08/10/2026
Monday monologue with an insurance person I partner with…
Good afternoon,
Something I’ve been running into quite a bit lately is a good reminder that “satisfactory” on a 4-point inspection doesn’t necessarily mean satisfactory to the insurance carrier.
A 4-point is looking at the current condition of the home’s roof, electrical, plumbing, and HVAC systems. Insurance carriers are looking at those same systems through a different lens: their underwriting guidelines.The inspector is telling us whether the system is currently functioning properly. The carrier is deciding whether it fits within their underwriting guidelines.
Two big examples I’ve been seeing lately are cloth wiring and water heater age.
I’ve had homes with cloth wiring that is rubber insulated, in good condition, and marked satisfactory by the inspector. There may be absolutely nothing the inspector feels needs to be repaired or replaced, but many private insurance carriers still won't accept it. In some recent cases, that has left Citizens as our only option.
Water heaters are another big one. A water heater can be working perfectly, have no leaks, and be marked satisfactory on the inspection, but its age alone can make it ineligible with certain carriers or require replacement. So when you see “satisfactory” across the board on a 4-point, that's definitely good news, but it doesn't always mean we're in the clear for insurance.
If you have a buyer under contract, send me the 4-point as soon as you get it! I’m always happy to review it and flag anything that could limit our carrier options before it becomes a last-minute closing surprise. Thank you for your continued partnership. We appreciate the opportunity to help take great care of your clients. If there's ever anything we can do to support you or your team, please don't hesitate to reach out.
Have a great week!
