Why Do I Need Home Insurance Inspections

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On-site home insurance inspections, also known as a survey or appraisal, are fairly new additions to the insurance industry. Home insurance policies are designed so that the coverage would replace a home with a new one if they needed to. That’s true even if your house was built many decades ago. The only requirement for this is that homeowners have to insure their home for its full replacement cost. If that’s missed out on and the house is insured for less than what a replacement would cost, then the homeowner wouldn’t have enough to rebuild based on a total loss and would be subject to depreciation penalties or partial losses.

The agent of the insurance company would traditionally use a computer program that factored in the type of structure, number of bathrooms, square footage of each level, sizes of decks and porches, and other elements. This was done fairly easily without ever having to do a detailed interior inspection. However, after some of the major storms have occurred, many insurance companies are discovering that people were buying coverage that was far below the replacement costs for their home today.

This created a need for a more accurate appraisal system, which required on site inspections and experienced appraisers. The cost of the appraisals also went up, but the accuracy of them greatly improved. It’s necessary to cooperate with your insurance companies based on these matters even though your home insurance inspection may not be the most convenient option that you had planned for. The final appraised amount will be much more accurate and will be able to cover your costs for the replacement of your home in case anything serious ever happens.

For older homes, you should request a home replacement guarantee. This would pay at least 25 percent more than the home insurance amount in case of the increased construction costs based on the supply and demand problems that follow a large storm that would destroy or seriously damage your home.

If you have any question regarding this element of your insurance, it’s a good idea to get in contact with your insurance provider so that they can explain your policy to you. They will also be able to explain some of the recent changes and additions that have been made to how home insurance is being handled. Although it can be confusing at first, these changes are necessary in order to ensure that you are getting the full value for your home and that you will be completely covered in case anything happens to your home in the future. In most cases, if you find that your home insurance inspection isn’t set at the most convenient or appropriate time, you can always reschedule the inspection for another time when you will be fully prepared to have the appraisal occur. It usually isn’t a long process and will be done in under an hour or so.