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Insurance Company Inspections – Everything you need to know!

tony • September 22, 2018

One of the realities about home insurance in Florida is insurance company inspections.  But before we get into the things that insurance companies are looking for – let’s first talk about the who and the why?

What you need to know…

Home insurance companies in Florida have 90 days by statute to thoroughly underwrite your insurance application to determine if your home meets their guidelines.  Many times, these insurance companies will pay for an inspection company to come out to your property to do an exterior inspection.  However, depending on the size of the home or the value of the home, they may pay for a full interior and exterior inspection.  They will use this inspection to help determine if the home meets their guidelines.

What are they looking? 

Insurance companies are typically looking for three things:

First, they’re looking for obvious signs of hazard.  This can include certain breed of dog’s, trampolines, diving boards, cracks on driveways or sidewalks, large tree branches overhanging the roof, swimming pools without a gate, etc.

Second, they’re looking signs disrepair and/or areas in need of attention.  Most commonly, this can be stucco cracks, tree limbs in contact with the roof, missing and/or curled shingles, etc.

Third, they’re looking to verify things that are noted on the application.  For example, is the home all concrete block construction or is it combination of concrete block and frame?  Is the home really in a gated community?  Is the roof a hip roof all the way around or does it have a small section with another roof shape – perhaps a flat roof or gable roof on the back of the house.  The insurance company will also recalculate the replacement cost of the home to compare to the replacement cost on the application.  They’re looking to ensure you’re adequately insured according to their estimation.

What happens after the inspection?

Most times nothing at all.  However, if signs of hazard or disrepair are noted, the insurance company can and typically will require that hazards be removed and the areas in need of attention are attended to.  The carrier typically gives a reasonable amount of time to address the situation.  Failure to provide repair and/or hazard removal documentation such as photos and/or receipts before their deadline can result in the insurance policy being cancelled with only 20 days notice.

Additionally, the insurance carrier can remove certain discounts if they find the home doesn’t qualify for the discount being given.  For example, if your application says the home is 100% concrete block construction but the second floor turns out to be frame construction, well your rates can change.  Or if it appears you have a hip roof but the inspector notes a gable in the back of the house, your rates can change.

Lastly, if the carrier calculates the replacement cost of the home and it’s higher than what is estimated on your insurance application – they can and typically will increase your coverages which means your rates can change after policy inception.

Can I do anything about it?

With all that being said sometimes insurance underwriters, and the inspectors they hire, make mistakes – they’re human.  If their requests don’t make any sense to you or their replacement cost calculations seem ridiculous – the best course of action is to let the agent know so they can go through all the options with you.

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