How to prepare for an insurance home inspection

An insurance inspection is not a home inspection of the kind a buyer orders before closing. It is the carrier checking that the house it agreed to insure matches the application, and looking for conditions that make a claim more likely. Many carriers inspect new policies in the first weeks or months after binding, while they can still cancel within the underwriting period, and some inspect again before renewal or after a claim. Increasingly they also review aerial and satellite imagery of the roof and yard without anyone visiting.

Most inspections are brief and most houses pass with no action. When something is found, the carrier may simply note it, require a repair by a deadline, adjust the premium, or cancel or non-renew the policy. Preparation is inexpensive and mostly about fixing small, visible items and having records ready. This guide covers the steps for homeowners in Arizona, Nevada, Utah and Idaho.

What to gather

Having these on hand answers the questions that most often lead to follow-up.

• Receipts or permits for a roof replacement, with the date and material, and any roof certification from a roofer.
• Dates and invoices for updates to the electrical panel, wiring, plumbing, water heater and heating and cooling systems.
• The homeowners application or declarations page, to check that square footage, construction type, roof type and safety features were described accurately.
• Records of wildfire mitigation work, pool barrier installation, security or monitored alarm systems, and water leak detection devices.
• The inspection company's contact details from the carrier's letter, if you received one, and whether the inspection is exterior only or includes the interior.

Step one: know what the inspector looks for

Inspectors follow a checklist set by the carrier. It usually covers these areas.

• The roof: age, material, missing or cracked shingles or tiles, curling, granule loss, sagging, and patched areas. In Arizona and Nevada, evaporative coolers and flat roof sections are checked for leaks; in Utah and Idaho, ice dam damage and snow load stress.
• Electrical: panels with a history of problems, fuse boxes, exposed wiring, missing covers, and extension cords used as permanent wiring.
• Plumbing and water heater: older pipe materials with a history of failure, active leaks, and the water heater's age, condition and seismic strapping where required.
• Liability hazards: missing handrails on steps, broken decks, uneven walkways, pools without barriers, trampolines and certain dogs.
• Exterior condition: overhanging tree limbs, debris and brush close to the house, peeling paint, damaged siding, and signs of vacancy or business use.
• Safety features: smoke detectors, fire extinguishers, deadbolts, and any alarm system claimed for a discount.

Step two: fix the inexpensive items first

Walk around the house with the checklist and deal with the items that cost little and are easily seen. Install handrails on any steps that lack them, repair loose deck boards and cracked walkways, and replace missing electrical cover plates. Test smoke detectors and replace old units. Trim tree limbs away from the roof, clean gutters, and clear brush, firewood and debris from against the house, which in wildfire-prone areas around Prescott, Flagstaff, the Boise foothills and the Wasatch benches also counts toward defensible space. Make sure pool gates self-close and latch, and keep the trampoline netted or put away.

Larger items, such as an old roof or an outdated electrical panel, cannot be fixed before an inspection scheduled next week. Get a quote and a date from a contractor, so that if the carrier raises the issue you can show the work is planned. A roofer's written certification that the roof has remaining life can resolve a question about age.

Step three: handle the inspection itself

Exterior inspections often happen without an appointment; the inspector walks the outside, takes photographs and leaves. Interior inspections are scheduled, and someone over the age of majority usually needs to be home. Be present if you can, secure dogs, and give the inspector access to the electrical panel, water heater, attic hatch and any crawl space.

Answer questions accurately and briefly. If asked about the roof's age, give the date from the receipt rather than a guess. Point out updates the inspector might miss, such as a new panel or repiped plumbing, and offer the invoices. Do not speculate about problems you are not sure exist, and do not conceal anything: a misrepresentation discovered later is a more serious problem than the condition itself.

Step four: respond to the report

Ask the carrier or your agent for a copy of the inspection report or a summary of the findings. Read each item. Recommendations are advisory, while requirements come with a deadline and a consequence, usually cancellation or non-renewal if the item is not corrected. Complete required repairs before the deadline and send dated photographs, receipts and, where relevant, a contractor's letter. If you need more time for a major repair, ask for an extension in writing before the deadline passes rather than after.

If the report is wrong, such as a roof described as twenty years old that was replaced recently, or square footage that does not match the home, send documents that correct it. The premium or eligibility decision may change. If the carrier still cancels or non-renews, start shopping at once; the corrected report and the completed repairs will help with other carriers.

Common mistakes

These are the errors that turn a routine inspection into a problem.

• Ignoring the carrier's inspection letter or requirement notice.
• Letting a repair deadline pass without asking for an extension.
• Guessing at the roof's age instead of finding the receipt.
• Leaving brush, debris or overhanging limbs that are cheap to clear.
• Claiming an alarm or safety feature for a discount that is not installed or not working.
• Hiding a business use, a vacancy or a dog the application did not disclose.

A worked example

Suppose a homeowner in Sandy buys a house and binds a homeowners policy with a $1,800 annual premium. Six weeks later an inspector notes a missing handrail on the front steps, an unstrapped water heater, a tree limb over the roof, and a roof the application listed as twenty years old. The carrier sends a requirement letter giving thirty days to fix the handrail, the strapping and the limb, and says the roof will be reviewed. She pays $300 for a handrail, $150 for strapping and $400 for tree trimming, sends dated photographs and receipts within three weeks, and finds the permit showing the roof was replaced eight years ago. The carrier clears the requirements, corrects the roof age, and lowers the premium to $1,650 at renewal. The figures are hypothetical; prompt repairs and the permit record are what kept the policy and improved its price.

How to use this

If you have received an inspection notice or requirement letter, send it to us with your declarations page. We will explain what the carrier is asking for, help you document the repairs, and, if the carrier cancels or non-renews, compare options across the carriers we represent in Arizona, Nevada, Utah and Idaho. If the findings are minor and the current policy remains a good fit, we will tell you that.