Getting Home Insurance Without an Inspection

Home Insurance Advice Home Home Insurance Without an Inspection

WRITTEN BY: Julia Matseikovich

UPDATED: AUGUST 10, 2023 | 3 MIN READ

Getting home insurance without an inspection

A home is the biggest purchase you’re likely to make, so it’s important to protect your investment — with homeowner’s insurance. If you’re purchasing a policy, your insurance company will most likely require a home inspection. Keep reading to learn more.

Can you get home insurance without an inspection?

A few exceptions exist, but you can generally expect a home inspection. Remember that this will likely increase your rate if you’re looking for an insurance policy without an inspection. The insurance company cannot know if your home has any problems. After all, they are the ones who will be paying out for those issues.

Sometimes, you can send a home appraisal to an insurance company to replace the home inspection.

What’s the difference between a home appraisal and an inspection?

An appraisal is a process that determines the value of your home. On the other hand, home inspections are when professionals look for defects in a home’s structure or systems. A home appraisal is about cost, while home inspections focus on the condition of your house.

Can you use an appraisal to get home insurance?

Some insurance companies will allow you to use an appraisal rather than get a home inspection. Plus, a home appraisal is important anyways. It helps you understand how much coverage you need and what kind of deductible to pay.

What happens during a home inspection?

Several steps are involved in a home inspection, from the foundation and exterior to the interior, including heating and cooling systems. Below we’ll discuss the different phases involved.

What’s a 4-point home inspection?

The 4-point home inspection helps insurers spot outdated or faulty systems. They’ll be looking at these key categories:

Plumbing
HVAC
Electrical
Roof condition

If your home has outdated systems, it will be a bigger risk to insurance companies. Your premium will be higher.

Roof condition

If your roof leaks, your home risks floods and water damage. Water damage can lead to mold and mildew growth, which causes health problems. All of this is going to cost insurance companies.

Heating, ventilation, and air conditioning (HVAC) system

The heating, ventilation, and air conditioning (HVAC) system is one of the most important parts of a house. This system provides heat and air conditioning to the house. The HVAC system also removes humidity from the air and filters dust particles from it.

Your insurance company will inspect your HVAC system. Issues with this system can cost them a lot of money.

Plumbing

Your insurance company will want to inspect the plumbing system. It can cause floods and water damage and is costly to fix. A bad plumbing system can also cause flooding.

Electrical

Faulty electrical systems can cause fires, putting your home at increased risk. Your insurance company will inspect your electrical system to assess your risk of fires accurately. If you’re at increased risk, you’ll have a higher rate.

What other things might be inspected?

Here are some more areas of your home that are subject to inspection:

Chimneys
Pests
Lead paint
Material made out of asbestos
Water damage
Mold
Shingles

6 tips for passing your home inspection

home insurance tips for passing your home inspection

Here’s how to increase your chance of passing an inspection:

Make sure your yard is in order. Clean it up, cut any branches too close to the house, and ensure dirt and shrubbery are far enough away from your house.
Inspect the outside of your house for any damages. Ensure all siding, weather strippers, and foundations are healthy. Make sure the gutters are clean and working.
Replace old filters in air conditioning or heating systems.
Test your plumbing and inspect for water damage.
Test your electrical systems, including lights and outlets.
Thoroughly clean your home.

What happens if your home fails its inspection?

If your home fails its inspection, you must fix the damages. Then get your home inspected again. Here are some common issues you might face:

Roof repairs
Updated wiring
Replacing the water heater
Leaks

High-risk insurance policies

If your home inspection deems your house to be high-risk, you’ll be paying for a high-risk policy. You can pay the high-risk insurance policy premium. Or you can choose to fix the issues they found. Then get another inspection, and get a new quote.

Excess and surplus market policies

This market includes insurance companies that aren’t licensed by the state. This means states do not back these companies financially. These insurance companies don’t have to follow the same regulations. They might be willing to take on more risks.

Fair access to insurance requirements (FAIR) plans

Your state has a FAIR plan that you have to assess. These policies are more expensive. However, you can still get a FAIR plan if you can’t get a private insurance policy. For example, if you live in an area prone to natural disasters, you’ll likely need a FAIR plan.

Importance of homeowners insurance

Homeowner’s insurance protects one’s most significant investment – their home. It protects against unexpected events and potential risks that could lead to substantial financial loss. Here are some key reasons why homeowner’s insurance is of utmost importance.

Property damage coverage

Property Damage Coverage: Homeowner’s insurance covers damage to your home caused by perils like fire, vandalism, theft, or natural disasters such as storms, hurricanes, or earthquakes (depending on the policy and additional coverage options). This coverage helps pay for repairs or rebuilding your home, ensuring that you can recover from unforeseen damages.

Liability protection

Homeowners insurance also offers liability protection in case someone is injured on your property or if you accidentally cause damage to someone else’s property. It covers legal fees, medical expenses, and potential lawsuits, providing financial security and peace of mind.

Personal belongings coverage

Your homeowner’s insurance policy typically covers personal belongings such as furniture, appliances, electronics, clothing, and other valuable possessions. If your belongings are damaged, destroyed, or stolen, the insurance company will reimburse you for their value up to the policy’s limits.

Additional living expenses

If your home becomes uninhabitable due to covered damages, homeowner’s insurance can help cover additional living expenses. This includes the cost of temporary accommodation, meals, and other necessary expenses while your home is being repaired or rebuilt.

Mortgage requirement

Most mortgage lenders require borrowers to have homeowner’s insurance as a condition for obtaining a home loan. It protects the homeowner and the lender’s financial interests by ensuring that the property is adequately covered against potential risks.

Peace of mind

Having homeowner’s insurance offers peace of mind, knowing that you are financially protected against unexpected events. Whether it’s a fire, a break-in, or a natural disaster, you can focus on rebuilding and recovering without worrying about the financial burden.

Financial stability

Without homeowner’s insurance, repairing or rebuilding a damaged home can be overwhelming. Insurance provides a safety net, preventing homeowners from facing significant financial strain or even bankruptcy in the event of a major loss.

FAQs

Can I get homeowners insurance without an inspection?

In most cases, insurance companies will require an inspection before issuing coverage. However, there are a few exceptions, such as the company allowing an appraisal in place of the inspection.

What would make a house uninsurable?

In the housing market, an uninsurable property is one that the Federal Housing Administration (FHA) refuses to insure. This is because the property is considered to be too risky, either because it is in unlivable condition or needs extensive repairs.

Why am I being denied for home insurance?

Homeowners insurance companies can deny you coverage based on your claims history, credit score, or underwriting risks. Underwriting risks are factors that make your home more likely to be damaged or destroyed, such as having a pool, an old roof, or a vicious breed of dog.

Who is not eligible for a homeowners policy?

Normal homeowners insurance policies do not cover earthquakes and floods. These natural disasters require separate insurance policies if you want protection from the damage they could cause.

Earthquake insurance is designed to cover damage to your home and its contents caused by an earthquake. Earthquakes can cause a wide range of damage, including structural damage, foundation damage, and damage to your belongings. Earthquake insurance can help you pay for repairs or replacement costs.

Flood insurance is designed to cover damage to your home and its contents caused by a flood. Floods can cause a wide range of damage, including structural damage, foundation damage, and damage to your belongings. Flood insurance can help you pay for repairs or replacement costs.

If you live in an area that is prone to earthquakes or floods, it is important to purchase separate insurance policies to protect yourself from the financial impact of these natural disasters.

Why would you be refused home insurance?

There are several reasons why an insurance company may decline homeowners insurance, including:

Too many claims.
Your house is in a high-risk area, such as flood or earthquake zones.
You live in a building that the government deems unsafe.

However, you can still get a policy through your state’s FAIR plan.

Is it hard to get homeowner’s insurance after being dropped?

If you file too many claims, your insurance company may drop your coverage. It can be challenging to find a new company, but it is possible. Claims only stay on your record for 5 to 7 years.

Why does the insurance company want pictures of my house?

The insurance company wants pictures of your house. This is so they can better understand how much it will cost them to rebuild it. Make sure you submit high-quality photos.