What’s the difference between a home insurance inspection and a standard home inspection? While homeowners might be familiar with the idea of home inspections in general, it’s crucial to know how an insurance inspection can differ.
Here is a basic guide comparing home insurance inspections and standard inspections:
Home insurance inspections are required and carried out by the insurance company providing the homeowners insurance policy. Standard inspections, by contrast, are required by mortgage lenders during the homebuying process.
Lenders might not require homeowners insurance inspections, but you do need proof of insurance for final mortgage approval.
Insurance companies use inspections to determine the amount of risk associated with the client’s home. The inspectors examine the property to find potential liability issues associated with its condition or features. They can also use the inspection results to create an accurate valuation of the home to determine the correct amount of insurance coverage to recommend.
Standard inspections are more broadly used, but are most often used to influence and educate a homebuying decision. A standard inspection reports on the quality and condition of the home in many of the same ways. However, these inspections are more concerned with informing the potential buyer of any maintenance issues they otherwise wouldn’t discover until after moving in.
Home insurance inspections are typically free to the homeowner. The insurance provider pays the bill for the inspection itself, but the overall cost may be wrapped into the policy itself.
In the homebuying process, the buyer pays for the home inspection. In some cases, the seller might offer to pay for the inspection as part of a negotiation.
Both of these types of home inspection are something every homeowner is likely to deal with over the life of the property. The more you know about the differences, the more confident you’ll be in discussing the options with your provider.
Licensed since 1983 Donna is a well known and well respected veteran of the local real estate market. Donna has made her mark as both a manager of a brokerage firm and as an agent. Ms. Coakley McGowan has participated in extensive training in residential real estate and specializes in both Buyer and Seller Agency.
"I am extremely pleased to welcome an Associate of Donna’s caliber and expertise” said Judy Leonelli, Owner. "I have known Donna for many years and have admired her professionalism and talent for the pragmatic resolution to the difficulties that can arise during a transaction. When Donna is involved you know there will be a successful outcome.”
Ms. Coakley McGowan has lived in Upton since 1995 and knows the area and all of its attributes. She currently serves the Town of Upton and the Regional School District as Chairperson of the School Committee. She and her husband Mark and their two children reside in Upton.
