Importance of Inspections

A home is often the largest purchase someone will make in their life.  Before making such a large purchase it is always best to have inspections done.  They are a small cost up front to prevent you from getting stuck with large unexpected expenses and even if it comes out clean it is worth it for your peace of mind.  The seller may provide you with a property disclosure in which they disclose any problems they are aware of with the property, but it is always important to have a professional look for things that might not be as obvious to you.  The lender may also require certain inspections.  There are many different inspections you can order for a home; two common ones are a termite inspection and home inspection.  Make sure you know what inspections your lender requires so that you can have them performed within the timeline specified on your contract.   The Department of Housing  distributes this brochure on the importance of inspections “For Your Protection:  Get A Home Inspection.”

Types of Inspections

Home Inspection
A home inspector will look at the structural and mechanical condition of the home and provide a written report on the findings.  The report will include what needs repair or replacement before you purchase a home and often they will make you aware of potential problems that do not need replacement right now but things that should be addressed after the home purchase.  You may ask to be present for the home inspection so you can see directly what the inspector is referring to when you receive the report. Depending on your contract, you can request the seller to make some of the repairs or renegotiate based on the findings.  It is important that you have the inspection performed within the inspection period specified on the contract and that you let the seller know before the end of that time frame if you want to change the terms or cancel the contract.

Termite / Pest Inspection
Many lenders will require a termite/pest inspection or a wood destroying organism (WDO) report.  This inspector will look for termites and pests as well as wood rot or fungus that may damage the house.  Even if this inspection is not required, it is important to have a termite inspection, especially with the hot, humid climate in Florida.

Well Water / Septic / Sewer Inspection
If a home you are planning on purchasing is on well water and septic, the lender may require a well and septic inspection.  In this inspection they test your water and condition of the systems.  It is highly suggested that if the property you are purchasing has a well and septic system that you have it tested prior to purchasing.

 

Homeowner’s Insurance

At closing, most lenders will require you to have a one-year premium paid for hazard insurance or homeowner’s insurance on the property.  Homeowner’s insurance is there to protect your home from natural disasters or theft.  There are many variables in an insurance policy and it would be wise to shop around for homeowner’s insurance prior to purchasing a property.  The cost of homeowner’s insurance will vary based on the different factors of your home and how much coverage you need.  Be aware that a basic homeowner’s insurance policy often does not include flood insurance; you may want to inquire as to whether you’d like to obtain flood insurance.
Possible Factors Insurance Companies May Consider

• Home Attributes – Square footage, age, recent updates, age of roof, etc.
• Fire Protection Accessibility – Home’s proximity to a fire hydrant or local fire station
• Regional Disaster Characteristics – If the area the home is located in is prone to tornados or hurricanes, your insurance will be higher because of the increased risk (in Florida beach homes often have higher premiums than centrally located properties)
• Local Crime Statistics – If your policy covers damage due to theft or vandalism your premium will likely increase if you choose a home in an area with high crime statistics
• Personal Criteria – Some insurance companies might also base your risk factor on personal factors such as level of education or credit scores

Here is a List of Insurance Companies to help you start your search for Homeowner’s Insurance.