Inspections Associtations

[John Adrian Sopher]

As some of you know by now, I'm the newbiest of the newbies right now and I have been trying to figure out the pro's and con's and comparisons of the inspection associations (ASHI and INACHI).  In other words, which one is better?

Oh and on a side note, I have my first inspection tomorrow!!!   

[Jay Markanich]

Check the various association websites!

[Dominic Maricic]

John, congrats on the first inspection, let us know how it goes

As far as association goes, it depends on a couple of factors. For the most part, ASHI's main benefit right now is the name recognition to agents in some parts of the country, and NACHI's main benefit is all the online education courses they have and their message board. Obviously this is just a simplification, but for a new inspector this is what's important. We're affiliates of both and participate with both, they are really different. It also depends on your market. Having the ability to attend chapter meetings is great. In your area there might be only ASHI or NACHI meetings so check that out.

NACHI does allows us to give all inspectors who purchase our software $189 off their first year of NACHI membership which is nice.

There are members of ASHI, NACHI, NAHI and other state associations who use Home Inspector Pro and can probably vouch to what they like best about their association. Many guys wield dual memberships.

[Jay Markanich]

John - In OK home inspector licensing is issued through the State Board of Health --  www.health.state.ok.us/  -- and they require $50,000 in insurance.  If you have insurance needs there are many vendors (FREA is one) but they are expensive until you can prove yourself.  After you have been an inspector for three years or more you can get cheaper, and frankly better*, insurance.  Most home inspectors drop out during the first three years, often because they get sued out of business, and that is why the tables list you as high risk and the premiums are so high.

Virginia requires a minimum of $500K, and I carry $1 million.  But, because of my experience my premiums for $1 MIL are probably cheaper than most who have lesser policies through organizations like FREA.

* With my FREA policies, which I had for 12 years, if I wanted to add myself to my corporation it was an extra premium.  Radon was extra, termite extra, bonding extra, legal defense extra - and so on.  Plus, they won't let you select a higher deductible in order to reduce the premium.  My current policy covers all that with the standard premium, and $1MIL with my current policy is $1500 cheaper per year than with FREA!

Do well on that first one!  I still remember my first - October 1981 and that agent still calls me!

[John Adrian Sopher]

I almost found out the hard way about the insurance issue.  My saving grace was the fact that I own another business in rental properties.  I used that co to show that I have been dealing with Real Estate for the min. three years requirement.

I found a co that insured me for 1 Mil.  I went through Allstate and they set me up through Harford.  My yearly premium is $422.

[Dominic Maricic]

$422 for Errors & Omissions insurance? That seems extremely low. Not that it would be a bad thing, but are you sure it covers everything?

[John Adrian Sopher]

Hmmm I need to look into errors and omissions further. 

Each occurrence $500k, General Aggregate 1 Mil, Products/completed operations aggregate 1 Mil, Personal and advertising injury 500k, fire legal liability 300k,  medical expenses $10k, employment practices liability 5k per claim, and aggregate.  The agent mentioned professional insurance but said that is for Dr's lawyers, etc.

I definitely don't plan to stay with this co, I just had to find SOMEONE for the time being.  I will check into that FREA that you mentioned.

[Dominic Maricic]

FREA is very good but expensive. Obviously All State is a huge company. The other guys would know more about what's acceptable or not. I've just always heard quotes averaging $1400-$3000 a year. If you found a huge company like All State doing it for that price it would be great to let others know!

[Jay Markanich]

John - It does not sound like you have E&O insurance, but a General Liability policy.   I think Dom hit on it - you likely don't have any E&O.  That $422 sounded very, very low.  I have a separate General Liability (including Workman's Comp) in addition to my E&O insurance, which is a little less than that $422.  You probably need to look into that kind of coverage as well.  My current E&O policy, not with FREA this year, cost me $1887.  That represents a dramatic savings!  And it is better coverage than I got with FREA.  I can put you in touch with them, but they are very strict with who they cover and they would want 3 years experience as a Home Inspector, with no claims or complaints.

[John Adrian Sopher]

I would like the name of your co.  I am going to talk to my insurance co first and see if that's something they offer.  I definitely think that's something I should have.  It sometimes amazes me what insurance co try to get away with.  Its a racket it tell you, a racket!  lol

[Dominic Maricic]

I think I remember reading that NACHI members now get free general liability through FREA, but they are still expensive.
You can also contact Bob Pearson at Allen Insurance at bob@allenins.com. Or call him at 1-800-474-4472, extension 201. Tell him I sent you. It's good to get a few quotes going

[John Adrian Sopher]

I'll do that.  My policy should come in the mail any day now.  I'm waiting for that so I can have everything in front of me before I make the calls.  In the mean time I need work!!!  LOL

[Jay Markanich]

John - I ran across a guy on the NACHI site - Wally Glaser at International Placement Services in St. Louis, MO.  My policy is issued through James River Insurance Company.  They really go through an investigation process to make sure you "qualify" (their word) for their policy.  You could mention me, but this year is my first experience with him and it was a couple of months ago - he may not remember me.  He is --  wglaser@ipsico.com  -- or call him at 314-725-8394  ext 278.

I did inspections for many years without E&O insurance, but that was many years ago, before home inspections were as common as they are now.  People had fewer guys to choose from and the risk of litigation was much less.  Now, in Virginia anyway, $500K is required, and many builders will not let me on site with less than $1MIL.  I first got E&O 12 or 13 years ago, through FREA.  You will see that FREA is not only expensive, but their pricing is such that they pretty much force you to get $1MIL.  Until Wally's organization came along policy prices did not vary much between carriers.  Ipsico weeds out higher risk inspectors and offers policies only to those they consider lesser risk, hence the lower price.  That is why they spend so much time investigating people.

So get out there - and do that voodoo that yoodoo so well...  !!  [;>)

[John Adrian Sopher]

LOL Ok thanks.  You guys are a lot of help.  Im lovin this site!!!

[Dominic Maricic]

John - I ran across a guy on the NACHI site - Wally Glaser at International Placement Services in St. Louis, MO.  My policy is issued through James River Insurance Company.  They really go through an investigation process to make sure you "qualify" (their word) for their policy.  You could mention me, but this year is my first experience with him and it was a couple of months ago - he may not remember me.  He is --  wglaser@ipsico.com  -- or call him at 314-725-8394  ext 278.

I did inspections for many years without E&O insurance, but that was many years ago, before home inspections were as common as they are now.  People had fewer guys to choose from and the risk of litigation was much less.  Now, in Virginia anyway, $500K is required, and many builders will not let me on site with less than $1MIL.  I first got E&O 12 or 13 years ago, through FREA.  You will see that FREA is not only expensive, but their pricing is such that they pretty much force you to get $1MIL.  Until Wally's organization came along policy prices did not vary much between carriers.  Ipsico weeds out higher risk inspectors and offers policies only to those they consider lesser risk, hence the lower price.  That is why they spend so much time investigating people.

So get out there - and do that voodoo that yoodoo so well...  !!  [;>)

Mel Brooks Films for $1000

What is Blazing Saddles?

[Jay Markanich]

It's Headley...

[Dominic Maricic]

Headley Lamar if I remember correctly. Amazing how we can divert a thread, hehe.

[David Macy]

In the Blazing Saddles I like the part were the sit around the campfire farting!!
 

John how did the inspection go?

What company did you purchase your E & O thru?  How much was you policy?

[Dominic Maricic]

That would be your favorite scene!

[David Macy]

LOL

By the way I am a member of both ASHI and Nachi.

I will have 5 years this January with Nachi.

I believe it is 6 or 7 years with ASHI

NE OHIO is all ASHI, I am in a chapter of Ashi and obtain most of my CEU credits thru are chapter.

Nachi benefits are the online education an message board as others noted.

Ashi message board is not very good. (Are you going to fix it Dom)

I feel both organizations benefit me.