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Got a call today from an older lady who said she needs a home inspection as her insurance company wants a copy before they will let her renew her homeowners policy?? specifically electric, roof and plumbing.... she has a 1920's home.... she could be in deep crap if she is on a fixed income, but can't say I blame the Ins Co.... just haven't heard of this before.

Then I talked to a friend tonite I had done an inspection for in Jan. He said his Ins co wanted a copy of my report back in Jan when he got his homeowners.... and now they called him this last week and said they want him to submit reciepts for electric repairs that were called out in report. He has till Friday to get electric done???

Is there something new in the water as I have never heard of this kind of approach before from insurance companies. Has anyone run into this before ????

Jerry

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Jerry,

I haven't run into this with insurance companies, but recently a "real estate professional", looking out for their clients best interest, submitted my entire report to the under writer. In turn the underwriter, highlighted every little thing I mentioned on the report and made them fix it prior to funding. The underwriter then requested a signed letter from me stating that all items were completed.

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Maybe insurance companies' bottom line is getting so thin these days, after Katrina, after the storms and flooding we've had, with the recession, etc. that they're being a little more picky about what/who they insure.

I had a funny one today. A customer called up and said that the seller had demanded a copy of my hand-written notes. Yeah, riiiiiigggghhhhht. I don't remember signing any contract with the seller that says I have to turn over notes. Hell, even if I did, he wouldn't be able to make heads or tails of 'em. My handwriting is probably the worst on the planet and so bad that a week after I write something I have no idea what it says half of the time. Besides, I use a self-invented shorthand and one or two word notes to key my memory of stuff - it wouldn't mean a thing to him.

OT - OF!!!

M.

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Jerry,

I haven't run into this with insurance companies, but recently a "real estate professional", looking out for their clients best interest, submitted my entire report to the under writer. In turn the underwriter, highlighted every little thing I mentioned on the report and made them fix it prior to funding. The underwriter then requested a signed letter from me stating that all items were completed.

And...???

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Got a call today from an older lady who said she needs a home inspection as her insurance company wants a copy before they will let her renew her homeowners policy?? specifically electric, roof and plumbing.... she has a 1920's home.... she could be in deep crap if she is on a fixed income, but can't say I blame the Ins Co.... just haven't heard of this before.

Then I talked to a friend tonite I had done an inspection for in Jan. He said his Ins co wanted a copy of my report back in Jan when he got his homeowners.... and now they called him this last week and said they want him to submit reciepts for electric repairs that were called out in report. He has till Friday to get electric done???

Is there something new in the water as I have never heard of this kind of approach before from insurance companies. Has anyone run into this before ????

Jerry

That happened to one of my partners. He's lived in the same home with the same homeowner’s insurance policy from the same insurance company for close to 30 years now. Last year they told him that they'd need to do an inspection before they'd renew. So they sent over their own inspector who spent 3-4 hours going through the house. He generated a very nice report with lots of pictures & descriptions of problems. I had a chance to glance through it and if I didn't know it was done for the insurance company, I'd have thought it was a rather well done home inspection report.

The insurance company did not ask him to fix everything, only the most egregious issues.

I don't know if it's a trend. In his case, my impression was that the insurance company was getting nervous about a home that hadn't had a change of ownership in so long.

- Jim Katen, Oregon

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It has become more common with the insurance companies to require this type of inspection. Most of the time they call it a 4-Point inspection, they have been very common along the gulf coast. I have done many for homes that are over 30 years of age. They have become picky and rightly so.

With the insurance companies having lost a great deal of their reserves in investments when the markets tanked over the past year not to mention the storms of 2005 & 2006 they are trying to cut their losses. Most folks don't realize that insurance companies do not work off of the premiums that are paid by their policy holders, they work off of their investments.

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Jerry,

I haven't run into this with insurance companies, but recently a "real estate professional", looking out for their clients best interest, submitted my entire report to the under writer. In turn the underwriter, highlighted every little thing I mentioned on the report and made them fix it prior to funding. The underwriter then requested a signed letter from me stating that all items were completed.

And...???

I charged for a reinspection and completed the letter.
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I would tell my client not to give it to them and I would not share it with them. I recommend that they answer the questions and if the insurance company needs more info, tell them that they can send their own inspector to the house. If they don't like it, get another company to insure the house.

Sometimes we all forget that we are customers of the insurance companies and they need us and our $$.

A few years ago I got a call from an insurance company that was asking for a copy of the report for a house I inspected the year before. I refused to share any info about the house because they were not my client. Apparently the house had a fire. I asked my client what caused the fire and they told me it was an electrical fire (in an area that I had noted needed electrical repairs). I warned them that the insurance company may be trying to avoid paying because they did not do the repair work. I asked them if their copy of the report was destroyed in the fire and they quickly determined that it was burned beyond recovery and there were no copies available.

I was also wondering if the insurance company was looking for a reason to have me share in the repair expense.

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I was also wondering if the insurance company was looking for a reason to have me share in the repair expense.

That makes perfect sense...

"Look here, Mr. Home Buyer, this thing is broken. It's real dangerous. Heck, it might even start a fire. You might want to get that fixed."

...They don't, and now your on the hook for the damages.

You gotta watch those insurance company weasles, they're almost as bad as lawyers.

I say if the underwriter wants a report then I'd be happy to inspect the property again and prepare them a report. Insurance company inspections cost just about twice the residential rate.

Tom

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I was also wondering if the insurance company was looking for a reason to have me share in the repair expense.

That makes perfect sense...

"Look here, Mr. Home Buyer, this thing is broken. It's real dangerous. Heck, it might even start a fire. You might want to get that fixed."

...They don't, and now your on the hook for the damages.

You gotta watch those insurance company weasles, they're almost as bad as lawyers.

I say if the underwriter wants a report then I'd be happy to inspect the property again and prepare them a report. Insurance company inspections cost just about twice the residential rate.

Tom

With all of the 4-Point inspections I have done that were required by the insurance company the homeowner pays for it. The insurance company does not pay for this type of inspection.

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