Insurance, 4‑Point Inspections and Your Loan in WPB

Buying an older home in West Palm Beach? One small report could decide whether your lender lets you close on time. If a 4-point inspection raises issues, your insurance binder can stall, and so can your loan. You want a smooth path to the finish line. This guide shows you how 4-point inspections work, how they affect your insurance and closing, what commonly gets flagged, and what to do about it in Palm Beach County. Let’s dive in.

4-point basics: what it covers

A 4-point inspection is a focused, visual check of four systems: roof, electrical, plumbing, and HVAC. It is designed for insurers to gauge risk, not to replace a full home inspection. Most take 30 to 90 minutes depending on the home’s size and condition. You can read a clear overview in this explanation of the 4-point inspection’s purpose and scope from Florida-focused experts at Worth Insurance.

Insurers use the results to decide if they will issue coverage, require repairs, or add exclusions. Older systems and known claim risks tend to draw the closest review. That is why this small report can have a big impact on your policy options and pricing.

Why it matters to your loan

Your lender requires proof of homeowners insurance before closing, usually in the form of a declarations page or an insurance binder. As explained here, lenders need an active policy effective on or before closing to fund your loan, which is why timing matters for buyers in West Palm Beach. Learn what a binder is and why lenders ask for it at Chase’s overview of insurance binders.

In Florida, many carriers will not bind coverage on older homes until they review an acceptable 4-point report. If the report shows problems and the insurer requires repairs first, your binder can be delayed. That can push back closing or force you into short-term, costlier options like lender-placed coverage.

When carriers require it in Florida

There is no statewide law requiring a 4-point inspection. In practice, it is often required by insurers for older properties. Citizens Property Insurance, the state’s insurer of last resort, typically requires a 4-point for many homes more than 20 years old, and it must be completed by a verifiable Florida-licensed inspector. You can see Citizens’ guidance on when a four-point inspection is needed.

Most underwriters expect a recent 4-point when you apply for a new policy. Citizens notes that a report dated within the previous 12 months is generally acceptable for new business. Review the acceptable timing in Citizens’ FAQ on the age of a four-point inspection report.

Roof rules that often drive decisions

The roof is the most common gating item for insurability. Citizens outlines roof age rules that many carriers mirror. Soft roofs like asphalt shingle that are older than 25 years and hard roofs like tile or metal that are older than 50 years often require documentation or proof of at least five years of remaining useful life. Review the specifics in Citizens’ roof age requirements for personal residential policies.

If you or the seller recently replaced the roof, gather proof early. A finalized permit, paid-in-full roofing contract, and clear photos can speed underwriting decisions. Palm Beach County’s Planning, Zoning and Building site makes it easy to look up and download records through the Permit Center.

Timeline to avoid closing delays

Starting early is the single best way to protect your closing date. Many buyers find that a 2 to 3 week head start on insurance makes the difference. See a helpful timing walkthrough in this guide to when to get homeowners insurance during a purchase.

Buyer checklist

• Connect with an insurance agent as soon as your offer is accepted. Ask if a 4-point is likely for your home’s age and type.
• Order the 4-point with your home inspection if the home is older. Confirm the inspector is Florida licensed.
• Gather documents: roof permits, paid receipts, and service records for HVAC, electrical, and plumbing. Send them to your agent promptly.
• If issues appear, get contractor quotes and timelines. Some carriers allow short repair windows after binding, while others require repairs first.
• Check flood status early. If the home is in a Special Flood Hazard Area and you have a federally related mortgage, separate flood insurance is required. Review federal guidance on flood insurance basics.

Seller checklist

• For older homes, consider a pre-list 4-point to surface issues before a buyer’s insurer does.
• Create an “insurability” packet with permits, paid invoices, and photos of the roof and major systems.
• If a repair is needed, line up a licensed contractor and document the plan to support buyers and underwriters.

Common issues and practical fixes

Roof

• What gets flagged: advanced age, missing shingles or tiles, evidence of leaks, heavy patching, or no permit history for a recent replacement.
• Typical fixes and timing: small repairs can be completed in days to weeks. Full replacements take several days plus permit time. Costs vary by size and material, and can run many thousands of dollars. Permits and paid receipts help insurers finalize decisions.

Electrical

• Common red flags: aluminum or knob-and-tube wiring, recalled or obsolete panels like some Federal Pacific or Zinsco, double-tapped breakers, missing GFCIs, or lack of grounding. Inspectors and insurers watch these closely due to fire risk. Learn more about aluminum wiring concerns from InterNACHI.
• Fixes and timing: minor corrections by a licensed electrician can be quick. Panel replacements or partial rewires take longer and can be more expensive. Always use permits and keep receipts for underwriting.

Plumbing

• Common red flags: polybutylene supply lines, active leaks, very old water heaters, or corroded valves.
• Fixes and timing: replacing a water heater or repairing a leak is often fast. Full repipes require more time and budget. Documentation and photos help insurers clear the file.

HVAC

• Common red flags: very old or nonfunctioning systems, visible leaks, or no central cooling where expected for the home type.
• Fixes and timing: many repairs are quick. Full system replacement typically costs several thousand dollars in Florida and may require a permit. Coordinate timing with your closing calendar.

How insurers may respond

If the 4-point finds issues, carriers generally choose one of a few paths. They might ask for repairs before binding, offer a short conditional binder with a repair deadline, exclude a specific risk, or decline and suggest alternatives like Citizens or surplus lines. Your insurance agent can match the situation with the right path, and your real estate team can help keep the closing timeline realistic.

Local resources to keep handy

• Citizens Property Insurance pages for four-point and roof rules
• Palm Beach County Permit Center for permits and approvals
• FEMA Flood Map and NFIP basics if flood insurance applies

Need a game plan for your West Palm Beach purchase or sale? Talk with the local team that has guided South Florida clients since 2001. Reach out to Power Duo Group for practical, step-by-step help coordinating inspections, documentation, and timelines so your transaction stays on track.

FAQs

Is a 4-point inspection legally required in Florida?

• There is no state law requiring it, but many insurers require a 4-point on older homes, and lenders need an insurance binder to close, so it becomes effectively necessary for many transactions.

How long is a 4-point report valid for new policies?

• Many underwriters expect a report dated within the past 12 months for new policies, consistent with Citizens’ guidance.

Can failing a 4-point stop my West Palm Beach mortgage?

• Not directly, but if you cannot secure an acceptable insurance binder, your lender can delay closing or pause funding until coverage is in place.

What are the most common 4-point deal killers?

• Roof age and condition, recalled or outdated electrical panels, polybutylene plumbing, and nonfunctioning or very old HVAC systems are the most frequent issues insurers flag.

How early should I start the insurance and 4-point process?

• Start 2 to 3 weeks before closing, line up your insurance agent, order the 4-point if needed, and gather permits and receipts to prevent last-minute holdups.