Your home is probably one of your biggest investments, so having the right insurance coverage is essential. However, home insurance inspections can sometimes make homeowners feel uneasy, raising questions about their rights and responsibilities. So, can you say no to a home insurance inspection, or is it mandatory? Let's find out.
Is it possible to decline a home insurance inspection?
Technically, yes, you can refuse a home insurance inspection. However, a refusal might lead to the insurance provider:
- Denying coverage
- Cancelling your current policy
- Rejecting future claims
- Raising your premiums
Most home insurance policies have a clause that lets insurers inspect the property to assess any risks. Be sure to review your insurance policy closely so you understand the inspection terms and conditions. If you have any questions or concerns, it’s a good idea to reach out to your insurance company for clarification.
Refusing an inspection can also make it harder to find insurance with other companies. Many insurance providers require a home inspection as part of their application process, and if you have a history of refusing, it might raise some red flags, making it harder to find coverage.
Keep in mind that insurers usually conduct these inspections to assess the risks they’re taking on, and while the process can feel intrusive, it does have benefits. For instance, it helps protect you from unexpected claims or complaints. Basically, inspections are how the insurance company decides the level of risk, so working with them is usually essential if you want to keep or secure your coverage.
Why does the insurance company want to inspect my home?
When your home insurance company sets up a new policy or renews an existing one, they will likely want to assess the risk of insuring your home. Mainly, it's to help estimate your home’s replacement cost—meaning the labour and materials needed to rebuild—and to identify any pre-existing risks on the property. These factors help determine your premium and give the insurer a clear picture of your home’s condition. If you want to try to avoid these inspections, it is important to update your home information with your insurer whenever you make a significant change to your home, such as updating your roof, hot water heater or heat source.
Is a home inspection mandatory?
Home insurance inspections aren’t always necessary, but they can help insurance companies figure out how much home or condo insurance coverage you really need. If your home is older or hasn’t been inspected in a while, the insurer may require an inspection to check for potential risks, like an aging or damaged roof or outdated wiring. There aren’t strict rules about when inspections are done; it’s up to the insurance company to decide, depending on any risks your home might have and the information they need.
For example, if your house is over 25 years old and hasn’t been inspected within the last 10 years, they might ask for a “4-point inspection” (roofing, electrical, plumbing and HVAC) to see if your home qualifies for a standard home insurance policy. They may also want you to have a home insurance inspection if your home has undergone any major renovations or repairs.
Types of home inspections
There are generally four types of home insurance inspections that your insurance company may perform:
Virtual home inspection
This remote option uses satellite images, drones, or even photos provided by the homeowner through an insurance app. It’s a convenient way for insurers to assess the property without an in-person visit.
Exterior home inspection
Often done from the street or your property, this inspection looks at the exterior of your home, along with any accessory buildings like sheds and other structures like fences or pools. This type is especially common for new home insurance policies.
4-point inspection
This standard inspection focuses on four key areas—roof, electrical, plumbing, and heating/cooling systems. It’s often required for older homes with aging systems.
Full inspection
Covering both the interior and exterior, this inspection examines all home systems, including plumbing and electrical, and checks the structure, safety, and any potential liabilities. Full inspections are most common for high-value homes.
What does a home insurance inspection process entail?
Just like how we see a doctor for a regular check-up to make sure everything is in working order, a home inspector does the same for your home. An inspector will come by to do a visual assessment, looking for any safety issues, potential risks, and areas that might need immediate repair or replacement. They’ll usually inspect things like:
- Roof
- Attic
- Insulation
- Windows and doors
- Ventilation
- Interior and exterior walls
- Foundation and structure
- Heating and air conditioning
- Plumbing and drainage
- Electrical systems
- Ceilings and flooring
What is the home insurance inspector looking for?
As we mentioned earlier, a reputable home inspector will be looking for any safety concerns, potential hazards, and areas that might need immediate repair or replacement. Just how much they'll inspect depends on the type of inspection.
During a full inspection, the inspector checks various aspects of the property’s overall condition, from structural integrity—including the roof, driveway, and chimney—to potential safety issues like faulty wiring, plumbing issues, and poor ventilation.
They’ll look for fire hazards, such as broken smoke detectors, old oil tanks, or improperly stored flammable items, and examine heating, ventilation, and air conditioning systems that could lead to water leaks or other damage.
Security features like locks, alarms, and lighting are also assessed to ensure the property is protected against theft or vandalism. Environmental risks, such as flood or earthquake exposure, wildfire threats, and extreme temperatures, are noted, along with any signs of animal or insect infestations, mould, or mildew that could harm the property or its inhabitants.
After the evaluation, insurance companies can get a clear picture of the risks involved in insuring the property, allowing them to offer a home insurance quote that works well for both you and the insurer. You’ll also receive a detailed report of the findings.
Will having a home insurance inspection affect my insurance premiums?
It can. Home insurance inspections can affect both your coverage and your premiums. Insurers use these inspections to get a sense of your property’s condition and any risk factors. If they find certain risks, they might adjust their rates or ask you to make some improvements.
The inspection results can also influence your premium—things like the property’s age, condition, and safety features can all play a role in what you’ll be required to pay. Understanding how inspections impact your coverage and premiums can help you make better decisions about your policy. To find out more, talk with your insurance company or insurance broker.
What if my home fails the inspection process?
No need to stress—there’s no "pass" or "fail" when it comes to a home inspection. However, major issues will likely raise red flags, potentially leading your insurance company to increase your premium or even consider cancelling your policy. The good news is that most insurers give homeowners a chance to fix these problems within a certain timeframe.
If that’s the case, be sure to hire professionals for the work and keep records of all repairs or upgrades. Your insurer will want proof that everything meets the necessary safety standards.
If your policy does end up getting cancelled, you can look for a new provider, though you’ll likely need to go through another home inspection to qualify for new coverage.
How much do home inspections cost?
Home insurance inspections typically cost between $350 and $600, depending on the type of inspection and your home’s size, age, and condition. The price might go up if you need extra services, like mould or pest inspections, radon testing, or a water quality test.
Can I use an appraisal to get home insurance instead?
Maybe. Sometimes, your home insurance company might accept an appraisal instead of an inspection when setting up your policy. However, this is up to the company, and if your home is older, they may still require an inspection, as appraisals aren’t always as detailed.
Appraisals are usually needed when you’re selling your home, applying for a mortgage or HELOC, or refinancing. Since any issues, like structural damage or mould, can affect your home’s value, there’s some overlap between a home appraisal and an insurance inspection.
However, an appraiser’s main job is not to assess your home’s safety but to determine its market value.
Can I use my real estate inspection to get home insurance instead?
No, realtor home inspections and home insurance inspections are different. When you buy a home, a real estate inspector works for you, helping you understand the property’s condition and any issues it may have. For example, they might discover a problem with the furnace, and you could use that in your negotiations to cover repair costs.
A home insurance inspector, on the other hand, works for the insurance company. Their job is to identify risks or safety issues that could lead to a claim, which impacts your insurance rates or even whether the company offers you coverage. If they find outdated electrical wiring, for instance, they might charge you more for coverage.
Looking for home insurance? Reach out to BrokerLink today!
If you're looking to buy home insurance, there is a possibility that you will be required to have a home insurance inspection. But don't worry. Having a home insurance inspection done can give you the peace of mind you deserve. A reputable inspector will be honest with you and provide both you and your insurance company with a clear picture of any risks with your home.
If you have concerns about any issues raised during your home insurance inspection, your BrokerLink broker would be happy to discuss how it could impact your home insurance premium. You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. While you're at it, we also encourage you to take advantage of our free online quote tool that can provide you with a competitive home insurance quote in minutes.
If you have any questions, contact one of our local branches.
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FAQs about declining a home inspection
Can I refuse a home insurance inspection in Canada?
Yes, you can technically refuse a home insurance inspection, but doing so could have consequences. The insurance company might deny you coverage, cancel your current policy, reject future claims, or even raise your premiums. Most home insurance policies include a clause allowing insurers to inspect the property to assess any risks, so it’s a good idea to review your policy closely to understand the inspection terms. If you have any questions, don’t hesitate to reach out to your insurance company or broker.
If you have any questions, contact one of our local branches.
