Avoiding an inspection
“Occasionally, insurance [companies] do not require an inspection for many reasons,” explains Shannon Seel, client services director and licensed insurance agent at Bickle Insurance Services. “Most commonly, the home is new and/or had an inspection done within the last few years. If this is the case, companies may see that the house is still fit for a policy without inspection; however, this doesn’t mean you won’t need one down the road.”
If your goal is to skip an inspection, your best bet is to look for a newer home or one that’s recently been inspected. You can also try to find an insurance company that doesn’t require one. But if you’re considering a home that’s more than 30 years old, there’s a good chance you won’t be able to avoid an inspection.
Things to know before you skip the inspection
In some situations, having an inspection is important and even imperative, Seel says. “You should definitely opt for a home inspection if the home you’re interested in is older, you’re going from one insurance company to the next, or you haven’t seen the home in person and only have photos to look at,” adds Seel.
By investing in a home inspection, you can ensure you understand major issues early on. If you forgo an inspection, there’s a good chance you’ll eventually discover hidden problems that cost you more in the long term.
A home inspection may also help you ensure you’re paying a fair price for your property and give you some much-needed peace of mind.
Appraisals and home inspections
Some home insurance companies will approve you for a policy with an appraisal instead of a home inspection. An appraisal is intended to evaluate the value of a property. It differs from an inspection, which aims to find major issues with quality and construction.
While an inspection can help the buyer by explaining the condition of a home, an appraisal helps mortgage lenders set the loan amount based on the home’s fair market value. An inspection is far more detailed than an appraisal. The latter simply states whether a home is priced fairly.
Keep Reading: The Homeowners Guide to Home Appraisal for Insurance Purposes