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Dec 06, 2011

Home Inspector Insurance – How to Avoid Claims….

How to Prevent Claims

As an insurance company, we know that even the most skilled and thorough property inspector can have an incident. Having defended numerous inspectors we have found there are a few precautions you can use to both reduce the chance of being sued and help prove your innocence when you are sued. We hope the following recommendations will help reduce your legal exposure.

2 Tips for Claim Prevention

1. Training: In order to stay current and up-to-date with industry trends and changes the professional home inspector is constantly learning. If you are not presently a part of a continuing education program through either an association or franchise it is important to proactively seek additional training. While most of the basic fundamentals you have learned do not change, building materials and construction defects do. Beginning in 1980 few people were concerned about EIFS, now in some regions it is a major concern and may prevent a home sale. Investing in yourself and your team’s education is the number one way to reduce claims.

2. Consistency: Inspectors who use varied reports, numerous agreements and documents sporadically will have a diffcult time when sitting in the defendant’s chair. Consistency can be essential during litigation, as it shows no deviation from your Standard Operating Procedures (SOP). This is especially crucial for companies with more than one inspector. Consistency also applies to contracts and agreements as well; all pre-inspection agreements must be signed, all contracts must use the same language, all reports must come from the same template or software program. To reemphasize – the use of consistent language is essential. The language, so long as it is clear and understandable to the general public, can be less important than simply using it consistently. For example: If three pipes leak with hairline cracks it is inconsistent to call one a ruptured pipe, the other a cracked pipe and the third a leaking pipe. Consistent language in each and every inspection will help protect you.

As we mentioned earlier, even the best inspector can have an incident or claim. That’s why we carry insurance. Even the best of us can make mistakes and when they occur our insurance company can step in and defend us through to resolution. If you want to see what we have to offer submit an application for home inspector insurance. Or give us a call at 801-610-2700.

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