addition, they are rapidly becoming more stringent with inspection requirements, likely related to an overabundance of claims for main home systems such as roofs, plumbing, electrical, etc.
At Robbins Services Home Inspection Company, we have heard that some insurance companies now require ten years of expected life in a roof before they write a policy for the home, leaving many homeowners liable to change their roofs earlier than expected. With all these changes, you may begin to feel a little overwhelmed and confused. But fret not! As long as you remain updated, you will be able to stay on top of the situation and meet the requirements of your home insurance company.
To help you determine which trends in insurance inspection you need to focus on, we have put forth our professional predictions and explained how they would affect you.
1. The requirements for approval may become more stringent
We predict that due to the new insurance policies, the requirements for approval may become more stringent. There will be a need to provide proof of new roof installations and repairs, updated electrical and plumbing systems, etc. All this will be done to ensure that the home you are buying is up to the mark and goes with the code of the state. Also, this helps the insurance company avoid scam insurance claims and facing liability.
2. You will be required to provide more documentation
It will not be surprising if the current four-point inspection form changes over the next year, requiring more information and documentation to pass inspections such as full exterior and attic inspections. This would likely drive the average cost of this inspection up as well. Insurance companies commonly ask for more images and information than the form currently requires, such as water heater details and pictures of pools and trampolines. They do this to avoid unnecessary liability. However, we believe that provisions will be made to incorporate them as a necessity rather than something they just do.
3. There may be strong insurance policy changes
There are definitely going to be substantial policy changes related to prorated rates for building materials based on product life. This could reduce the likelihood of an insurance company paying a claim at 100% replacement value for a twenty-three-year-old roof when the roofing materials are only expected to last twenty-five years. You will also need to ensure that your roof is compliant and up to the standards. Making sure they strengthen their insurance policies is their way of ensuring that they just don’t go around providing insurance to people who are just looking to make a quick false insurance claim. But, at the same time, you need to be aware of this to ensure you make the right investment decisions for yourself.
How will these predictions affect you?
These changes would certainly reduce the liability of insurance companies, meanwhile making it harder and more costly to obtain homeowners insurance. Inspections may be required more often and for properties that did not need them in the past. This would also drive up the average cost of home inspections. As home inspectors, we will be required to have additional training, increased inspection times, and staff to deal with an influx of insurance inspections. Our business could use this time to expand its services to regions where these inspections will be required. And, overall, our industry could see expansion and growth. Unfortunately, homeowners like you will likely experience increased home maintenance costs. But the cost for insuring your house is worth all this extra time, effort, and money as, in the long run, you need to protect your assets.
If you are looking for certified home inspectors in Palm Harbor, FL, then reach out to us at Robbins Services Home Inspection Company. Our inspectors are equipped with the most high-tech reporting software and tools such as moisture meters, infrared cameras, and metal detectors. Their advanced training combined with their high-tech tool belt allows for a thorough evaluation of your property and the ability to identify hidden defects others may overlook. Our reports are written in an easy-to-read format and equipped with a defects summary so that items can be easily compiled into repair requests. All our inspectors are licensed by the State of Florida and are fully insured with both General Liability (GL) and Errors and Omissions (E&O) insurance policies. Visit our website to learn more or contact Robbins Services Home Inspection Company today!