So You Need A 4 Point Inspection for Your Insurance
4 Point Inspections
The Four Point Insurance Inspection was created after Hurricane Andrew struck Florida in 1992. It is performed on behalf of the insurance companies and, typically, as a requirement for the insurer offering insurance to the new homeowner. The benefit to the insurance company is, obviously, reduced loss risk on homeowner's insurance policies. This is an area of business that has, for many years, been a money loser for insurance companies.
In 2002, the Florida Legislature passed a law that combined the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA). This resulted in the creation of Citizens Property insurance Corporation (Citizens), which more efficiently and effectively provides insurance to, and serves the needs of, homeowners in high-risk areas and others who cannot find coverage in the open, private insurance market. It is funded by premiums paid by the insured and from other insurance companies paying into the program to reduce their overall losses.
Citizens operate under the direction of a seven-member Board of Governors, appointed by the State Treasurer for three-year terms, representing geographically diverse regions of the state. The State Treasurer also appoints a technical advisory board to provide information and advice to the Board of Governors. Citizens operates only in Florida.
The Four Point Insurance Inspection consists of the following four systems:
· Roof inspection
· Electrical Inspection
· HVAC (Heat, Ventilation & Air Conditioning
Plumbing
The insurance companies are looking for the four systems to be in generally good working condition and fulfilling their intended function. If the home is an older home the insurance companies want to see that the systems have been updated. In most cases, the forms are provided by the insurance companies to their clients. The clients then ask the inspector to fill the form out during the course of the home inspection.
In summary, the Four Point Insurance Inspection program is gaining in popularity and will likely continue to expand as the insurance companies recognize the value of the inspection and the savings benefits it provides to the insurance carrier.
Don Norman
Inspection Training Associates
Kaplan Professional School Trainer