What Are 4-Point Inspections in Real Estate, and Why Do Them?

When buying a new property, it pays to know what four-point inspections are and why they’re important. A 4-point inspection is an assessment conducted by a qualified professional and it’s an integral part of the real estate process.

This assessment looks at the four key elements of the property: the HVAC system, the electrical system, the plumbing system, and the roof. Through a 4-point inspection, potential buyers can identify any major problems, avoiding costly repairs or replacements. This, in turn, helps you decide if the home is worth purchasing.

What Is a 4-Point Inspection in Real Estate?

A 4-Point Inspection in Real Estate is an inspection of a property’s four major systems:

• • The roof
  • The electrical
  • The plumbing
  • The HVAC (heating, ventilation, and air conditioning)

When you take out a homeowners or landlord insurance policy, sometimes the insurance company requires a four-point inspection by a licensed inspector. They need to know what they’re insuring, after all.

During the inspection, the inspector will look for any existing or potential problems with each of the four systems and make recommendations for repairs or replacements as needed. The inspector will also provide a written report of their findings to the potential buyer.

Note that four-point inspections only go so deep into the house. Inspectors focus only on what they can see. Any internal problems require a professional diagnosis and aren’t always caught.

Are 4-Point Inspections Required?

Some landlord- or homeowners insurance companies require a 4-point inspection to ensure that a home meets their standards for coverage. It depends on the insurer and the type of policy you have.

Additionally, inspectors sometimes recommend these in addition to the regular home inspections, as it allows them to dig deeper for you and evaluate more of the home.

What Does a 4-Point Inspection Include?

A 4-point inspection is a quick visual assessment of a home’s major electrical, plumbing, heating, and cooling systems. Four-point inspections are relatively inexpensive (more on that in a minute) and provide potential insurance providers with a detailed look at the condition of a home’s essential systems.

Let’s take a deeper look at the four components of this inspection:

• • Electrical: The electrical system of a home is inspected to ensure it is up to code and functioning properly. Sockets, wiring, switches, breakers, and ground faults are all looked at carefully to ensure the system is safe and functional.
  • Plumbing: Plumbers assess the water supply lines, drain lines, water pressure, shut-off valves, and gas lines.
  • Heating & cooling: The inspector will check the type of heating and/or cooling system, the age of the systems, and assess for any leaking fluids that may indicate a need for repairs.
  • Roof: During the inspection, your inspector will hop up on the roof to gauge the age, material used, and condition of the roof. For approval or to maintain coverage, insurance companies and certain mortgage loans require roof repairs for heavily damaged roofs.

After the inspection, the inspector will provide a written report outlining their findings. Buyers and owners can use this report to assess whether the home is eligible for home insurance or the right buying opportunity.

What Are the Benefits of a 4-Point Inspection?

A 4-point inspection provides limited assurance to potential homebuyers, lenders, and insurance companies that a home meets their criteria. Through a 4-point inspection, a qualified inspector can identify any major issues that need to be addressed in order to meet the requirements of the lender or insurance company.

Accurate knowledge of the home’s true condition

A 4-point inspection is an important tool for homeowners to understand the overall condition of a home before making any big purchasing decisions. With a 4-point inspection, the homeowner can understand exactly what condition each of the major components of the house is in.

Potentially lower insurance premiums

If a 4-point inspection is successfully completed and no major issues are identified, homeowners may be eligible for discounted premiums on their insurance policy. This can save homeowners a significant amount of money on monthly insurance costs.

Identify minor issues before they become major problems

A 4-point inspection helps to identify minor issues with the home’s systems before they become major problems, saving homeowners time and money on future repairs. Homeowners can also benefit from a 4-point inspection by understanding which components of their home need to be maintained in order to prevent any costly repairs down the line.