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Jul 29, 2011

Home Inspector Insurance – Retroactive Coverage

No doubt when you think about home inspector insurance you are concerned about retroactive coverage. Well lets break this down to a few important points….

1. What is retroactive coverage and why is it important to home inspector insurance
2. Claims Made vs. Occurrence home inspector insurance coverage
3. How do you know your home inspector insurance policy has retroactive coverage

Starting at the top, What is Retroactive Coverage and why is it important to home inspector insurance

Retroactive coverage is an insurance policy that will cover or “pick up” your past years of work and provide insurance coverage for them. In the case of home inspector insurance, retroactive coverage would pick up inspections you have performed prior to the year you are purchasing the insurance for. So, as an example, if you have been performing inspections for 4 years the retroactive coverage part of your home inspector insurance policy would cover the previous 4 years in addition to the upcoming year you are buying the insurance for.

However there is one major caveat……. You must have had insurance coverage for each of those previous 4 years and had no lapse or break in coverage. So when you ask the insurance provider for retroactive coverage they are going to ask you to prove you had coverage for each of the years previous you are asking for.

The above scenario applies only to the Claims Made coverage. There is a major difference between claims made and occurrence which is outside the scope of this post, but will be addressed in a subsequent post shortly.

How do you know if your home inspector insurance policy has retroactive coverage? Great question. You need to make sure you ask your home inspector insurance provider about retroactive coverage. The InspectorPRO Insurance policy for home and building inspectors offers full retroactive coverage. Just make sure you ask for it and provide the necessary documentation to obtain it.

If you have more questions about home inspector insurance retroactive coverage please call one of us at 801.610.2700

3 responses so far

3 Responses to “Home Inspector Insurance – Retroactive Coverage”

  1. Doug on 02 Aug 2011 at 12:04 pm

    Thanks for the post about retroactive coverage. There are some confusing comments floating around about coverage for past inspections.

    Nice to hear they are covered with your retroactive coverage.

  2. inspectorpro on 02 Aug 2011 at 12:06 pm

    Thanks for the comment Doug. Yes our policy does have retroactive coverage. Glad we could clear the air and put the confusion to rest.

    If you have anymore questions, please call the team at 801.610.2700

  3. Home Inspector Expert on 08 Aug 2011 at 1:25 am

    Home inspection is one of the most essential parts of home inspection and requires many things which are necessary. Also, proper inspection assures us proper investment so that we can effectively make deals further.

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