Effects of Florida Four Point Inspection on Homeowners Insurance Market

In 1992, after Hurricane Andrew slammed Florida, the Four Point Inspection, which is also known as the Insurance Inspection was created. But it was in 2004 that this inspection began to become popular after a series of hurricanes hit the state. This inspection is required by insurance companies in getting and renewing a homeowner’s insurance policy The Four Point Inspection covers the four most important parts of a house namely: roof construction, electrical & wiring panels, plumbing connection and fixtures, and HVAC (Home Ventilation and Air Conditioning). From that inspection, a report is then made to assess and records the condition of each of the four main elements of the home.

Even though the Four Point Inspection benefits both the insurance company and the insurer, it is undeniable that this is an area of business where insurance companies have lost a lot of money for the past years. For insurers, conducting a four point inspection (especially on homes which are twenty five years or older), would help them charge the owner’s home insurance coverage accurately.  This is quite good to both parties involved for it carefully documents the assessment of the policy life which will help prevent future disagreements and confusion. It also ensures the insurer for a reduced loss risk on home-owner's insurance policies. On the other hand, though Florida has been known for having high homeowners insurance (in the case of four point inspection, the price ranges from $100-$150). However, today, government regulations have already been implemented that allow homeowners to get up to a 50% discount on a home insurance. Well, obviously, policyholders in Florida can truly benefit to this but for insurers this is a disaster. A part from them also says that no matter how strong a house is, still, if a gigantic hurricane strikes it that would still be their big problem. In short, inspections are not a complete guarantee for protection and fewer expenses for insurers.  The implementation of these credits caused these companies to earn fewer profits and thus makes these companies weaker. In fact, for the past few years, debates between the government and insurance companies in Florida have made with the premium discounts as a main issue. Fraud, inspector inexperience, and data entry are also rampant causing insurers become quite alarmed and frigid to issue discounts. Right now, insurance companies are conducting re-inspections that are concrete and unbiased to settle

In summary, the Four Point Insurance Inspection program is gaining in popularity not just in Florida but as well as other state as insurance companies and policyholders recognize the value of the inspection and the savings benefits that it gives. However, negative issues especially in matters of giving discounts are being discussed and settled.