Home Insurance Inspection
Your CRG agent has just written you a new home insurance policy with a new carrier. A couple of weeks go by and you receive a notice from your new insurance carrier saying an inspection is going to be done on your home. This is nothing to worry about and is actually becoming more and more common in insurance. But what is the reason for an inspection?
Why do you need an inspection?
First off, the notice you receive for the inspection will give you details on what third-party service will be performing the inspection. The inspector will be carrying credentials and identifying him/herself as the person who will be inspecting your property on behalf of your insurance carrier. Often times you do not even need to be home if only an exterior inspection is required.
There can be many reasons for a home inspection, but the main reason is to make sure the home is insured properly. Before the policy was written, your agent asked you questions about your home in order to get an accurate Replacement Cost Estimate (RCE). You may be familiar with this term by now, but as a reminder, an RCE is a dollar amount that is generated for what it would cost to rebuild your home as it is today with all new materials. Details about your home are gathered such as number of stories, square footage, number of beds/baths, etc. all to get an accurate value to insure your home for. A home inspection is done to verify the details about the home and see if the insured amount of the home needs to be adjusted.
Safety precautions and hazards
Another reason for a home inspection is to draw attention to potential hazards around your home. One example is maybe if you don’t have a railing on a small staircase out your backdoor. The inspection service could bring this to your insurance company’s attention and they may recommend or require you to put up a railing for safety.
Quality of materials and home maintenance
The inspector will also look at the quality of your roof, siding, any outbuildings you have, and other aspects of your home to see if any repairs are necessary. Again, any recommendations for repairs will come from your insurance company.
Interior or exterior inspection?
The notice you received from your insurance carrier will also state whether an interior inspection is required. In this case, they will schedule a time with you so the inspection service can have a look at a few things inside your home. The reason for an interior inspection is usually to check the electrical and plumbing of older homes to make sure everything is updated and up to code.
Due to the pandemic and the fact that nearly all of our population has access to a smartphone, there is a very new alternative to inspections that some carriers are offering. Insurance carriers are slowly offering homeowners the option to perform a self-home evaluation on their smartphone by taking pictures and answering a few questions. This can replace the need for a physical home inspection if done properly.
Why it’s important
Having a home inspection done does nothing but benefit you. It is another measure insurance companies take to make sure your home is covered properly. It may seem like a hassle, but it is only meant to protect you.
Great insurance companies trust qualified insurance agents to sell customized policies on their behalf. What makes these insurance companies great is the fact that they go the extra mile to make sure the things that matter to you most are insured properly. So, rest assured knowing that your local CRG agent and your insurance company are here to protect what matters to you most.