Consumer Insurance Update:
New Citizens Insurance Four Point Evaluation Requirements
You may or may not be aware that as of September 1, 2012, Citizens Property Insurance (Citizens) has changed their underwriting requirements for homes over 30 years old. The following is a highlight of some of the most significant items. I recommend you consult with your local insurance professional about the details of the changes and how they may affect your real estate transactions.
A) All properties over 30 years must now have a Citizens Approved Four Point Inspection.
Following in line with the Wind Mitigation Evaluation process, Citizens is now requiring a uniform Four Point Inspection Form be completed for each property insurance application on properties over 30 years old. The Four Point evaluation requires review of the Electrical; Heating; Plumbing and Roof systems. Click on the link for a sample of the Citizens form. The new form requires photo documentation of each system, including a photograph of the manufacturer’s label on the Heating System; as well as a photograph of an Interior door. I suspect the requirement for the interior door photograph is to verify the Inspector was inside the property.
B) Aluminum wiring requires additional inspection.
Citizens is insuring structures with aluminum branch wiring, but the insurer requires the use of a special connector and approval by a licensed electrician.
C) Defects or hazards are required to be recorded.
Citizens is now requiring that any defects or [potential] hazards be noted on the Four Point form. Defects are fairly easy to identify when performing a general home inspection, but this requirement now means a lot more time will be spend performing “a simple four point evaluation”.
If you sell properties in the 30 year old age range, I recommend you brush up on the new requirements and recommend that your clients request a Four Point form be completed during their general home inspection.