A “4 Point Inspection” focuses only on four main areas of interest in a home:
The inspection and report describes the condition and age of these elements.
Most Insurance companies have become increasingly reluctant to issue Homeowner Insurance Policies on older homes (usually 25 years old or more).
Their concern is that there may be conditions in an older home that could become a liability to them. For instance; a home with a roof nearing the end of its reliable service life may fail while under the policy and the homeowner may seek reimbursement from their insurance company for damages to the home or its contents. Similar concerns extend to the condition of the HVAC, electrical and plumbing systems in an older home. If these elements are in poor condition, in need of being updated or replaced or were improperly installed, they may fail and cause fire or water damage to a home.
Newer homes are assumed (by the insurance companies) to not have these problems as frequently as older homes.
There is no industry wide standard form for 4 Point Inspection services. Some insurance companies provide their own forms; however, most insurance companies will accept forms from companies that perform home inspections provided that they are filled out by qualified individuals. Insurance companies want these forms filled out by certain qualified individuals such as a licensed Home Inspector, Professional Engineer, Electrician, General or Roofing Contractor.
The insurance companies do not want large reports that contain other information. They want only specific information about the HVAC, plumbing, electrical system and roof in a short one or two page signed document. Before you pay for a home inspection you should research with your insurance company if they will require a Four Point Inspection Report. You can end up paying twice for much of the same service and information gathering.