What Will Fail a Home Insurance Inspection? A Complete Guide

As an experienced insurance agent, I often get asked about what can fail a home insurance inspection. Whether you’re buying a new home, renewing your policy, or trying to reduce your premiums, understanding what will fail an insurance inspection is crucial. Insurance inspections are designed to assess the condition of your home, determine potential risks, and ensure it meets the criteria for coverage. A failed inspection could lead to higher premiums, reduced coverage, or even a refusal to insure the property.

In this article, I’ll walk you through the most common issues that can cause a home insurance inspection to fail. By knowing what to look out for, you can take proactive steps to ensure your property passes the inspection with flying colors.

1. Roof Issues

One of the top reasons for failing a home insurance inspection is a damaged or old roof. The roof is one of the most crucial elements of your home, and insurers need to know it can protect your property from the elements.

Common roof issues that can fail an inspection:

• Old or worn-out shingles: If your roof is over 20-25 years old, it may not meet insurance standards.
• Leaks or water damage: Any signs of leaks or water damage in the attic or ceiling will likely cause a failed inspection.
• Damaged flashing: Flashing that is broken, cracked, or rusted around chimneys or vents can cause leaks and fail the inspection.
• Missing shingles: A roof missing multiple shingles will likely not pass the inspection, as this exposes your home to potential water damage.

Pro tip: If your roof is older than 20 years or has noticeable damage, it’s worth considering repairs or replacement before the inspection.

2. Electrical System Problems

Your home’s electrical system must be safe and up to code to pass the inspection. Insurance companies want to make sure there is no risk of electrical fires or malfunctions.

Electrical issues that can fail an inspection include:

• Outdated wiring: Older wiring, like knob-and-tube or aluminum wiring, is often seen as a fire hazard.
• Exposed wires: Any exposed or frayed electrical wires can be a safety concern.
• Non-working smoke detectors: Smoke detectors should be in working order and installed in every bedroom and hallway.
• Improper grounding: A grounded electrical system helps prevent electrical shock and fire. If grounding is improperly done or missing, it may fail the inspection.

Real-life example: A homeowner named John had an older home with outdated wiring. Despite keeping the house in good condition otherwise, his insurer required him to update the electrical system before they would cover his property.

3. Plumbing Problems

Plumbing issues can be a significant red flag during a home insurance inspection. Leaks, old pipes, and water damage can all lead to costly repairs and insurance claims.

Plumbing problems that can fail an inspection:

• Leaky pipes: Visible leaks or water stains in walls, ceilings, or floors could indicate significant water damage.
• Old pipes: Galvanized steel or polybutylene pipes can corrode or break over time, leading to leaks and costly repairs.
• Low water pressure: If there are issues with water pressure, it might indicate problems with your plumbing system.

Pro tip: If your home has old plumbing, consider having a plumber inspect it before the insurance inspection to avoid surprises.

4. Structural Issues

Insurance inspectors will look for any signs of structural issues that could affect the safety or integrity of the home. Serious structural problems can not only cause the inspection to fail but could also make it difficult to find coverage.

Structural issues that may fail an inspection include:

• Cracks in the foundation: Large or growing cracks in the foundation can indicate shifting or settling, which could pose a risk to the home’s stability.
• Sagging floors or ceilings: This may indicate issues with the home’s framework and support beams.
• Water damage: Prolonged exposure to water can weaken the structural integrity of your home and fail the inspection.

Real-life example: A client of mine, Sarah, was shocked when her home insurance policy was denied. The inspection revealed minor but noticeable cracks in the foundation, which required an expensive repair before the insurance company would approve coverage.

5. Safety Hazards

Home insurance inspectors will check for potential safety hazards around your property. Anything that could cause harm to your family, pets, or visitors may result in a failed inspection.

Common safety hazards that can fail an inspection include:

• Missing or broken handrails: Stairs or balconies without proper handrails are a significant safety concern.
• Unprotected swimming pools: If you have a pool, it must be properly fenced and gated to prevent accidents.
• Faulty or missing smoke detectors: Insufficient smoke detectors or improperly placed detectors can fail the inspection.
• Clutter or debris: A cluttered property, especially near exits or pathways, can pose a tripping hazard.

Pro tip: Make sure your home is free of obvious safety hazards, such as unsecured rugs, loose handrails, or unprotected pools, before the inspection.

6. Pests and Infestations

If the home inspector notices any signs of a pest infestation, it could lead to a failed inspection. Pests like termites or rodents can cause extensive damage to your property, and insurance companies want to ensure the house is free from these issues.

Pest-related issues that may fail the inspection include:

• Termite damage: Evidence of termites or other wood-destroying insects can lead to failed inspections.
• Rodent infestations: Rats or mice can cause structural damage, electrical issues, and pose health risks.
• Evidence of mold: Mold often grows as a result of water damage or pests, and it can be a significant issue for insurers.

7. Lack of Proper Maintenance

Even small, neglected maintenance issues can fail a home insurance inspection. Insurance companies want to see that the home has been well-maintained to avoid future risks.

Maintenance issues that could fail the inspection:

• Overgrown trees or shrubs: Trees near the home that could cause damage during a storm should be trimmed regularly.
• Clogged gutters: Poor drainage can lead to water damage and foundation issues.
• Unclean chimneys or vents: A chimney or dryer vent that hasn’t been cleaned can cause fire hazards.

Pro tip: Stay on top of regular maintenance tasks like cleaning gutters, trimming trees, and inspecting appliances to avoid these common pitfalls.

My Final Words: How to Prepare for a Home Insurance Inspection

Preparing for a home insurance inspection involves ensuring that your property is safe, well-maintained, and free of major hazards. Here’s a quick checklist:

• Roof: Inspect for damage and repair any issues.
• Electrical System: Make sure your wiring is up to code and all smoke detectors work.
• Plumbing: Check for leaks and old pipes.
• Structural Integrity: Look for cracks in the foundation and check for water damage.
• Safety Hazards: Remove tripping hazards and ensure proper safety measures (like handrails).
• Pests: Address any infestations before the inspection.
• Maintenance: Keep your home clean and well-maintained.

By staying proactive and addressing any potential issues before the inspection, you can avoid setbacks and secure the home insurance coverage you need.

FAQs: What Will Fail a Home Insurance Inspection?