Getting homeowner's insurance for new house - they want a copy of inspection report

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CT-Scott
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Getting homeowner's insurance for new house - they want a copy of inspection report

Post by CT-Scott »

We're in the process of buying a new house and I decided to keep things simple and get a quote for homeowner's insurance from the same company (Amica) we're currently using for home, auto, and umbrella. In making it ""official", and requesting the insurance binder sent to the bank we're getting the mortgage through, they're asking for a copy of the inspection report. I hadn't remembered being asked for that previously, and my buying agent thought it unusual and concerning (e.g., if there's something noted on the report that doesn't get fixed, could they use it as an excuse not to pay a claim later?). I went ahead and sent them the report, and will see what comes of it, but am now thinking that I may a couple of other companies tomorrow to get quotes.

Anyone have any insight into this?

Also, any particular recommendations for other homeowner's insurance companies I should call to get quotes from?
Dave55
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by Dave55 »

I have lived in and owned 6 homes in the past 30 years and that never happened. I have Auto Owners Homeowners/Auto/Umbrella and are very satisfied with them.

JD Power has ratings for homeowners here: https://www.jdpower.com/business/press- ... ance-study
and Auto here: https://www.jdpower.com/business/press- ... ance-study

God Luck.

Dave
Last edited by Dave55 on Thu Jul 23, 2020 7:48 pm, edited 1 time in total.
Grt2bOutdoors
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by Grt2bOutdoors »

Call State Farm, Allstate, Travelers, Liberty Mutual. Shop around, what can you lose?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
robphoto
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by robphoto »

When we've had Amica insure our homes, they sent their own inspector. Maybe this is just to save them work where they don't have a lot of on-the-ground folks?
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luap
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by luap »

Just went through the same thing, with the same company (Amica). Nothing out of the ordinary. We sent the home inspection report, and after we closed and were in the home, they also did a virtual inspection via an app called Hover. Since they weren't doing in-person inspections because of COVID-19, you as the insured were asked to take multiple photos of the interior and exterior of the home (the app tells you what to take photos of), and upload. You then received a call in a few days if there were any clarifying questions about the property. It was very quick and easy, and nothing to lose sleep over.
runner3081
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by runner3081 »

Weird. 3 houses purchased, 2 of them as-is, never been asked for that.
TropikThunder
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by TropikThunder »

CT-Scott wrote: Thu Jul 23, 2020 7:37 pm Anyone have any insight into this?
At purchase, we used Progressive for Homeowner's since that's who we were using for auto. No request for inspection. We switched to esurance when Progressive's auto rates went up too much, and they had us submit photographs of the exterior and some of the interior (kitchen, master bath, fusebox). I mainly got the impression that the photos were to make sure the level of "finish" we claimed was correct so that we weren't buying too much or too little coverage, and that the fusebox wasn't a hazard.
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jfn111
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by jfn111 »

I've never heard of any of my clients being asked for the Inspection report. What happens if you waived inspection?
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CT-Scott
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by CT-Scott »

A lot of replies in a short time. Thanks!

Let me add some personal thoughts, as well as some more info as to the concerns that my buying agent expressed...

It actually makes sense to me that an insurer would want to see the inspection report. If the inspector found a fire hazard, and the issue wasn't fixed as part of the sale, if I was an insurer, I'd want the buyer to commit to fixing it. If they didn't, and the house burned down in a fire later, I'd be taking a close look to see if the issue identified during inspection was a factor and, if so, would be looking to deny the claim. That just makes sense to me.

My buying agent basically expressed a similar sentiment, but from a homeowner's perspective...what if something ticky-tacky is noted in the inspection report and we don't address it? Then a problem happens and a claim is filed and the insurer tries to find a way to use an un-fixed issue as an excuse not to pay on the claim?

So I can see it from both perspectives. In my case, the inspection report includes some things that are probably legitimate (but minor/unlikely) safety concerns along with a lot of ticky-tacky stuff. After we got the inspection report we asked the sellers to fix the things we thought were the largest safety issues. We're still waiting for their response, but would not be surprised if they agreed to fix some, offered to give us money back for others, and refused to address some that they considered to be "ticky-tacky". There might be some further negotiation at that point, but I fully expect that we'd end the negotiations with certain things not getting "fixed." At that point, some of those things we might fix ourselves after moving in, and some we might decide that we aren't that worried about and not fix, or put off fixing. And that's where the concern about the insurance company denying a claim (should one ever get filed in the future) come from.
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Quercus Palustris
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by Quercus Palustris »

We've had Amica HO insurance at our current and last house, they requested the inspection report both times but AFAIK never sent anyone for an in-person; maybe this is their SOP when insurance is issued on a house at purchase?

For the current house they asked for some receipts to verify some electrical safety issues were fixed (outdated pushmatic panel, worn off insulation on 50A AC line, etc). They also wanted a receipt for us getting the attic sealed and re-insulated. I totally understand the electrical stuff could have easily lead to a dangerous situation, not sure why they were interested in the attic.
Last edited by Quercus Palustris on Thu Jul 23, 2020 10:43 pm, edited 1 time in total.
LittleMaggieMae
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by LittleMaggieMae »

I had to pay for a "4 point" inspection in order to get homeowners insurance for a newly purchased second home house in Florida. Without the 4 point inspection the insurance was $600 more expensive per year. The inspection report generated a "demand" from the insurance company to have a couple of issues fixed (3 inexpensive DIY plumbing issues I was gonna fix anyway) and proof that they were resolved/fixed (via before and after photos). Since this insurance provider also had the least stupidly expensive policy - I went with it and sent the "proof" of the issues having been fixed.

Also, on a rental property - I again had to pay for a "4 point" inspection to get insurance on a rental condo. The insurance cost jumped 1K - and almost 2K without the inspection. No "violations" were found in the inspection. I've had the unit for 10 years... I keep it in tip top working order.

To the OP, is the house in an area that has recently (last 3 or 4 years) taken storm damage (hurricane)?? Is the house in an area that MIGHT take storm damage? Maybe that's why the sudden need for the insurance agency to see some sort of inspection report.
Mudpuppy
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by Mudpuppy »

When I got my home owner's insurance, I don't recall the company asking for the entire inspection report, but they did require certification that certain safety features were installed. I can't remember if my buyers agent or my home inspector signed off on that checklist. As I recall, the primary safety features on the list were a spark arrestor on the chimney, an earthquake shutoff valve on the gas line, earthquake strapping on the water heater, and basic code features like smoke alarms. The sellers also replaced the wood-shingle roof with asphalt shingles during the escrow period (it was a condition of the contract), so the insurance company would not issue the insurance until the roof was replaced. All of these were perfectly reasonable requests given the common reasons for home loss in California.

The insurance company also occasionally sends me a letter about doing a drive-by assessment of the house. I assume that's just to make sure I'm not trashing the place and I'm doing basic upkeep. They probably also check the state of the roof and look for easily visible hazards. I've never had an issue arise from those drive-by assessments. It's always one letter letting me know someone will be taking pictures during a certain time frame, then a second letter saying everything was fine.
Lalamimi
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by Lalamimi »

That is strange request, but guess they have gotten burned once too often. Was sitting here actually thinking of getting a quote from Amica, think I shall pass. Been here two years, and even the inspector (and us) missed the fact that the 2 doors into the attached garage are just regular doors - in fact, one is a paned glass door. We have had 4 other houses and this is the first with an attached garage. I would still shop around!
penny_ln
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by penny_ln »

Yes, Amica required the inspection report when we tried to insure with them earlier this year. We ended up using a different insurance company, and they didn't ask for it.
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CT-Scott
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by CT-Scott »

Thanks for the additional replies. I decided to go ahead and send them a copy of our inspection report, but am going to try to call a couple more companies to get quotes.

On a related note, the sellers agreed to fix just about everything we asked them to.
smitcat
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by smitcat »

LittleMaggieMae wrote: Thu Jul 23, 2020 10:43 pm I had to pay for a "4 point" inspection in order to get homeowners insurance for a newly purchased second home house in Florida. Without the 4 point inspection the insurance was $600 more expensive per year. The inspection report generated a "demand" from the insurance company to have a couple of issues fixed (3 inexpensive DIY plumbing issues I was gonna fix anyway) and proof that they were resolved/fixed (via before and after photos). Since this insurance provider also had the least stupidly expensive policy - I went with it and sent the "proof" of the issues having been fixed.

Also, on a rental property - I again had to pay for a "4 point" inspection to get insurance on a rental condo. The insurance cost jumped 1K - and almost 2K without the inspection. No "violations" were found in the inspection. I've had the unit for 10 years... I keep it in tip top working order.

To the OP, is the house in an area that has recently (last 3 or 4 years) taken storm damage (hurricane)?? Is the house in an area that MIGHT take storm damage? Maybe that's why the sudden need for the insurance agency to see some sort of inspection report.
"I had to pay for a "4 point" inspection in order to get homeowners insurance for a newly purchased second home house in Florida."
That is specifically for wind mitigation items that may or may not be part of a purchased home.
LittleMaggieMae
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by LittleMaggieMae »

I did have to supply the Wind Mitigation and an Elevation report separately to ALL the Insurance companies for the second home - even the companies that were quoting me policies $600 and higher than the company that wanted the additional inspection. I was able to use the previous owners Wind and Elevation report (which they had paid for when they purchased) for the insurance.

Maybe I'm not calling the "inspections" the correct thing. The lowest cost policy (that was comparable to the higher cost ones) wanted an extra inspection of the roof, AC, plumbing, and electrical - beyond the "house inspection" report used for the mortgage/sale of the house and beyond the Wind Mitigation and an Elevation report.
Broken Man 1999
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by Broken Man 1999 »

FWIW, the insurance companies I have used over the last 10 years or so always reserve the right to inspect my home. They don't always inspect, but they could.

In Florida you can get a nice discount if you have a wind mitigation inspection that shows your roofing material/roof is securely attached. I paid for one, and the report has always been accepted by the various insurance companies.

Sometimes when I changed car insurance, the company would request DW to stop by a location where the vehicle would be looked over.

Fortunately we have had only one initial inspection issue, I had a little rot on a outside door trim piece, door was fine, as it is steel. A neighbor fixed it for beer. Sent the agent a picture, all OK.

Personally I'm glad the insurance companies are making inspections. Seems reasonable to use the actual conditions of a house or auto to make decisions to insure or not, or to offer various discounts.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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8foot7
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by 8foot7 »

I have little problem if an insurance company wants to send their own inspectors out at their expense during underwriting.

I do have a problem with a for-profit insurance company deriving a benefit from a home inspection report I paid for without reimbursing me for at least part of its cost. If they want to use the home inspection report as a valuable part of risk mitigation on their end, they should pay for part of its cost.
bikesandbeers
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by bikesandbeers »

I have never seen a request for the inspection report but I could see it saving time if they let you bypass filling out forms saying number of rooms number of Windows Etc.

When I was updating my insurance after finishing a remodel project, the insurance company did request our contractor sign a form certifying that the plumbing and electrical was all new. With that formed the insurance company could give us a rate based on new systems instead of ancient ones.
bikesandbeers
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by bikesandbeers »

I have never seen a request for the inspection report but I could see it saving time if they let you bypass filling out forms saying number of rooms number of Windows Etc.

When I was updating my insurance after finishing a remodel project, the insurance company did request our contractor sign a form certifying that the plumbing and electrical was all new. With that formed the insurance company could give us a rate based on new systems instead of ancient ones.
egrets
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Re: Getting homeowner's insurance for new house - they want a copy of inspection report

Post by egrets »

robphoto wrote: Thu Jul 23, 2020 7:55 pm When we've had Amica insure our homes, they sent their own inspector. Maybe this is just to save them work where they don't have a lot of on-the-ground folks?
I have AMICA for auto, umbrella, and home. I had the auto and umbrella for years, and changed to them for home when they started writing homeowners insurance again in this coastal area a few years ago. They sent out their own inspector. I had never had a company do that before, but whatever, they are a good company and I saved substantially on the homeowners insurance changing to them
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