So, you’ve just found out your home didn’t pass its insurance inspection. Maybe the roof’s seen better days, or the electrical system’s a bit too retro for comfort. Whatever the reason, you’re probably wondering: Can you still get homeowners insurance after failing an inspection?
The answer isn’t always straightforward, so let’s break it down and figure out what your options are.
Understanding a Failed Insurance Inspection
When your home fails an insurance inspection, it’s a signal that something needs attention. Insurance companies conduct these inspections to assess the condition of your property and identify potential risks that could lead to future claims.
If an issue is flagged—say, a damaged roof or outdated wiring—the insurer may decide it can’t offer coverage until it’s addressed. A failed inspection could result in a canceled policy, a denial of coverage, or a request to fix the problems first. It all boils down to the level of risk they’re willing to take on.
Common Reasons for Failing an Inspection
Insurance companies aim to protect their investments, so they’re thorough about spotting liabilities. Frequently cited issues include an aging or damaged roof, unmodernized electrical systems, or plumbing prone to failure. Additional concerns include structural damage or unsafe features, such as an unstable deck.
In areas where weather patterns can vary, insurers might also evaluate how well your home holds up against local conditions like storms or heavy snow. Home insurance proves its worth in these situations by offering protection against unexpected damage, provided you can secure a policy.
Options After a Failed Inspection
Receiving a “failed” notice doesn’t mean you’re out of luck. There are several practical steps you can take to move forward.
Address the Identified Issues
One straightforward solution is to correct the problems noted in the inspection. Whether it’s repairing a leaky roof or updating faulty wiring, tackling these fixes can often resolve the issue. Most insurers typically allow a grace period - often around 30 days - to complete repairs. Once done, you can request a reinspection to confirm eligibility for coverage.
This approach works well if the repairs are manageable and you can act quickly.
Explore Other Insurance Providers
Not all insurers have identical requirements. Suppose one company declines coverage due to a specific concern. In that case, another might be more accommodating. Shopping around can uncover providers willing to overlook certain imperfections, depending on their risk tolerance.
Finding insurers familiar with regional needs is vital. It ensures you can align coverage with your home’s condition and budget.
Consider High-Risk Insurance Options
If repairs aren’t feasible and standard insurers turn you away, high-risk insurance could be the answer.
While these plans may come with higher premiums, they ensure your home remains insured, giving you time to plan long-term solutions.
Is It Possible to Avoid an Inspection?
In some cases, you might bypass the inspection process altogether. If your home is newly built or was recently inspected - perhaps during a purchase - some insurers may waive the requirement. This situation is more likely with homes in excellent condition or when renewing an existing policy without major changes. However, older homes or those with visible wear are less likely to skip this step.
Preparing for a Successful Re-inspection
Preparation is essential if you’re aiming to pass a follow-up inspection or apply with a new provider. Start by addressing any obvious hazards, such as clearing yard debris or repairing minor damage.
Ensure key systems—HVAC, plumbing, and electrical—are in good working order, as these are focal points for inspectors.
Solutions Are Within Reach
Failing a homeowners insurance inspection isn’t a permanent roadblock - it’s a challenge with workable solutions. You can repair the issues and stay with your current insurer, seek out a more flexible provider, or turn to high-risk options if needed. The right choice depends on your circumstances and resources.
Once covered, home insurance offers valuable protection, safeguarding your property against unforeseen events. Take it step by step, and you’ll find a way to secure the coverage you need.