Real Estate Investment


When it comes to your cherished home or investment property, understanding its condition is pivotal. The 4-point inspection, a critical evaluation of the major systems – roofing, electrical, plumbing, and HVAC – provides homeowners and insurance companies with essential insights. By delving into the intricacies of this inspection process, we can explore its significance, preparation, and differentiate it from a standard home inspection.

Unpacking the 4-Point Inspection

The 4-point inspection meticulously examines four pivotal systems within a house or condominium – roofing, electrical, plumbing, and HVAC. It’s a requirement by homeowners insurance companies before approving new policies or renewing coverage, particularly for properties over 4 years old. This inspection aids insurance providers in assessing potential liabilities and determining the need for costly repairs.

Additionally, prospective homeowners can leverage the 4-point inspection to assess whether an investment property is worth the commitment. Identifying issues during the inspection phase can save future headaches.

Benefits of a 4-Point Inspection

The advantages of a 4-point inspection are compelling:

  1. Swift and Economical: Conducted by licensed professionals, this inspection is a cost-effective and efficient process, often completed within a few hours.
  2. Condition Assurance: For sellers, the inspection helps identify areas that need attention before listing the property for sale.
  3. Preventive Insights: Whether you’re a homeowner or buyer, the inspection averts potential surprises, ensuring peace of mind.

Inspection Coverage

During a 4-point inspection, the licensed inspector scrutinizes these critical areas:

  1. HVAC System: The heating, ventilation, and air conditioning system is assessed for proper functionality, ventilation, and safety.
  2. Electrical Panels and Wiring: Compliance with electrical codes and potential fire hazards are examined.
  3. Plumbing Connections: The condition and potential risks of drain and supply lines are evaluated.
  4. Roofing: The roof’s age, structure, and potential hazards are closely examined, ensuring safety and structural integrity.

Understanding HVAC System

The HVAC system plays a vital role in maintaining a comfortable and healthy indoor environment. The inspector focuses on:

  1. Functional Heating and Cooling: Ensuring the proper operation of the primary heating and cooling unit.
  2. HVAC System Age: While not a pass/fail criterion, the unit’s age and condition provide insights into its longevity.
  3. Energy Efficiency: Units over 20 years old may be recommended for replacement to enhance energy efficiency and safety.

Electrical Panels and Wiring

The electrical inspection aims to ensure compliance with codes and safety standards. Warning signs include:

  1. Ungrounded Wiring: Presence of ungrounded wiring, knob-and-tube wiring, and aluminum branch wiring.
  2. System Appropriateness: The electrical system’s capacity must match the home’s size.

Plumbing Connections

The plumbing inspection evaluates potential water damage risks:

  1. Leakage and Damage: Assessment of potential leakage risks and examining the condition of supply lines and water heaters.

Roofing Inspection

The roof inspection is comprehensive, focusing on critical elements:

  1. Roof Age: The inspector gauges the roof’s age, identifying potential issues like shingle deterioration.
  2. Structural Integrity: Ensuring the roof’s structural soundness to withstand weather conditions.

Preparing for a 4-Point Inspection

Ensure these critical components are in order:

  1. HVAC Operation: Test air conditioning and heating units for proper functionality.
  2. Electrical System: Check for ungrounded wiring and address any code violations.
  3. Plumbing: Inspect for leaks and water damage risks.
  4. Roofing: Repair or replace damaged or deteriorated shingles.

4-Point Inspection vs. Full Inspection

A 4-point inspection focuses on key systems, while a full inspection is comprehensive:

  1. Extent: A 4-point inspection is quicker, examining only essential systems.
  2. Purpose: A 4-point inspection assesses risk for insurance coverage, while a full inspection guides home buyers.

4-Point Inspection Costs

Costs vary by location and insurer, typically ranging from $50 to $150.

Whether you’re safeguarding an older property, renewing coverage, or assessing a potential investment, the 4-point inspection holds immense value. Ready to embrace the peace of mind that comes with a thorough understanding of your property’s condition? Start your mortgage approval journey today and unlock a secure real estate future.

Ashley Richardson
Mortgage Loan Originator
NMLS# 2469971

Mortgage Calculator Company LLC
NMLS # 2377459
Miami, FL, 33137

Ari Lopez
Brokered by eXp

The Mortgage Calculator is a registered DBA of Mortgage Calculator Company LLC. NMLS ID #2377459. Programs and rates are subject to change without notice. Mortgage Calculator Company LLC is licensed in the following states that require specific licensing disclosures: AZ (#1040352), CA CFL (60DBO-171188), GA Georgia Residential Mortgage Licensee (#2377459), IL MB.6761755 Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 1-888-473-4858. Not licensed or conducting business in New York.
The principal and interest payment on a $400,000 30-year Fixed-Rate Loan at 7.250% and 80% loan-to-value (LTV) and 740 credit score is $2,728.71. The Annual Percentage Rate (APR) is 7.417% with estimated finance charge of $5,755. The principal and interest payments, which will continue for 360 months until paid in full, does not include taxes and home insurance premiums, which will result in a higher actual monthly payment. Rates current as of 7/9/2023. Subject to borrower approval. Disclosure: All lending products are subject to credit & property approval. Rates, program terms & conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions & limitations apply.

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