inspection question

[mike mccrea]

hi all newbe here
had a call the other day and first question from the realtor was do i have error and omissions insurance/if u guys had that as the first question how would u respond
buywisehomeinspections.com

[John Adrian Sopher]

That's a tough one.  I don't have any.  I guess what I would say; the state of Oklahoma requires $50,000 general liability and I carry $600,000.

Basically I would be saying blah blah blah to them...  They know the difference and that the kicker.  To be honest, it shouldn't be any concern of theirs.  Its your concern!

[mike mccrea]

yea hi
i get a little freaked when the lawer type customers start their routine
mike

[mike mccrea]

lawyer sorry

[John Adrian Sopher]

Yeah, that's when you know they are up to something.  Like they are planning to get one over on you in the end.

[David Macy]

I would answer any question honestly.

I do carry E&O insurance.

[John Adrian Sopher]

David, the problem is he is new and doesn't have it yet (like me).  What if your new don't carry E&O?  What would you say then?  I think you could say anything in the world but if you don't say "yes you carry it" they are going to read right through all the blah blah blah that you just told them. 

[David Macy]

I was the same when I started and had no E & O. I had this question asked numerous times.

I told them no I don't and they moved on to another inspector. You need to tell them why you are better than your competition. Having E & O does not make you better but the agent feels more comfortable.

See if you can find a realtor hold harmless claus somewhere.

I was lucked out I did not get sued when I was with out E & O.

[John Adrian Sopher]

NACHI has a Realtor hold harmless clause we can use.  I saved it and read through it.  In my opinion, I think it add more liability to us as inspectors and didn't use it.


HOLD HARMLESS AGREEMENT: CLIENT agrees to hold any and all real estate agents involved in the purchase of the property to be inspected harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reasons of acts or neglects of the INSPECTOR or his employees or visitors or of independent contractors engaged or paid by INSPECTOR for the purpose of inspecting the subject home.

[David Macy]

Im am the farthest person from being a lawyer but I would think if you have no E & O and use the realtor clause not only will you be liable for your client you may also be liable for the agent, agents firm.

You know the saying. If you have not been sued you will.

[John Adrian Sopher]

LMAO... E&O is high on my list of things to get.  Whats really crazy is new people like me are the ones that need to the most!  We are the ones that make more mistakes!

[David Macy]

LMAO... E&O is high on my list of things to get.  Whats really crazy is new people like me are the ones that need to the most!  We are the ones that make more mistakes!

Even the best inspector with thousands of inspections can make a mistake.

I make mistakes. Unfortunetly in this business you make 2 many mistakes your out flippin burgers at Mcdonalds.

[John Adrian Sopher]

Oh I'm just saying that your more prone to make mistakes when your new.  I know I make mistakes, luckily they aren't big ones.  But I learn and move on!

And whats wrong with flippin burgers at McDonald's?  Oh never mind I can't even argue against that one.      LMAO

[Dominic Maricic]

Quick story.

Local inspector had no E&O. Inspected a home for an agent who was BUYING the home (always be careful on these ones). He missed the fact the house was built partially on an old river bed and part of the pilings holding it up had been severely damaged. He's not making payments to the agent monthly for his $30,000 mistake. If he had the E&O he'd just be out the $5,000 (or whatever your plan has) deductible. This guy had been inspecting over 10 years too.

[John Adrian Sopher]

Ouch.....  I don't know that I would want to inspect a house a Realtor was buying.  I would think they would nit pick you to death.

[Anthony J. McCloskey]

I'm new to the business and I just picked up E&O it was more than I thought it would be, but they based it on the fact that I was new to Home Inspections.

It sounds like the realator knew about the problem and was waiting for the inspector not to realize there was a problem and then proceed to make them pay!

[John Adrian Sopher]

Anthony, did you have trouble finding your E&O? 

One of the biggest problems I've been running into is that I've been doing this less than three years.  I had that same problem getting my general liability insurance too.  My saving grace is that I own rental property and have had that business for about five years.

[Anthony J. McCloskey]

Not really, I just called a bunch of insurence companies including the one I use for my house and cars. A few said they don't offer anything as far as E&O, Nationwide was really the only one, my agent told me the had to get it from another company who subs from them. When I joined ASHI they sent me a nice packet of information and there were some flyers and advertsements for insurence companies. They were quoting me a minimum of $2500. Nationwide quoted me close to $2000.00 for GL and E&O, less tax, stamping and filing fees (go figure they want your business but charge you for stupid things) which bumped it up to $2400.00. She also assured me that with experience the rates would drop. The GL she had for me instantly with 1,000,000.00 across the board that was about 200.00 per year. I dropped it to 500,000.00 which came to 165.00 per year.

[Rick Maday]

While the E&O question is a legit one,  to be the first question would get my inspector sense tingling. 

What, they didn't care about how much you charged? 

[John Adrian Sopher]

True huh!  lol