Do I Need a Home Inspection for My Insurance Policy?
Have you been asked to have your home inspected for an insurance policy? Well, this shouldn’t alarm you. The primary reason for this is to ensure that your home is properly insured and that the insurance coverage reflects the cost of rebuilding the home in an event of total loss.
Homeowners are, therefore, encouraged to hire an expert inspector to estimate the cost and value of their homes as well as identify any problems before buying the policies. Today, many insurance companies will require an inspection as part of the application process.
At times, a replacement value calculation software is used to determine the replacement value of your home. Even though the software works, each and every home is unique in its own way. As a result, the calculations may be way off. This is why a home inspection is always the best option to validate the cost of rebuilding your home when applying for an insurance policy.
What will be covered?
Insurance policies will basically provide repair and replacement coverage for your home as well as other structures associated with your property. Sometimes the damages can be so serious that you may have to make some living arrangements outside your home. In such cases, some policies pay for the temporary living expenses while your home is being repaired.
A lot of policies, however, include a liability coverage where homeowners become liable for any injuries or accidents caused to other individuals on their property. Before getting an insurance policy, ensure you understand what it covers and what it doesn’t.
How do you qualify for an insurance policy?
Each and every insurance company has its own guidelines that help in determining the different risks associated with insuring your home. These guidelines are also used to determine whether a company will endorse or decline an insurance application. In the presence of high-risk factors, the insurance company may increase the deductible amounts instead of completely declining the application.
What type of home inspection is required?
Some insurance companies usually ask homeowners to simply provide clear photos of their home to confirm the existence, address, and nearby structures. Nevertheless, many insurances companies today will hire a certified inspector who will provide them with a comprehensive inspection report.
Alternatively, they may ask you for an up-to-date inspection report of your home from a certified and reputable home inspector. The home inspections will help the insurance company assess the risk of insuring your home, which eventually determines the premium and deductible amounts.
How do the premium amounts work?
Premium amounts and deductibles will depend on the insurance company you are using. To make more accurate estimates of the replacement value of your home, underwriters of the insurance companies will take into consideration different aspects such as how susceptible is it to floods, earthquake, hail, and so on. They may also consider prior insurance claims of your home, if applicable, as well as your credit history.
If you are looking for certified and reputable home inspectors for your insurance policy application, do not hesitate to give us a call. At Arnold Investigative Engineering, we will be glad to help.