You may have recently received a notice from your homeowner’s insurance about your policy renewal and your new premium for next year. While many homeowner’s pay their homeowner’s insurance through escrow, it is important to review this information and see if your policy’s premium has increased.
If your homeowner’s insurance did increase, there may be a reason why and something you can do about it.
Why Is My Homeowner’s Insurance Going Up?
Homeowner’s insurance can increase for a number of factors but many times the increase in the premium can be attributed to the age of the home. As a home ages, systems can fail and lead to damage—and an insurance claim. By increasing your premium, your insurance company is protecting itself from your home’s increased risk for claims. To counter this, you should speak with your carrier about whether a professional inspection or certification of certain aspects of your home could help reduce your premium costs.
How A Home Inspection Can Reduce Insurance Costs
There are three primary inspection types most home insurance companies will accept in exchange for a potential premium reduction if the inspection reveals the home or important aspects of a home to be “in good health.” These insurance inspections are:
Four Point Inspection
This type of inspection is commonly requested by insurance agencies on homes that are over 30 years old but could prove beneficial in younger homes as well. Unlike a regular home inspection which inspects over 400 different aspects of your home, a Four Point Inspection only reviews 4 areas of your home:
Roof: An age estimation is calculated, and the overall condition and life expectancy are noted.
HVAC System: The age is documented as well as any updates/repairs. The current condition and life expectancy are noted on the inspection.
Electrical: Wires and all components of the electrical system the inspector can access are reviewed. Condition is noted and comparison to code requirements are made.
Plumbing: Areas of the plumbing system that are visible to the home inspector are reviewed and their condition, material, and obvious repairs and replacements are noted on the inspection report. The estimated age of the system is calculated and the age of the water heater from its label is also included.
By having a report made by a professional home inspector, both the home owner and the insurance company can get accurate information about a home. The insurance companies can use this information to correct their risk calculations of something occurring (like a burst pipe or likelihood of a roof leak) and adjust premiums and coverage accordingly.
Roof Inspection & Certification
This type of inspection is more common for homeowners to look into when their home is not over 30 years old, but they are unsure about the condition of their roof or its life expectancy—or the roof’s documented age is causing their homeowner’s insurance premium to increase. Some carriers may adjust premiums if the home is certified to last for another 5 or more years.
Wind Mitigation Inspection
This is a popular home inspection option for Florida residents, especially those who live closer to the coast. The wind mitigation inspection provides a realistic estimation of how well a home’s roof and structure can withstand high winds (like those of a hurricane or tropical storm). Newer homes are often built with wind mitigation in mind while older homes can be renovated to include these benefits. It is common for homeowners who get this type of inspection and have a home with a good wind mitigation rating to receive a discount on their home insurance policy.
Professional Tampa Home Inspections With The Homeowner In Mind
AcuSystem Inspections has been in the business for a long time. Our goal is to help homeowners understand their home—its age, condition, how to work certain systems, and how to keep it in good condition. Our inspections are well-detailed and provide recommended course of actions (like repairs or maintenance) where warranted. If you are looking for a way to save one your home insurance policy, contact us to discuss our insurance inspections to determine which type of inspection could benefit you the most.