What is a 4-point inspection?

If you're considering buying an older property and want to make sure you can get or renew your homeowners insurance coverage you may encounter the concept of a 4-point inspection.

What is a 4-point inspection? The short answer is that it's a thorough examination of a house's condition that focuses on four major components: Electrical, plumbing, roofing, and the heating, ventilation and air-conditioning system. Used mainly for insurance purposes, you may still need to have one done even if you have a general home inspection, especially when purchasing an older home.

What is a 4-point inspection?

A 4-point inspection focuses on the HVAC system, roof, electrical, and plumbing. A certified home inspector tests and reviews these features to determine the property's condition.

A 4-point inspection is typically required when insuring an older home for the first time or when renewing an existing policy. Home insurance companies usually require 4-point inspections on properties that are at least 20 to 30 years old. That's because any concerns relating to major systems could result in costly repairs for the insurer.

Benefits of a 4-point inspection

A 4-point inspection helps both homeowners and insurance companies evaluate a home's condition. It can help you detect the need for repairs before they become severe.

Here are some of the benefits of a 4-point inspection.

• It's a fast and affordable assessment. A 4-point inspection provides an overview of the major systems in a home, giving you a better understanding of the property's condition.
• It helps identify existing or potential problems and expenses. Knowing your home's condition enables you to plan for upgrades or necessary repairs.
• It can save you money on homeowners insurance. If the 4-point inspection finds your home is in good condition, it can save you money on your policy because unexpected repairs are less likely.

What does a 4-point inspection cover?

A licensed and certified inspector will visit your home to check the following systems as part of a 4-point inspection.

• HVAC system: An inspection will look for obvious signs of leakage in the ventilation system and ensure that hot and cold air are coming out of the vents.
• Electrical: Homes with older wiring, such as aluminum or knob-and-tube wiring, increase the risk of fire and are often uninsurable.
• Plumbing: The home inspector will gauge pipes for their likelihood of bursting, which could lead to water damage.
• Roofing: Inspectors assess the age, material, and expected lifespan of the roof.

Heating, ventilation, and air conditioning (HVAC)

A central HVAC system controls the climate and temperature within your residence.

Improperly installed or outdated HVAC systems increase the risk of poor air quality and dust accumulation, possibly aggravating health complications.

Specifics that a 4-point inspection will look for include:

• Full functionality of heating, cooling, and ventilation, which can involve physical inspection of devices along with temperature and humidity readings.
• Condition of units, including proper maintenance, signs of any water damage, etc.
• Age and life expectancy of the units, including the typical replacement interval.

Electrical panels and wiring

The inspector will thoroughly examine your electrical system to ensure it complies with local building codes and regulations.

Should your 4-point inspector find a problem such as a code violation, you may still pass the inspection. Whether you pass or fail the inspection depends on the seriousness of the breach and the level of risk involved.

The inspector may require you to replace specific components of the electrical system to pass the inspection. Such components may include.

• Aluminum branch wiring
• Fuse boxes
• Cloth and sheath wiring
• Double-tapped breakers
• Knob-and-tube wiring

Plumbing connections and fixtures

The inspector will also examine the plumbing system, focusing on the materials the pipes are made of and the age of the drains and supply lines. They'll also look for signs of water leakage and examine the water heater to make sure that it's up to code and effectively distributes water throughout the home.

Common problems inspectors report include leaking pipes, rusted faucets, cracked toilets, faulty sinks, and improperly installed tubs and showers.

Roofing

The roof is essential to your home's structural integrity, as well as its safety and energy efficiency. As such, the roof inspection is typically the most comprehensive part of a 4-point inspection.

Several elements are commonly evaluated during the roofing inspection.

• Age: Inspectors look for cracked, curling, or missing shingles, as well as any leaks or damage.
• Signs of deterioration: Inspectors also look for signs of wear and tear or damage that can compromise the home's safety.
• Leakage: Inspectors will also look for leaks.
• Structure: The condition, makeup, and shape of your roof affect your home's ability to withstand common weather conditions.

How do I prepare for a 4-point inspection?

You'll want to prepare for a 4-point inspection before the inspector's arrival. You can do so by:

• Ensuring that the inspector has access to the areas that will be examined.
• Testing the central HVAC system and other major systems
• Looking for uninsurable electrical components so they can be replaced
• Checking for deteriorated pipes and water damage
• Looking for damaged or missing roof shingles and any resulting water damage
• Noting any specific issues that you'll want to disclose to the inspector

4-point inspection vs. full inspection

A 4-point inspection differs from a standard home inspection in several ways. While both inspections evaluate the home's condition, they differ in terms of insurance requirements and the time it takes to complete.

Extent of inspection

A 4-point inspection is generally quicker and less expensive than a complete home inspection. A full home inspection is more thorough since it also examines:

• Appliances
• The internal and external structure of the home
• Drainage and grading
• Doors and windows

Purpose of inspection

A 4-point inspection is usually requested by the buyer or insurer and examines safety and structural integrity issues in older homes.

If requested by an insurer, any problems the inspector finds with the home may affect your insurance coverage.

If requested by the buyer, a 4-point inspection allows them to get a better sense of the property's condition and value.

If the full inspection results reveal defects, insurance coverage for the property may be more difficult to obtain and more expensive.

Insurance requirements

Insurers frequently require homeowners to renew their policies for properties that are anywhere from 4 – 30 years old. That's because, as homes age, they are subject to wear and tear. The older a house is, the greater the likelihood it will need expensive repairs.

A complete inspection is not typically a requirement for insurers or lenders. However, it is generally wise for a buyer to request one as part of the home buying process. Doing so is considered a crucial step in buying a home, and can protect you from buying a house that needs expensive repairs if you have a home inspection contingency.

4-point home inspection costs

The cost of a 4-point home inspection varies depending on your location and your insurance company. On the low end, you can expect to pay $50 – $150, all the way up to $500 – $800 at the high end of the range.

FAQ

Here are answers to common questions about 4-point inspections.

What does a 4-point inspection look at?

A 4-point inspection looks at a home's electrical system, plumbing, roof and HVAC system. Inspectors will look for damage, ensure everything works correctly, and identify any necessary repairs, whether immediate or in the near future.

How long does a 4-point inspection take?

It can take anywhere from 30 minutes to 3 hours to conduct a 4-point inspection, depending on the size of the home, any issues discovered, and other factors.

What will cause a 4-point inspection to fail?

If the inspector finds safety hazards, nonfunctioning systems, or the need for extensive repairs, it may affect your decision to buy the home and your homeowners insurance policy.

What happens if a home fails a 4-point inspection?

If a 4-point inspection finds serious problems with a home, you may have trouble obtaining homeowners insurance for it, or your insurer may charge more for it or even cancel your policy. You may need to make repairs to keep your home insured.

Who is liable for defects after a 4-point inspection?

If you own the inspected home, you're responsible for making any repairs required to insurance the property. If you're getting mortgage to buy a home and the purchase agreement includes an inspection contingency, you can ask the seller to make repairs or compensate you for them in some way. Once you buy the home, you're responsible for any repairs.

The bottom line: Take steps to get ready for a 4-point inspection

A 4-point inspection examines a home's HVAC system, plumbing, electrical system, and roof. Insurers often require these inspections on older homes to understand what degree of financial risk they take in insuring them.

Interested in learning more about what's involved in becoming a home buyer and how to plan for a new property? Reach out to Rocket Mortgage® today to apply for mortgage preapproval.