Why Do I Need a Homeowners Insurance Inspection?
When switching homeowners insurance carriers or purchasing your first policy, it’s common for insurers to send an inspector to assess your property. This standard practice ensures that the coverage accurately reflects your home’s condition and potential risks.
In this article, we’ll address:
- How do home inspections work?
- What are home inspectors looking for?
- What happens after the inspection?
- What if I don't pass my inspection?
How Do Home Inspections Work?
If you’re worried about your home’s condition, it’s a good idea to make any necessary improvements before switching carriers. Addressing issues beforehand can help avoid complications and reduce the likelihood of additional coverage requirements after an inspection.
A home inspection can also provide peace of mind. It ensures your dwelling coverage is adequate and helps you identify potential hazards that might otherwise go unnoticed.
Once you purchase a new homeowners insurance policy, an inspection typically takes place within the first 30–60 days. The most common type is an exterior inspection, where photos are taken of the outside of your home. You usually don’t need to be present for this. However, if your home is older, has high square footage, or is located in a higher-risk area for fire or severe weather, a full interior and exterior inspection may be required.
In some cases, no inspection is needed at all. This depends on the carrier’s underwriting guidelines.
Insurance companies conduct inspections for two primary reasons:
Replacement Cost:
While homeowners do their best to provide accurate property details and our agents help calculate the replacement cost, an inspection can help fine-tune this estimate. If your home is older or has undergone changes that weren’t initially noted, the inspection could adjust the coverage amount up or down.Property Conditions:
Inspectors assess potential hazards like decks without handrails, trees overhanging on the property, roofs in need of repair, or outdated electrical systems. Insurers want to ensure the home is well-maintained and shows “pride of ownership.” Inspectors also verify whether the home is occupied. If you’re undergoing major renovations or haven’t moved in yet, it’s important to be upfront with your agent. Misrepresentation can lead to policy cancellation if there are significant discrepancies.
Keep in mind that inspectors work for independent local inspection companies, not the insurance carrier. They submit their reports to the insurer, whose underwriters review the findings based on the carrier’s guidelines.
Inspectors focus on four key areas:
Roof
Plumbing system
Electrical system
Heating system
We usually ask about updates to these systems during the quoting process because they have limited lifespans. Insurance carriers want to ensure they’ve been updated as necessary since outdated systems can lead to significant risks, like fires or water damage.
If the inspection doesn’t reveal any surprises, your policy will continue as is. However, if the inspection shows that the home’s replacement cost is higher than initially estimated, your policy may be adjusted to reflect the updated amount. On the plus side, if the inspector finds additional safety features—such as alarm systems, interior sprinklers, or retrofitting—discounts may be applied to your policy.
If you don’t pass the inspection, you may need to address the issues identified in the report. Common fixes include trimming overhanging trees, replacing the electrical box, or repairing your roof.
The insurance carrier will provide a deadline to complete these repairs, with a minimum of 30 days’ notice. Some carriers may allow a few months, or even up to a year, to complete the necessary fixes. If the repairs aren’t made within the specified timeframe, the policy may not be renewed.
If your home doesn’t meet the insurer’s guidelines—such as being too old or too close to brush—you can still find coverage through other markets. We work with carriers that specialize in insuring hard-to-place homes, as well as surplus lines or non-admitted markets. As a last resort, there’s also the California FAIR Plan, which provides basic coverage for homes that can’t be insured through traditional carriers.
Need help navigating homeowners insurance inspections or finding coverage for your home? Contact us today for guidance.