Your Home Inspection FAQs Answered
Reading time • 5 minutes
By Matic
When you buy a new homeowners insurance policy, chances are the insurance company will conduct a home inspection shortly after. They do this as a way of assessing risk, and their findings could affect the premiums you pay to keep your policy active.
It may sound daunting, but these types of home inspections are usually less involved than an inspection that happens during a home sale. Here’s a closer look at how they work, why they happen, and potential next steps if your inspection uncovers any issues with your home.
Why do insurance companies conduct home inspections?
By conducting an inspection, insurance companies can get a feel for how risky it’s going to be to insure your home. They’re typically looking for anything that could make you more likely to file a future insurance claim. If they come across something significant, like damage to the foundation or roof, you can expect them to request the necessary repairs.
A home insurance inspection can also help your insurer estimate your home’s replacement cost. This is the amount it will cost to rebuild your home from the ground up if it’s destroyed in a covered event. The insurance company will also consider the results of the home inspection when determining your premium.
What happens during a home inspection
You probably went through an inspection process when you purchased your home. After making an offer, most homebuyers will order a full home inspection before going through with the sale. Depending on what they find, they may choose to back out of the deal. The good news is that most home insurance inspections are less rigorous. It isn’t uncommon for insurance companies to only request an exterior inspection to assess the foundation, siding, roof, and general condition of the outside of the home.
But it is possible that your insurance company will want to inspect the inside of your home as well. In this case, it’s a safe bet that the inspector will look at your home’s major systems. That includes your:
- Heating and air conditioning
- Plumbing
- Electrical systems
Depending on the age and value of your home, the insurance company might order a full home inspection. Either way, the inspector will likely take photos and perform safety checks. They’ll also assess the size of the property to make sure it matches the square footage listed in your policy.
Do I need to be home during a home inspection?
Unless you live in a gated community or have restricted access to certain parts of your property, you won’t need to be home for an exterior home insurance inspection. And in most cases, you should get word from the insurance company in advance to schedule the inspection — but not always. Even if the inspector shows up unannounced, they should never enter your home without your consent.
Should I take steps to prepare my home?
It depends on the condition of your home. If there are obvious issues, like electrical problems or mold growth, it’s probably wise to address those before your home inspection. That can help you get ahead of repair requests from the insurance company. You’ll also want to consider tending to any minor issues that the inspector is likely to notice, such as a visible leak or broken door frame. If you do make any repairs, be sure to hang onto your receipts in case you need to provide them.
What would cause me to fail my home inspection?
If the inspector finds any significant issues, you might not pass your inspection. Red flags may pop up if there are problems with your home’s:
- Roof
- Foundation
- Plumbing
- Electricity
- Heating and air conditioning
- Doors and windows
You might also fail if the inspector discovers evidence of mold, termites, or building code violations. Having a high number of previous claims or visible maintenance issues can also create a roadblock for homeowners. The question then becomes: What happens next?
What can I expect after a failed home inspection?
If you fail your home insurance inspection, the insurer may cancel your policy or choose not to renew it when the term ends. If this happens, you’ll want to contact them as soon as possible to discuss your options. It may be as simple as making the necessary repairs. Just be aware that your premiums may increase.
If your insurance company no longer wants to assume the risk of covering you, start looking for a new insurer sooner rather than later. That can help prevent a lapse in your coverage, which could create a major headache. If you don’t find a new policy, your mortgage lender might choose one for you and roll the premiums into your monthly payment. This is known as force-placed insurance, and it can be costly. Your new coverage might also be less than ideal. No matter what, you’ll want to understand what caused you to fail the home inspection in the first place so that you can try to avoid similar failures in the future.
You may not be able to avoid a home insurance inspection, but you can certainly prepare for one. Fixing issues with your home can help improve your chances of passing your inspection. That might prevent an increase in your premiums and help keep your policy intact. If you do need to change insurance companies, you can quickly compare policies from top-rated carriers with Matic.
