We always book the wind mits and four points with the home inspection. We collect the data and tell the client if WE believe it will affect their insurance. They at that point have the option to cancel the insurance inspections without a charge.
Inevitably some believe they still will be able to bind the insurance and want the reports anyway. Some will refuse the insurance inspection from the beginning, but we always collect the data during the home inspection.
We offer a discount if the the insurance inspection is written at the time of the home inspection and charge for return trips. Explaining all of this before the home inspection is always best. Tanking the time to explain all of the options and directing them to an insurance agent has advantages.
Yes, that is what I do as well, I do not believe in charging a client for something they do not need. Of course there is the client who’s insurance company demands a 4-point on a 12 year old home after the Hi has been done, and I will send that out with minimal charge (it takes only a few minutes to transfer the data and photos).
I sure does, they in return send us work. It is called a business relationship. They send us business and we send them business, works well.
Here is the best part, when somebody does a poor inspection we sometimes get to see a copy and we help them work through it. We then develop more clients and agents with referrals for work we did not even do.
So where is the New report or press release? Do we actually know who these people were? **Yes, we know the inspector who got called back to the house. He is the one who did it right. He would rather not have his name released at this time. This happened last Monday. There has been no press release yet as, I guess, they were hoping to have the fraudulent inspector there. Investigation is still going on as far as I know.
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I do not see why they would not just reject the report and require another or re-inspect with a preferred provider. **As explained, the insurance company was called when a claim was filed for a leaking roof. These insurance companies take these reports at face value. They only find out about the fraud when claims are filed. I did not know there were preferred providers for 4 points, except by Peoples Trust, as they send their own inspectors out. **
This is a great post and a subject matter that I have wrestling with for the past month I’m trying to figure out what would benefit my company and the client while keeping our standards of ethics.
At first I would book a due diligence inspection and communicate the discounted fees for any ancillary insurance inspections. During the inspection take all the data and photographs for insurance related inspections. I would then submit the due diligence inspections report and communicate with my client about any requests for ancillary insurance inspection reports and whether we believe those reports would be beneficial. Nine times out of ten the four point inspection would be declined because of adverse findings on older homes. Seven out of ten times the wind mitigation reports would still be completed to bind insurance. This method seems to be the most popular here on this post and certainly appears to be the most ethical, however……
I then started to think about the time and work it was taking me to compile that information and the time to educate (consulting time) the client. Data collection on four points does not take too much time maybe 5 min but more about the wind mit adding 15 to 20 min per inspection. So we recently changed our policy to charge and write the insurance ancillary inspections at a discounted rate from a standalone no matter what findings were uncovered during the due diligence inspection process. I am not saying this is the right way but I am getting tired of working for nothing and giving away my expertise for free, so……
Here are some questions for all to ponder.
Are we not generalist inspectors, fact finders, report writers and consultants?
Should we be rendering opinion on whether or not an underwriter is or is not going to underwrite a particular property because of adverse findings of fact?
Should we render an opinion on whether a home will or will not get enough mitigating credits to warrant the expense of a B1-1802?
Should we not be paid services that we may provide including collecting data and taking photographs and consulting? Time is money after all and if you add up ¼ hr. on 50 inspections that’s 12 man hours!
I always want to feel good and sleep at night but I also feel I need to be rewarded for the services that I provide
I feel that as professional and an advocate for my client, I have the expertise to help them decide where and when they will need the additional reports. I charge accordingly but will not sell them something that is useless to them and a waste of my time.
If they are not present and they ordered the wind mit and four point it will usually get written and they will be charged because that is what was agreed upon. Occasionally we will note not to do them if there is a show stopper.
Here is the trick, many many times they will hinder the home buying process but will not stop it and I will be called to do it anyway at some future point. It is at that point I just had much of the work done already.
They also know based on our conversation that there is a discount to do it with the home inspection, a charge for re-inspections and they pay full price if done at a different time.
UPC has been sending in a third party for four points paid for by UPC. Pretty sure they are using NRS for management of this since Summer of last year. Paying picture takes around 20 to 40.00 just to take the required photos and then they decide on any issues observed.
My guess is that somehow, something went awry with this house/policy in terms of some sort of claim large amount dollar wise to make them do a double take. Some of the larger companies have in house special investigative units where if there is a claim, and a large one that ends up costing them alot of money, will have their investigators review the risk as to why the policy should have not been wrote in the first place and investigate those that had a hand in it happening, especially if done fraudulently. Most of these cats are retired or ex police, cia, fbi investigators who have the personality of a cheese grater and who got out of the cop biz or retired for something way easier, but as it’s already been said, do your job and you can rest easy.
Not being sarcastic either 