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“The Home Inspector is Not Required to…”
I stress to home inspectors about the legal importance of religiously following their SOP. I know that some home inspectors exceed their SOPs to “stand out” from competitors, but these “stand-out” inspectors are also opening themselves up to more possible liability. I have read 1000s of SOPs, and a common thread in all of them…
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How Much Does it Cost to Defend a Home Inspection Claim?
“What you do consider the costs to the home inspector for defending themselves against a meritless home inspection claim, considering court costs, attorney’s fees, depositions, and more?” I received this question from a home inspector who was likely surveying the necessity of E&O insurance as a defense mechanism against the possibility of a claim and/or…
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Follow-Up Home Inspectors: It’s a Different House!
You walk into a house that had already been inspected. There’s glaring issues in the basement – a massive crack in the foundation plus some apparent moisture stains. You ask yourself, “How did the initial home inspector miss these easy-to-recognize issues?” It’s a good question, one follow-up home inspectors don’t ask enough. They are too…
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All Home Inspector Insurance Companies Are NOT The Same
Mold identification is not within any home inspection standard of practice, but a home inspector told me that his insurance company settled a mold claim for $250,000. That truly made me question the sanity of the claims executive. Yet, that story isn’t an outlier. Stories like this happen every day, as insurance companies many times…
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Mediation is the Wrong Place for Home Inspectors
Mediation is not a home inspector’s home court. I read countless home inspector pre-inspection agreements that include a clause that in essence states: “any dispute stemming from the home inspection will be settled in mediation.” You, and every home inspector across the country, should strike out that clause from your pre-inspection agreement. Why?
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The Cost of Your Lose-Lose Proposition
The county sheriff arrives on your doorstep. Your heart sinks. A home inspection client of yours is demanding you pay for the bad results that occurred months after your original inspection. Your goal is too be dismissed from this massive claim – which includes you, the seller, the seller’s agent, the buyer’s agent, so on…
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Understand Your True Liability and Risk
Many home inspectors are SHOCKED to hear that their corporate entities (sub-chapter S or limited liability corporations) do not insulate them from personal liability for doing a negligent home inspection. These home inspectors say that their attorneys told them about this protection when they formed their corporations. It’s simply not true. When can a disgruntled…
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The Kamikaze Claimant
One reads a lot of news stories nowadays about people who engage in so-called “self-destructive” behavior. I’m prone to feel sorry for these folks who can’t seem to help themselves, providing that the destructive behavior is self-confined, as well. Unfortunately, that is rarely the case and the self-destructive behavior invariably causes collateral damage to other…
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Charge More When Client’s Attorney Amends Your Agreement
Should you allow a prospect’s attorney to line out the requirement in your inspection agreement about binding arbitration or the one that claims must be filed within one year of the home inspection? Both clauses have value to home inspectors. In this week’s video blog, I discuss the value of these clauses, BUT also detail…
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Disclaimers Are Your Business’ Best Protection
I encourage home inspectors to utilize the proper use of disclaimers – and go into it in some considerable detail – during my Law and Disorder Seminar. A knowledgeable home inspector knows that there are many issues concerning a home-buying decision that are NOT going to be uncovered during a home inspection. Unfortunately, your clients…
