The inspector reports what is observed. The insurer decides whether it will cover the risk on acceptable terms, and the mortgage lender decides whether the policy and property meet the loan requirements. A favorable response from one does not settle every part of the closing.
What the four point is designed to show
Citizens describes the four point as a review of system age, type and condition and identifies serious hazards or deficiencies as matters requiring attention. [1] Other carriers determine their own inspection and underwriting requirements. Ask the agent which current form, inspector credentials, photographs and supplemental records the proposed carrier needs.
This is different from a comprehensive buyer home inspection. It also differs from a wind mitigation inspection, which documents features relevant to storm protection and potential insurance discounts. Confirm the inspections needed rather than ordering one report and assuming it serves every purpose.
The insurance before closing guide provides the broader process. This page focuses on four point findings in a Florida home purchase.
Give each decision to the responsible party
| Party | ** Decision or evidence** | ** What it does not replace** |
|---|---|---|
| Inspector | Observed systems, conditions and supporting photographs | Carrier acceptance or a specialist's repair design |
| Licensed trade professional | Diagnosis, repair scope and completion evidence | Final insurance or loan approval |
| Insurance agent and carrier | Available policy and underwriting conditions | Lender acceptance of the policy and property |
| Appraiser and lender | Applicable collateral and financing requirements | Full insurance underwriting or a buyer inspection |
| Agent, attorney and closing professional | Contract allocation, documentation and timing | Technical clearance of an unsafe system |
Ask for the outstanding condition in writing. “The inspection failed” is less useful than knowing the carrier wants evidence of a repaired leak, a panel replacement or clarification of roof age.
Findings that deserve immediate review
For electrical systems, send clear photographs and the report's description of the panel, wiring and noted hazards. Exposed conductors, unsafe connections, damage or other deficiencies can require an electrician's evaluation.
If the report identifies Federal Pacific or Zinsco equipment, or aluminum branch wiring, request the specific carrier's response and a licensed electrician's assessment. Do not assume every carrier applies the same rule or that a generic repair letter satisfies a requirement for replacement.
For plumbing, distinguish an old material from an active failure. Cast iron lines, evidence of leaks, corrosion, prior repairs or uncertain serviceability may call for further records or a plumber's scope. A sewer camera inspection can answer certain questions but should be ordered for the actual issue, not described as a universal four point requirement.
For HVAC, provide age, operation, maintenance and the identified problem. For the roof, give material, age evidence, condition and any useful life assessment requested. The roof age and mortgage guide handles that topic in detail.
Existing seller insurance does not establish your policy
The seller's current contract may have different eligibility, renewal history, coverage and conditions from a new buyer application. Ask your agent to quote the property using accurate current information.
Disclose the report and known issues before relying on a premium estimate. A quote that assumes no defects can change when underwriting sees the inspection. Ask what remains before coverage can actually be bound for the required date.
Read the proposed deductible, exclusions, roof settlement provisions and any repair requirement, as well as the price. A lower premium may describe materially different protection. The lender must receive the policy information needed for its own approval.
Appraisal acceptance and insurance acceptance differ
The mortgage appraisal is not a four point inspection. An appraiser can report acceptable value while the insurer still requires more information or repairs. Conversely, an insurer's willingness to issue a policy does not waive a lender condition involving safety or structural integrity.
Fannie Mae's condition guidance addresses deficiencies and required completion evidence, while its property insurance rules govern the policy separately. [2][3] Obtain both decisions for the selected loan.
Use the conventional appraisal guide if the lender identifies a collateral condition. An appraisal waiver or value acceptance should not be interpreted as permission to ignore a known hazard.
Choose a cure that the carrier and lender will accept
| Finding or barrier | ** Response to investigate** | ** Evidence to request** |
|---|---|---|
| Unclear system description | Correct or supplement accurate report information | Updated report and supporting photographs |
| Specific repairable defect | Complete approved professional work | Invoice, permit or final approval when applicable, and required reinspections |
| Carrier requires replacement | Obtain scope, price and timing | Installation and completion documentation |
| Carrier declines but condition may fit another | Request a fully disclosed alternative policy review | Written terms and lender acceptance |
| Work cannot finish before closing | Seek an extension or eligible renovation structure | Written program approval and contract changes |
Do not ask the inspector to remove an accurate finding. Correcting an error and concealing a defect are different actions. A supplemental report should describe verified facts.
A seller credit may help eligible closing costs, but it does not complete required work. Do not release repair money or assume an escrow is allowed until the carrier, lender and closing professional approve the actual arrangement.
A repair and payment example
Assume a hypothetical buyer expects $20,000 left after closing under the original budget. Four point follow up produces these additional expenses, none previously included:
| Additional cost | ** Amount** |
|---|---|
| Electrical work | $3,500 |
| Plumbing repair | $2,800 |
| HVAC work | $700 |
| Inspection and follow up documentation | $600 |
| Repairs and documentation total | $7,600 |
| Additional first year premium paid at closing | $2,400 |
| Combined additional cash | $10,000 |
If the buyer pays all of that, $10,000 remains. A separately required $12,000 reserve would then be short by $2,000. The original approval should not be assumed to survive the revised cash requirement.
The premium increase also adds $200 monthly to a simple annual insurance budget. Actual escrow deposits and payment adjustments must be calculated by the lender and settlement team; do not count the annual premium and its escrow treatment as two unrelated insurance policies.
Rework the final cash and payment figures after repairs and insurance terms are settled. A contract price reduction, seller payment or credit changes the calculation only when properly agreed and accepted.
Where Citizens or another carrier may fit
Ask a licensed agent to evaluate current eligibility and available private options, including Citizens when appropriate. Citizens is not an automatic policy for any property declined elsewhere, and its inspection, coverage and other requirements still apply.
Supply the complete findings to each proposed carrier. Moving to another insurer without disclosing the issue does not produce a reliable closing plan. Request lender review of the actual alternative policy before treating the problem as solved.
Avoid spending the final days of the inspection period comparing premiums on incomplete information. The agent needs time to obtain an underwriting answer, not just produce another preliminary quote.
Send this package before the inspection period ends
Provide the complete four point, photographs, general inspection findings relevant to the systems, permits and invoices, roof records, specialist reports and any prior loss or repair information requested by the agent. Include the purchase address, occupancy, expected closing date and lender contact.
Ask for the carrier's conditions, the evidence needed to clear each and the deadline for binding. Give the lender the updated premium and any policy restrictions so cash and qualification can be reviewed early.
If a finding suggests damage associated with an open claim, consult the open insurance claim purchase guide. A repair invoice alone may not explain the claim status or scope.
Escalate in a useful order
First, identify the precise finding and any immediate safety issue. Second, obtain the trade professional's scope and the carrier's acceptance criteria. Third, have the lender assess the condition, policy and revised numbers.
Then have the agent and attorney document who performs and pays for the work and whether closing needs an extension. Finally, collect completion evidence, updated insurance confirmation and the lender's clearance before funding.
If the work cannot meet the timeline, compare an approved renovation product or a different purchase rather than assuming every lender permits repairs after closing. The purchase closing process explains how these conditions fit the larger transaction.
Questions about four point problems
Is an old system automatically unacceptable?
Age, condition, material, documentation and carrier criteria all matter. Obtain a specific response for the observed system rather than a blanket answer based on the year alone.
Can I repair it after closing?
Only if the actual insurance and financing arrangement permits that timing. Required preclosing repairs cannot be replaced with a personal promise to fix the home later.
Does a wind mitigation report cure a four point issue?
It serves a different purpose. Ask which report or completion evidence addresses the specific underwriting condition.
Get the report to the people who decide
Send me the findings and get the same records to your insurance agent early. Then we can coordinate a real cure, a revised cash plan and the contract timing. Waiting for the appraisal to reveal an insurance problem leaves less room to solve it.
The useful starting point is the report, the carrier's written response and the closing date. Those tell us what must happen next.
Sources
- Reviewed October 17, 2026. Carrier criteria and examples are transaction specific.
Citizens, inspections and four point purpose. Confirm current forms and eligibility with the agent.