The premier source for home inspection news and information. Whether you're a homebuyer or a licensed home inspector, you'll find valuable insight on the world of home inspection training and competency on this blog.
Anyone researching the potential of a home inspection career on the Internet has probably come across some mention of E&O Insurance. And while some might have no idea what E&O insurance is all about, others may think of it solely as something doctors need to combat malpractice suits. The truth is that certified home inspectors need E&O insurance as much as any other professional.
So what exactly is E&O insurance? It stands for errors and omissions insurance, and it covers home inspectors when they are accused of doing a job poorly or not delivering expected results. If a client brings you into court, E&O insurance will handle the legal fees as well as any settlement that is paid out. A legal suit can easily destroy a home inspection business not covered by E&O insurance; astronomical defense fees, coupled with a negative settlement, may be impossible for an independent business to overcome.
Now you may be saying, what if I get excellent home inspection training, learn my profession well and handle each home inspection job with professionalism and care - why do I need E&O insurance? First-class training is good, but you are a card-carrying member of the human race, and that means you will make mistakes. Does it mean your mistakes during a real estate inspection will lead to legal allegations? Not necessarily, but why take the chance?
It's also important to realize that your general liability insurance doesn't cover errors and omissions on your home inspection report - that's what E&O, or professional liability insurance, is there to take care of.
Remember, E&O insurance rates for home inspectors have been steadily rising, so it's important you research several insurance carriers before making a decision. It's also important to make sure that the language in the policy addresses the specific exposure your business may face. Many professional home inspection associations offer discounted rates on E&O insurance.
If you become a home inspector who works for himself, you will have to inspect more than just faucets and chimneys, you'll have to look into insurance coverage the way any business owner would. But not to worry, if you rely on your home inspection courses, industry associations and make yourself a true student of the profession, by visiting home inspection blogs and websites, you should be able to get up to speed with E&O insurance.
Part of the appeal of a home inspection career, arguably, is that certified home inspectors work independently without the nuisance of a boss "breathing down their neck." Although there is some truth to this, it is important that home inspectors listen to their conscience and live by the Golden Rule of treating others (and their property) as they would expect to be treated. This is all the more important, of course, when no one in the house is watching them.
In our own homes, we wouldn't think of tracking mud across the living room carpet or leaving windows open despite a forecast of rain. Licensed home inspectors need to treat each house, first and foremost, as someone's home. This isn't to suggest that there is an epidemic of thoughtless, cavalier home inspectors in America, but sometimes inspectors get busy, and the little courtesies slip.
Bob Golden, CRI, of Safeguard Home Inspection in Roswell, Ga., wrote on this topic in the Sept./Oct. issue of the National Association of Home Inspector's (NAHI) magazine NAHI Forum. He wrote about his practice of checking for anti-tip brackets behind ovens. The process involves opening the oven door and tilting the oven forward with a push from the back. Recently, a homeowner spotted Golden during an inspection and become angry, mistakenly thinking he was mistreating the appliance. The incident reminded Golden that certified home inspectors must go to great lengths to make sure their inspections demonstrate respect for private property.
Golden noted his way of conducting respectful home inspections: "I am so mindful of being careful with a homeowner's property that I make an imaginative presumption that my actions are being monitored by a hidden camera. I always think to myself: How would this look if I were being watched right now?"
In addition to the Golden Rule, individuals considering a home inspection school should carefully research their options online. Potential home inspection students should also become frequent visitors to industry trade group websites like NAHI and the National Association of Certified Home Inspectors (NACHI). Armed with home inspector training, knowledge of the Golden Rule and the resources of home inspection trade groups, how can anyone go wrong?
New home sale figures released from the National Association of Realtors (NAR) have further confirmed that the U.S. housing market is undergoing a sharp adjustment. And while this comes with a host of complications, it presents opportunities not just for careful homebuyers, but also for individuals thinking of a real estate career, particularly for licensed home inspectors.
The NAR reported that existing homes sales in August dropped 12% compared to 2006. In the West, home sales were down an eye opening 21% compared to the previous year. Make no mistake about it, these numbers aren't promising, but as Wall Street traders have known for years - there are opportunities for people who can spot potential in sluggish times.
Even people in Southern California with short memories, recall the massive downturn in the area's housing market in the mid-1990s. As we all know, the market rebounded and homeowners in the Los Angeles area (as well as around much of the country) built up impressive equity in their houses. And while homeowners benefited, so did real estate agents, brokers, real estate appraisers and licensed home inspectors. Allied Real Estate School offers online training for real estate agents and brokers.
The real estate cycle is often compared to peaks and valleys. While we are now in the valley of the housing market, people considering a real estate career can receive their training and get ready to step out onto the peak when home sales come around again. And for certified home inspectors, in particular, their home inspection training and services will still be in demand even if the market is slow to recover; while money is tight, buyers and sellers will look to a quality home inspection job as a form of security.
The fact still remains that millions of homes are bought and sold each year. As the market slips, some real estate agents and licensed home inspectors will exit the business altogether: returning to the steady nine-to-five world or retraining for a new career. When the market rebounds, it will open more career positions in the real estate industry.
Individuals who want to become a home inspector should make sure that the home inspection school they attend is accredited and associated with industry groups, such as the National Association of Certified Home Inspectors (NACHI). There is no substitute for top-notch home inspection training.
Most of us don't spend much time thinking about the state of the doors and windows we use each day, but certified home inspectors don't have that luxury. Their mission is to focus their eyes beyond the obvious and the ordinary and see with eyes honed by home inspection training.
One truism of evaluating doors is that they often give licensed home inspectors a good indication of the overall condition of the house. If a door isn't fitting properly into its frame, it could point to a settling foundation causing the doorframe to shift. A quality home inspection job involves taking the time to check the condition of each door in the house.
These days a licensed home inspector will evaluate doors made of wood, metal or vinyl, with some of them featuring glass panes mounted into the structure of the doors. Reportable deficiencies include items such as damaged weather stripping, air and water leaks or deteriorating trim, flashings or stills. Other issues to look for are doors that don't lock correctly or close without being touched. Allied School's website: www.homeinspectioncourse.com is an excellent resource for home inspection articles and news.
If the eyes are the windows of the soul, then it's fair to say that windows are the eyes of the house. Whereas doors differ somewhat in their material construction, windows are primarily categorized by their use and movement. Becoming a home inspector means you'll identify single-hung, double-hung, casement (open outward like a door), awning and hopper windows, to name the most common.
Real estate inspectors should also understand that many windows have a safety glazing coating the glass. Safety glazing is any substance applied to the glass that reduces the chance of injury if it is broken. It's normally found in places where children, or the elderly, might fall against glass and hurt themselves.
You'll find glazing on sliding glass doors, shower doors and storm windows. Licensed home inspectors may also find security bars (burglar bars) built over the exterior side of the window. All security bars must have a quick-release mechanism that allows residents to exit through the window in case of a fire. A real estate inspection of house windows should note broken glass, damaged window sills or deficient safety glazing, for example.
For the certified home inspectors, windows and doors aren't just something to walk through or look through, but a significant area of the house where their expertise, training and experience is critically applied. When choosing a home inspection course online, make sure the school is accredited, affiliated with industry trade groups and offers live student support.
