02/11/2013: Citizens Property Insurance Corp. board members approved the removal of up to 31,000 wind-only policies in South Florida on Monday, removing about $30 billion in risk and $840 million in annual probable maximum loss from its books. - Gray Rohrer, The Florida Current
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 on homes 30 years and older. After barrage of hurricanes in Florida (2004-2005), the Four Point Insurance Inspection has taken on added importance. As insurance companies are beginning to see the benefit of the inspection, the program is spreading to other areas of the country. The benefit to the insurance company is, obviously, reduced loss risk on homeowners 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.
The Four Point Insurance Inspection consists of a visual survey of the following four primary components:
The insurance companies are expecting the condition of the components listed above to be working as intended within the manufactures specifications. The criteria used to judge the components include:
Current operating conditions
Scheduled maintenance requirements
Expected service life
Is there a standard form to fill out?
There is no industry wide standard form for a Four Point Inspection. 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. Accurate Home Inspections of America, LLC uses the NACHI Uniform 4 Point Inspection form and is approved by Citizens Insurance Corp.and accepted by almost all insurance companies.
Can I fill out the form myself?
Insurance companies want these forms filled out by certain qualified individuals such as a licensed Professional Engineer, Electrician, General or Roofing Contractor and Certified Home Inspector.
I had a home inspection before I purchased the home. Can I use that report instead of getting a Four Point Inspection Report?
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.
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. Accurate Home Inspections of America, LLC is proud to offer four point insurance inspections as part of our full line of inspection services.