Let's face it Texas. The home insurance marketplace can currently be classified as something worse than living North of the Red River. Every time a homeowners policy renews, a homeowners insurance company gets its wings given the ridiculous insurance rate increases that the insurance companies are passing over to good Texas homeowners. The prices are so absurd at this point, every Texan we know is looking for a new policy. But the pesky insurance underwriters at these insurance carriers are making it harder and harder to find a new policy. Ange getting insurance without inspection is almost impossible these days.
As a result of this chaos, many Texas homeowners fear the prospect of switching to a new home insurance provider. That process is clouded by concerns about the home insurance inspections that come with it. Questions linger about the potential for these evaluations to uncover issues that could jeopardize coverage. It's a process that might seem intrusive and fraught with anxieties about insurance premiums, the scrutiny of insurance inspectors, and the overall condition of one's home. Insurance For Texans aims to demystify these home insurance inspections, explaining their purpose and what they mean for your homeowners insurance policy.
The underlying reason for homeowners insurance inspections is a formal risk assessment of your Fort Worth home. When you initiate a new relationship with an insurance provider, they need to ascertain the condition of the property they're insuring. At a minimum, the home insurance company will want an exterior inspection of your home that evaluates the condition of your roof and exterior walls along with overhanging trees. When the market was less congested with yuck, this was very much the normal inspection for homeowners insurance.
But in the current environment, inspections for insurance companies have become more strict. It is safe to say that they are more like a home inspection that you likely had done before you purchased the home you're now trying to insure. Just like with that original inspection, this home inspection process covers various components of your home. Including a special focus on elements like the electrical system, plumbing systems, water heater, and roof. This would be classified as a 4-Point Inspection.
During these inspections, insurance inspectors are on the lookout for any potential issues that could indicate a higher risk of future claims, such as water damage or fire hazards. They may request that you perform a 4-Point Inspection for them, especially if your home is older, to closely evaluate the state of your home’s roof, electrical wiring, plumbing, and home units like your HVAC and water heater.
If an insurance underwriting inspection identifies a problem, such as an outdated electrical system that doesn't meet current safety standards or a water heater that's well past its prime, it doesn't automatically result in the loss of coverage. Instead, your insurance provider, typically through your insurance agent, will inform you of the potential issues and provide a time frame in which to address them. This period, which may span from 30 to 60 days, allows you to either remedy the situation or search for a new home insurance provider whose insurance policies might accommodate the existing condition of your home.
It's worth noting that resolving such issues not only ensures the continuity of your homeowners insurance policy but can also prevent future water damage or electrical system failures, safeguarding your home and possibly leading to lower insurance premiums. Making the recommended changes benefits you and your home in the end, including your cost of homeowners insurance.
Contrary to what many believe, Texas law doesn't stipulate that homeowners insurance policies require an inspection for issuance. In the past, insurance agents themselves would often survey a property before underwriting a policy. This is called field underwriting. Today, professional insurance inspectors have largely taken over this role, conducting thorough evaluations for insurance for homes. However, the requirement of an inspection varies among insurance companies. Some may waive the process entirely or opt for periodic insurance home inspections to keep tabs on potential risks. And some are now allowing the homeowners to perform the 4-Point home inspection themselves by submitting pictures of their home into a website or app.
Understanding the intricacies of homeowners insurance inspections can calm your fears when considering whether or not to change insurance companies. Independent insurance agents, like those at Insurance For Texans, can guide you to home insurance providers that are less stringent about inspections or may offer a more customer friendly type of inspection like the 4-Point Inspection done with photos.
To minimize potential risks and address issues that insurance inspectors might flag, it's prudent to regularly maintain and update critical home systems. Ensure your smoke detectors are functional, your air conditioning system is serviced, and your electrical wiring is up to code. It also makes sense to make sure that trees are trimmed back from your roof line. Not only does this bolster the safety and integrity of your home, but it can also contribute to more favorable insurance costs.
It's important to understand the role of professional inspectors. Inspectors are there to focus on the current state of your home for policy underwriting purposes. They are simply there to make sure that you are covered properly by your homeowner insurance, and that the company can meet the obligations of the insurance contract to provide you what you deserve. A bad roof isn't helping them, and it's also driving up your neighbor's premiums if a claim is made on it. This process is just a step in finding a better solution for your new home insurance coverage whether you live in Waco, Austin, or Lubbock.
Transitioning to a new homeowners insurance provider in Texas doesn't have to be an overwhelming process. With a clear understanding of the role of home insurance inspections and the proactive steps you can take to ensure your home is in good condition, you can make informed decisions that keep your home protected and potentially lower your cost of homeowners insurance. Consulting with an independent insurance agent to navigate your options and select a homeowner insurance policy that best fits your needs, with or without the requirement of a home inspection. The agents at Insurance For Texans have your back in this process and can help you answer your homeowners insurance questions.
Call us at 469.789.0220 today or click the button below to get TRUE Texas Home Insurance.