Issues That Could Cause Your Home To Fail a 4-Point Inspection

4-Point Inspections can often be a challenge for both insurance agents and realtors. We frequently encounter roofs that need replacement, electrical panels with problems or in need of an upgrade, and occasionally faulty plumbing issues. To help identify these concerns early and prevent delays in closings or insurance coverage, we've created this useful resource. 

4-Point Inspections are generally required by insurance carriers for homes 30 years old and older. The inspection covers major systems, including the roof, electrical, plumbing, and AC/Heat. This inspection informs the insurance carrier that your systems are in satisfactory condition and that there are no hazards present. Any deficiencies must be corrected prior to binding. Insurance companies will not bind coverage on a property where the risk of loss is heightened by potential hazards. 

Roof Condition

What do inspectors look for when inspecting the roof?

• Inspectors will assess the roof's age by speaking with the homeowner, checking public building records, reviewing any receipts for past roof work, or using their professional judgment based on visual observation.

• Both the exterior and interior of the roof will be examined for signs of leaks or deterioration.

• The overall condition and remaining life expectancy of the roof will be evaluated. Roofs with less than three years of remaining life are typically unacceptable to standard insurance carriers.

• Common issues identified during an inspection include:

  • Broken tiles or missing shingles

  • Wood rot

  • Moisture rings indicating a leak

Electrical Concerns

• Electrical panels have become a significant issue for insurance carriers in recent years.

• Due to past claims, several types of electrical panels have been deemed unacceptable by insurance companies. The following panels, typically installed before the early 1990s, are of particular concern:

  • Federal Pacific

  • Zinsco

  • Challenger

  • Stab-Lok

• Common problems found during inspections include:

  • Electrical service under 100 amps

  • Double taps

  • Over fusing

  • Exposed or unsafe wiring

  • Empty breaker sockets

  • Blown fuses or tripped breakers

Plumbing Issues

Potential risk or acceptability issues:

• Polybutylene pipes

• Corrosion

• Active leaks

• Unrepaired water damage

• Plumbing is not in good working order

• Hot water heater age or sign of leaks

• PEX plumbing