The Four Point Insurance Inspection was created after Hurricane Andrew struck Florida in 1992. It is performed on behalf of the insurance companies and, typically, as a requirement for the insurer offering insurance to the new homeowner. After last year's barrage of hurricanes in Florida, the Four Point Insurance Inspection has taken on added importance. As insurance companies are beginning to see the benefit of the inspection, the program is spreading to other areas of the country. The benefit to the insurance company is, obviously, reduced loss risk on homeowner's insurance policies. This is an area of business that has, for many years, been a money loser for insurance companies.
In 2002, the Florida Legislature passed a law that combined the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA). This resulted in the creation of Citizens Property insurance Corporation (Citizens), which more efficiently and effectively provides insurance to, and serves the needs of, homeowners in high-risk areas and others who cannot find coverage in the open, private insurance market. It is funded by premiums paid by the insured and from other insurance companies paying into the program to reduce their overall losses.
Citizens operates under the direction of a seven-member Board of Governors, appointed by the State Treasurer for three-year terms, representing geographically diverse regions of the state. The State Treasurer also appoints a technical advisory board to provide information and advice to the Board of Governors.
The Four Point Insurance Inspection consists of the following four systems:
- Roof inspection
- Electrical Inspection
- HVAC (Heat, Ventilation & Air Conditioning )
- Plumbing
The insurance companies are looking for the four systems to be in generally good working condition and fulfilling their intended function. If the home is an older home the insurance companies want to see that the systems have been updated. In most cases, the forms are provided by the insurance companies to their clients. The clients then ask the inspector to fill the form out during the course of the home inspection.
There are other types of specialized programs that are similar in nature to this type of inspection and may exist in specific markets. For example, some states require low income buyers to obtain an inspection of a home prior to purchase to obtain a low interest loan. In Missouri, for example, the Missouri Housing Development Commission (MHDC) has an inspection requirement that is similar to a Four Point Insurance Inspection. Another example would be in California where many homeowner insurance companies require verification of foundation attachment for homes built prior to 1965.
In summary, the Four Point Insurance Inspection program is
gaining in popularity and will likely continue to expand as the
insurance companies recognize the value of the inspection and the
savings benefits it provides to the insurance carrier.
Questions and Answers on 4 Point Inspections
What are they looking for in these four point insurance
inspection reports ?
They are generally looking for most systems in the four point
inspection to have been updated to current standards and are in good
condition. The four point inspection is a tool for them to evaluate
your homes condition on the four points.
Who can perform this 4 point inspection ? Can I Fill out
the paper work myself?
The Insurance Companies prefer to use certified
Inspectors to complete the four point insurance inspection. That
they are able to provide a professional opinion to the four areas
inspected. A home owner can not fill out the four point inspection
form themselves.
Can I not comply with this four point inspection type of
request?
We have heard reports of hardships maintaining coverage and or
acquiring new insurance due to the four point inspection. Some
Insurance providers in Florida and other States will not cover you
anymore without the four point inspection.
I am buying a home. Can I use this as a less expensive
pre purchase home inspection?
No. This Four Point Inspection is not intended for use as a pre sale
or pre purchase comprehensive inspection. As it is geared for your
insurance needs, The Four Point Inspection will not contain the type
of information you may need to make an informed decision for
purchase.
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