Effects of Florida Four Point Inspection on Homeowners Insurance Market

After the tragic hurricane Andrew crushed the state of Florida last 1992, the Four Point Inspection was then established, this inspection was recognized as the Insurance Inspection. The Four Point Inspection was widely known on the year where numerous of hurricanes hit the state last 2004. This Examination of the property was mandatory as said by the insurance companies when renewing the homeowner’s insurance policy. The Four Point Inspection includes the 4 main parts of the house; Roof, HVAC (Heat Ventilation and Air Conditioning), Plumbing and Electrical System). After the investigation, a report is then created to evaluate and document the state of the four major parts of the house.

Four Point Inspection

On the past years, though both the insurance companies and the insurers are benefited by the Four Point Inspection, still in this part of the corporate, the insurance company lost a large amount of money. For the insurance company, organizing a Four Point Inspection on houses built more than 20 years ago would help them accurately charge the resident’s home insurance. This is equally adequate for both parties concerned for it vigilantly records the evaluation to prevent future disagreements and misunderstanding of the policy life. It guarantees the reduction of the risk of losing the homeowner’s insurance policy but then again, Florida is known for having high homeowner’s insurance (In the Four Point Inspection, price bounds from $100- $150. Nevertheless, the government today have issued an order that countenance homeowner’s 50% discount on home insurance. Clearly, the policyholder of the state of Florida benefit the situation but the insurance company does not. A piece of them keep in mind say that regardless of how well-built the house is, still, if a powerful hurricane comes, there still will be a problem. In other words, the inspection does not guarantee protection and fewer expenses during calamities. The execution of this policy made these companies earn lesser profit that weakens the company.  In effect, the main issue are about the premium discounts on debates between the government and the insurance companies. Because of Fraud, inspector inexperience, and data entry are some reasons why insurers are alarmed and frigidly issue discounts. Simultaneously the insurance company organizes an unbiased and exact re-inspection. 

Briefly,  the Four Point Inspection is obtaining fame not only in the state of Florida but also on other states for policyholders and insurance companies know the significance of the inspection and its given benefits. Nonetheless, there still are negative issues about giving the discounts are still being deliberated and established.