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 the barrage of hurricanes in Florida two years ago, 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 homeowners 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.
Insurance companies have become increasingly reluctant to issue Homeowner Insurance Policies on older homes (usually 25 years old or more). Their common concern is that there may be conditions in an older home that could become a liability to them.
For instance; a home with a roof nearing the end of its reliable service life may fail while under the policy and the homeowner may seek reimbursement from their insurance company for damages to the home or its contents. Similar concerns extend to the condition of the HVAC, electrical and plumbing systems in an older home. If these elements are in poor condition, in need of being updated or replaced or were improperly installed, they may fail and cause fire or water damage to a home.
Newer homes are assumed (by the insurance companies) to not have these problems as frequently as older homes.
The Four Point Insurance Inspection consists of a visual survey of the following four primary components:
1. Roof
2. Electrical
3. HVAC (Heat, Ventilation & Air Conditioning)
4. Plumbing
The criteria used to judge the components include:
1. Current operating conditions
2. Scheduled maintenance requirements
3. Expected service life
This type of inspection is not intended for use as a pre sale or pre purchase comprehensive inspection. As it is geared for your insurance needs, It will not contain the type of information you may need to make an informed decision for purchase.
The insurance companies do not want large reports that contain other information. They want only specific information about the HVAC, plumbing, electrical system and roof in a short one or two page signed document. The inspector performing the inspection is not employed by an Insurance company, and cannot guarantee any aspect of the four point inspection, including but not limited to: INSURABILITY, UNDERWRITING, NEED FOR ADDITIONAL CERTIFICATION OR INSPECTIONS SUBSEQUENT TO INITIAL INSPECTION, WORK TO BE PERFORMED FOLLOWING INSPECTION, Etc.
There is no industry wide standard form for a Four Point Inspection. Some insurance companies provide their own forms; however, most insurance companies will accept forms from companies that perform home inspections provided qualified individuals fill them out. ADI Inspection Field Services has developed a form that meets the requirements of most insurance companies in Florida.
They are signed by an ICC Certified Inspector http://www.iccsafe.org/e/certsearch.html (search for Gibson).
