Unlawful or just Unethical?

[Michael A Clark]

I was recently contacted by a large Contract Company that hires inspectors, yard workers, maintenance guys, etc., mostly on REO properties or bank owned. Not full blown inspections, but verification of occupancy, or repairs made, or grass mowed,maid service, etc. They claim to give out 200 or more per month in my area. These "drive-bys" pay an average of $10-$15 each. Not much, but if one could do, say 10 per day, it may be worth it, and I need more business. My issue is their REQUIREMENT for you to drop your present insurance, and buy one of three choices of insurance companies they approve. A link to each company is "conveniently" provided within their vendor application. I had a real issue with this. For one, I like my local insurance rep. My state does not require E & O, only GL. This company requires E &O and require my purchase of it from THEIR company, and my promise to switch when my insurance comes up. This sounds unlawful to me, and if not, at least it seems unethical. Are my standards too high about ethics? I opted out, solely because I don't want to change insurance, and I'm not busy enough to purchase E & O. When I get busier, I realize the need for E & O, but I don't want anyone telling me which company I HAVE to use? Anybody see it differently than me? 

[Dominic Maricic]

That is a little odd that they'd require specific companies. Were they well known inspection E&O carriers at least?

[Michael A Clark]

I'm not sure,Dom, but I went to one of the websites, and they seemed legitimate, but we all know that doesn't mean much. I think they were all based out of New Jersey. Just for kicks, I filled out the "request a quote" form, I expect they will call or email me during the business hours of the upcoming week.

[Aaron Howard]

That sounds like what I call conveniently odd. The fact they require or accept E&O from only 3 providers makes me wonder if there is a kickback in the works. Why would you need E&O if you are driving by and making an observational determination? Keep us posted.

Aaron

[Michael A Clark]

My thinking exactly, Aaron. They are not all drive by's, some are verification that insurance work has been performed, or even a maid service was performed, which would require entry into the home, though none are "full blown" inspections. I can see why some companies would require E & O, and though I can't afford it now, I think E & O is or will become a necessity for any Home Inspector. My problem is only accepting this insurance from "their" approved companies. If I need E & O, then I will choose my provider, thank you. I'm like you-sounds like kick-backs or maybe this company owns or has interest in these 3 selected insurance companies. If it looks, feels, smells, and acts like a rat-it's probably a rat!! www.safeguardproperties.com

[Aaron Howard]

I lucked into already having E&O as it was required (through any provider of my choosing) to do the Wind Mitigation Inspections here in Florida. I was in contact with a company similar to what your talking about through an add I found via Craigslist. It turned out to be a no go, after a few emails it was clear these folks didn't have their act together.

Aaron

[Michael A Clark]

This company says they will provide about 250 per month in my area, and average 10-15 dollars per inspection. I can't imagine that many, especially in WV. And the area is quite large, given the terrain here. Some areas can be 40 miles, but 2 hours with hills and winding or even dirt roads. And I sure don't want to drive up on a meth lab or the brothers from Deliverance!!
How goes business in Florida? I lived in Jax from 04-09 (lived in Orange Park, and in Callahan, worked in Jax) for a major back up power generation company there. Missed the mountains and family, so I moved back. I don't miss the fire ants or the continuous blatant crime in Jax!! Hurricanes and Tropical Storms were big moneymakers for us, never heard of Wind Mitigation. I would imagine that keeps you busy. And welcome to HIP. There are some great guys here. Have you been linking?

[Aaron Howard]

You can't deny that the numbers sound good, always dived it in half and see if they still sound good. If so, then find about the E&O they offer and compare it to what you find on your own. I LOVE WV, the people are very nice (IIRC) the snow skiing is great (for the East Coast). Yes the terrain would have to be considered for sure, I find that mountain miles always took 2-3 times as long to cover because the speed limit was reduced to 30-45mph. The company I'm subbing the wind mitigation inspections for require E&O and while they didn't require a specific carrier they reccomended two, I went with the less expensive one and he proved to be cheaper than anything I could find even the current GL policy writers I had.

Wind Mitigation is what the inspection is called for Wind Storm Insurance Policies. If you have a Mortgage you must have wind coverage. The hurricanes generated this wind coverage $$$. So there is a huge overhaul to all policies to make certain they have what the previous reports say the have. Impact rated windows and doors, impact protection, roof deck nailing pattern, nail size, decking thickness; roof to wall connection, truss spacing, roof geometry and the list goes on.

Yes the storm are BIG money makers for us as well, we are a small construction company. Every time I hear there’s a storm brewing my ears perk up like a dog and I get antsy.


What is linking?

Aaron

[Michael A Clark]

Linking with other inspectors that have quality sites make your site more "relevant" to the search engines. It's probably best to go the HIP home and look under Website Optimization, then go to the linking tutorials. Or go to Search Engine Optimization category on this message board (at the bottom) and read through it to get an idea of what it's all about. I'm probably one of the least experienced computer guys on here, but I'm learning. You will find as you read across the message boards there are at least a dozen or so senior or hero members that go out of their way to be helpful to everyone, so never be afraid to ask anything.