Home Inspection News & Articles

Real Estate Home Inspection and E&O Insurance

Honest mistakes happen regardless of a person's level of professionalism, training or good intentions. And certified home inspectors, like everyone else, must take the possibility of error into account every time they climb into their car and head to a new real estate inspection.

Understanding that lawsuits are commonplace these days, home inspectors should look closely at the benefits of Errors & Omissions insurance (E&O). E&O insurance is liability insurance that covers your company if a client claims that you did not live up to the terms of the business agreement.

Future home inspectors should realize that there's more to consider than just the nuts and bolts of a home inspection job when you undertake a home inspection career.

As home inspections become more common, clients increasingly expect home inspectors to go beyond their job description, acting as mold inspectors, building code experts or licensed contractors. A very simple and pain-free way for home inspectors to protect themselves from risk is the pre-inspection agreement, which lays out what you will and won't do during a home inspection.

Yet even a pre-inspection agreement won't cover a home inspector from a wide range of legal action - that's where E&O insurance comes in. It's more reasonable to believe that you might never get sued over a mistake, than to suggest that you and your inspectors won't ever commit a blunder on the job.

Home inspection business without E&O insurance can go belly up after a devastating lawsuit; clients can and do sue for millions of dollars if a home inspector overlooks something that later leads to trouble. A home inspection business with E&O insurance, however, will only pay the policy deductible, which may be the difference between spending a few thousand dollars and a bankrupt business.

People looking at home inspection training should inquire whether a prospective home inspection school has relationships with professional home inspection associations. Some schools offer waived or discounted membership fees to associations, many of which offer reduced rates on E&O insurance. Don't wait until it's too late to protect yourself and your business from a devastating lawsuit.

By Robert Fay, Allied Schools, http://www.homeinspectioncourse.com/

Common Real Estate Inspection Defects by Region

Just like accents, cooking and sports loyalties, common home inspection defects vary by region across the country. Jennifer G. Prokopy in the Jan. 2008 edition of the ASHI Reporter writes about the local inspection variances that keep certified home inspectors from Seattle to Key West on their toes during a home inspection career.

Here's some common things to look out for by region (the list is by no means exhaustive):

Northeast

Damaged roof trusses and I-Joists
Clogged HVAC systems
Ancient chimneys
Poorly installed siding and trim

Southeast

Roofs (damaged from sun and heat)
Termites
Issues with code authorities
Poor workmanship during the recent building boom

Midwest

Poor workmanship during the recent building boom
Moisture intrusion from poor roof jobs
Wood rot
Water in basements
Badly constructed decks

Northwest

Moisture intrusion
Poor drainage systems
Inadequate exterior grading
Wood destroying insects
Poor workmanship in general

Southwest

Improper flashing for shingle roofs
Poorly installed roof trusses (even on custom-built homes)
Electrical wiring issues

Certified home inspectors are certain to encounter regionally-specific defects as the progress through their careers. Yet Prokopy points out that home inspectors should always be ready for that new, surprising deficiency that breaks the mold. One of the best ways to prepare for the unexpected is to receive home inspection training from a quality home inspection school. When you become a home inspector, you'll have to contend with both common and uncommon defects. Home inspector training prepares you for as many scenarios as possible so you'll be prepared for professional success.