Mandatory Home Inspections?

My client today was told by their insurance company (Progressive) that they must have a home inspection. I have heard rumors of this but nothing more than that. Has anyone else heard anything about this?

Sounds like a 4 point. Is it an older home?

No, built in 2004 and they required a full home inspection.

Hey Stephen, what state is this in?

As I’ve explained, InterNACHI is working with most major insurance companies now, offering to manage their insurance inspections, supporting their adjusters on catastrophic losses, creating inspection forms, and soon we’ll be providing all the approved continuing education for their claims adjusters. One of the other things we have been doing is pushing for a full inspection before any new policies are written. Progressive is one of the many companies we have been meeting with.

No homeowner’s policies should ever be written without there first being a full home inspection.


Are you getting any resistance from anyone? If it comes down to companies requiring full inspections will we still set our prices, schedules etc.? Will agents still be able to refer us or will we end up on a prefered list?
This sounds great on the front I just hope we don’t lose our industry.

We are losing it anyway. Agents and contractors are moving in on our turf.

I just did one for a lady taking over an estate home. Its strange, the lenders want the buyer to fix everything on the list. Period. Weather or not if its relevent to general maintenance, repairs or just trimming bushes. The lenders don’t seem to understand that some things in the report do not have to be repaired only suggestions for the buyer. I think if you do have one done, you could create a huge mess for some. I personaly dont care if you fix your leaking faucet, and you don’t have to fix it right away, but the bank does not see it that way.

With mandatory inspections comes standardization. With standardization, we become a commodity. With commodities, the lowest price wins. Nick, be careful what you wish for- you may get it.

Nick just wants to sell more stuff… :wink:

Some of my commercial inspections has gone the way to being just a checklist now. It really has removed some of the professionalism from what we use to offer the client. At some point this particular client may marginalize us to the point that they send the service out to bid to see how cheap they can get a checklist done.

Think it out. These are additional inspections to the demand we serve as an industry currently. Should repairs be required by the insurance company, additional re-inspections would also be required.

There will be plenty of work for all if mandatory inspections become the norm IMO. Far more homes in the US than there are inspectors, contractors, agents combined. I’ve done several now in St. Louis where the lender requires the property to be repaired according to my report before they’ll write a loan for the buyer. It’s becoming the norm.

You do not care Wow and here i thought you where a caring individual , I can be wrong, lololol

Insurance inspections, what all are referring to as “full” inspections, are generally related to cost of replacement policies. These types of inspections are quite different, as they ususlly include measurements, providing a drawing of the property, and NOT a typical inspection report. They look for defects that could cause damage to the property. The “report” is often done on-line, and into the carrier’s system, which includes an engine that will calculate the replacement costs of the dwelling based upon square footage (your requirement to calculate and substantiate via drawing), finishes, appliances, ancillaries, etc.

These inspections are paid out at a much lower rate than what we are used to as private inspectors.

So what. This is additional demand (inspections) on supply (inspectors). That is a good thing no matter how you look at it.

The former vice president of a major insurance company told me about the same thing when he went along on one of my home inspections and he bought me lunch. The inspections will take 20 minutes average. The larger paying ones might take 45 minutes. These would be mainly storm damage claims. By the hour it is more than I am making and a lot less liability.

That what does not make sense to me. Lenders do not require inspections (if they do it does not mount to anything) but if a regular home inspection is done they want everything fixed. I have seen this happen a few times with my clients.

That’s like saying “people don’t like yogurt” We now have many lenders requiring full home inspections through and we’re working hard to get insurance companies (like Progressive and Citizens) to do the same.