Insurance Co. sending their inspector to home

[jomama2]

A friend has asked me,as a favor to their friend, to do an inspection of their home prior to their insurance companies' notice that they will send their own inspector to inspect the home, but the notice that was sent did not specify what this person will be looking for. I do not know this person directly, so I have no information, except that the area where this home is located, all of the homes were built in the 1940's and have been renovated within the last ten years. I am assuming that it would be an electrical problem, since most of the homes were worked on by the owners, or you know, by some guy who does electrical work on the side.
Barring any obivious electrical problems and knowing that most of the homes have original wiring, which may be new 3 prong receptacles wired to 2 wire romex, would I be wrong to assume that this person maybe looking for GFCI receptacles or breakers as additional protection?
Question # 2- Has anyone gone through an inspection like this, say, without making an insurance claim? I have never heard of this happening.
Question #3- Is Knob and tube wiring, which can only be inspected where exposed, still acceptable by most local codes or must it be replaced if the house has been renovated past the point of a cosmetic repair,(i.e.- paint, windows, roof etc?)
I am assuming that the owner pulled permits were properly inspected by the AHJ.

I would appreciate any and all input. I would like to go into this with at least a minimal amount of information to at least make some type of evaluation that the owner can use. I think the insurance company is looking for a reason to increase the premiums the owner is currently paying due to past claims on other property in the same situation, and of course to protect lives and property.

Any help?? Thanks to all for your time.

Joe Vignola

 

[petersonra]

Re: Insurance Co. sending their inspector to home

Maybe the insurance company is a little leary of insuring older homes without having a look through first. Or maybe they have had a large number of claims against these type of houses and want to take a further look.

It's also possible your friend did not understand just who is requesting the inspection. Sometimes lenders want/need an inspection if the loan is to be sold to a gov't backed loan pool.

The only thing I am sure of is the insurance company is not inspecting it out of concern for the safety of the owner or anyone else. They have some financial stake and that's what they are protecting.

[ April 01, 2005, 05:08 PM: Message edited by: petersonra ]

 

[stud696981]

Re: Insurance Co. sending their inspector to home

I received a notice from my home owners insurance (Nation Wide) company back at Christmas. My home was built in 1949, I have since remodeled it and brought everything up to code. They stated they wanted to inspect the roof and interior of my home. I contacted my insurance agent and she said this was the first she has heard of this. I contacted the company directly and spoke with a real moran. Long story short I advised them that they were not welcome inside my home and if it was a problem to let me know and I would find another company. Needless to say they waived the inspection.

I think they are just looking for major upcoming issues like roof leaks and obvious fire hazards.

 

[wtucker]

Re: Insurance Co. sending their inspector to home

I did this for a living several years ago. They're not going to spend a lot of time (money) at it, and exactly what they look at will depend on your specific coverage (fire? flood? liability? burglary?) and whether you claim to have alarms, etc. The insurance company pretty much wants to see what it's insuring. If they can't get in, they'll probably do the inspection from the street. Most likely, they'll phtograph the house, then quickly measure the building (for square footage) and describe it. (For example: The risk is a 2 1/2-story wood single-family owner-occupied dwelling with a peaked composition roof and aluminum siding, all well-maintained in good condition. The neighborhood is excellent residential. There is a 500 g.p.m. fire hydrant is across the street, and a volunteer fire company is within 1 mile. Exterior sidewalks and stairs are in good condition and housekeeping is good [this has to do with tripping hazards]. The owner-occupant is apparently not engaged in a home business which would attract foot traffic. There is an above-ground pool, adequately fenced; the pump is on a working GFCI. Plantings obscure window access in the front of the building. There is a centrally monitored (ADT) fire (rate-of-rise indicator over the furnace; smokes on first and second floor hallways) and perimeter alarm (no interior motion detectors), which I tested. Etc., etc., etc.

 

[dillon3c]

Re: Insurance Co. sending their inspector to home

wtucker,
Are you saying Insurance Companies,do not like to see Interior Motion Detectors in dwellings.-Why?

[ April 04, 2005, 03:24 PM: Message edited by: dillon3c ]

 

[lostnyc]

Re: Insurance Co. sending their inspector to home

I'd tell that insurance company to take a flying leap, there's hundreds of others out there more than happy to insure you with out the BS.

I've had a similar issue with an older car, this insurance company actually wanted me to take my car in for a full garage inspection, when I asked WHO was going to pay for this I didn't get a reply, I also didn't get asked twice to do it.

 

[brian john]

Re: Insurance Co. sending their inspector to home

I would contact the insurance company and ask what they would like to see. While you may not have to let them in your house (and this may depend upon your policy) I would be leery of telling them to take a flying leap. Homeowners polices are not being written as freely as in the past. Insurance companies are more that willing to drop someone they think may be shaky or have a questionable home, and getting a new policy may not be that easy.

Insurance companies have taken a beating in the homeowner market, hurricanes in Florida, fires and mudslides in California. They may just be trying to verify they are insuring a safe home.

 

[petersonra]

Re: Insurance Co. sending their inspector to home

I don't think telling them to take a flying elap is such a good idea. And the theory that there are hundreds of insurance companies around is just not true.

All insurance companies share data with each other. If they pull your policy for refusing to cooperate with their requirements, they may well share that with other companies.

 

[stud696981]

Re: Insurance Co. sending their inspector to home

In my case I didn't have to tell them to "take a flying leap." I told them I would be finding a new insurance company and they quickly eliminated the need for the inside inspection.

I have zero claims on my house and a $1000 deductible, so I'm sure there are numerous other insurance companies that would love to pick me up and not hassle me with interior inspections!!!

 

[bthielen]

Re: Insurance Co. sending their inspector to home

In fairness I'd like to side with the insurance companies.

If I was to ask you to insure my property wouldn't you like to do what you could to reduce your risk?

Any time an insurance company has inspected my property I have never had cause to debate what they find. Examples of some items found include: Diesel fuel barrel stored too close to building. Windows too small for safe egress in the event of a fire. Uncovered conduit openings on boxes in my out buildings. Electric fencer kept inside buildings (they have records of fencers exploding when lightning strikes the fence). Incandescent light fixtures too close to stored hay.

As can be seen, all these items not only put the insurance company at higher risk but also added a certain level of danger to my fammily.

Many of these items I wasn't aware existed or posed a risk before the inspection. So it also adds a level of education.

While I may question their cost structure, I don't hesitate to allow them to inspect my home. Why not make it safer for my family if I can?

In some cases, my insurance costs were reduced after I passed their inpsection because I was now considered a lower risk.

Bob

 

[bigjohn67]

Re: Insurance Co. sending their inspector to home

The only time we have seen an insurance company require an update is when a business opens in a former residence as a Bed and Breakfast and the house is wired in Knob and Tube wiring.
Before they will insure it, all k&t wiring must be removed.

 

[wirenut1980]

Re: Insurance Co. sending their inspector to home

When I bought a house last December, one particular insurance company did a drive by inspection and noticed that the roof was not brand new, which my wife and I also noticed. The sellers determined that it was about 8-10 years old. No history of leaking and no visual indication it had ever leaked (still has not leaked). My wife and I got a good chunk of money taken off the selling price to cover the expense of replacing the roof at our leisure. This insurance company refused to insure the house unless the roof was replaced. I said thanks, but no thanks and went to another insurance company. They gave us a policy no questions asked. I guess we weren't "in good hands" after all. :roll:

 

[wtucker]

Re: Insurance Co. sending their inspector to home

Dillon3c wrote:

wtucker,
Are you saying Insurance Companies,do not like to see Interior Motion Detectors in dwellings.-Why?

That was just an example of the type of thing that might show up on a report. They'd note the good and the bad.

 

[mdshunk]

Re: Insurance Co. sending their inspector to home

I am an electrician engaged in mostly old work. I have done dozens of service calls as a result of these insurance inspections this year alone. Many dozens last year. They are generally dinging the homeowner for lack of GFCI's in the kit and bath, and they generally want any EXPOSED K&T removed. They also check all the recs, and want any 3 prongers that show "no ground" refed or replaced with 2 prongers. They also want any obvious hazards corrected (open splices, missing cover plates, etc.) There were several instances last year where the insurance co wanted the 60 amp services replaced. In each instance I relate, this was when the homeowner was either switching insurance companies or just purchased the home and was getting insurance for the first time. All of the work that the insurance company listed was legit, in my opinion. They were the types of items I would have listed if I was to be called out for a safety inspection.

 

[pierre]

Re: Insurance Co. sending their inspector to home

I have noticed a lot of insurance presence in the last year.
For public areas such as retail and apartment buildings, they are going through them and asking for certain work to be upgraded, this is not just electrical work. If this work is not done, they give a deadline and then may drop the customer... you do not want to be dropped, it is a lot more expensive to reinsure. Some say they can't drop a customer, well that does not seem to be the case.

Some of the stuff that I see them asking for should be taken care of anyway.

 

[petersonra]

Re: Insurance Co. sending their inspector to home

Can't really blame them can you? A lot of old buildings have some pretty shoddy stuff in them. My guess is they are starting to realize this and trying to tighten up their practices.

In the long run this is probably a good thing, for multiple reasons, but no doubt will create some pain along the way.

<edited to correct spelling - I absolutely have to learn to hit the spell check button before posting>

[ May 09, 2005, 12:59 PM: Message edited by: petersonra ]