TAMPA, Fla. — As Florida policyholders continue to see their property insurance rates climb, one Tampa Bay home inspection company is offering a solution—home inspections.
ABC Action News first told you about a St. Pete first-time homeowner who didn't realize that his inspection was no longer valid. So he got it redone and, in turn, lowered his insurance premium by thousands, quoted from $7,900 to $3,600.
Now, we are tagging along with his inspector, Cliff Turner, of Turning Point Home Inspections.
Turner was inspecting a home for a Tampa homeowner who just got a new roof. The goal for this homeowner, George Toran, was to hopefully get back grant money through the state's My Safe Florida Home Program and also use the inspection to lower his insurance rates. He was paying nearly $8,000 in premiums for his 2004 home.
"That's the goal," Toran said. "Because it jacked up my mortgage $1,000."
4-POINT INSPECTION
Turner took us through the two main inspections he said could bring down homeowners' rates: a 4-point home inspection and a wind mitigation inspection.
A 4-point home inspection includes roof, HVAC, plumbing, and electrical.
"It's much more limited than a purchase inspection," Turner said. "In a purchase inspection, we will go into every little nook and cranny and mold. A 4-point inspection is just to make sure those four systems are in good working order."
Turner said a 4-point inspection usually lasts 30-45 minutes and has a high pass rate.
"On average, I would say it's probably a 70% pass rate, 30% failure," he said. "Of those 30%, it's usually very minor. Usually very quick fixes."
He said the only snag would be the roof.
"Again, a very small percentage would be an expensive roof system," he said. "But again, those things you can't run from. They are eventually going to cost the homeowner much more in the long run."
WIND MITIGATION INSPECTION
Turner said the wind mitigation inspection is more extensive. It looks at several points of your home, including construction year, roof coverings, roof deck, roof-to-wall attachments, roof structure and geometry, secondary water barriers and openings in your windows and garage, and more.
"(If you don't pass) wind mitigation is not going to increase your policy premium. It's only going to decrease your policy payment," Turner said. "Again, it's a little bit more expensive and comes with a bigger price tag, but if it's impact-rated, you get a substantial discount off your insurance."
INSURANCE PREMIUM SAVINGS
Toran paid $22,000 out-of-pocket to replace his new roof, which he said is already saving him thousands of dollars.
Since no one else would insure him previously, he had to get a lender's insurance policy two to three times more than a regular one. He was paying $7,800 a year on his premium.
"Bottom line is I'm paying all this money, and I can't afford it. So I want to pay less money," Toran said.
After replacing his new roof, he just got a new policy, picked up by KIN insurance, with a new annual premium of $3,200.
"I just called and called and called, and one answered," Toran said. "Eventually, you'll find something, but some people don't like to do all that homework."
USE INSPECTION TO SHOP AROUND
Industry leaders have said homeowners need to be their own personal advocates navigating Florida's current state of insurance.
"Getting the clean 4-point inspection and having your agent shop around your policy," Turner said. "That seems to be the ongoing theme that we are from clients. That they have a good agent that will shop their policy around and get the best rate possible."
Also, according to the Insurance Information Institute, 4-point inspections are only valid for one year. Even if your company doesn't require it, experts suggest getting an inspection done every year and using that as a way to negotiate a lower rate for your policy.
Experts say wind mitigation inspections are valid for five years.
"I appreciate you guys coming out and spreading the word. Hopefully, people can get help," Toran said. "We all need it because insurance companies are just out of control."
