I was asked by a Realtor if I offer some kind of insurance coverage (policy) to the subject clients buying a house to cover for any eventualities that could occur within a reasonable time frame after the home inspection was concluded.
i.e. Three (3) months later the homeowner have already settle in the house and moved-in. A two day winter windy rain storm passes by and they detect a water intrusion (leak) on top of their SUV hood parking inside the attached garage. They call their Realtor for advice and Realtor calls Inspector to inquire about possible “after the inspection possible insurance coverage”.
The information your report should include by Maryland law:
§16–4A–01.
(a) A licensed home inspector shall give to each person for whom the licensee performs a home inspection for compensation or to the person’s representative, a written report that states:
(1) the scope and the exclusions of the inspection;
(2) the conditions observed during the home inspection that are subject to the adopted standards of practice and code of ethics approved by the Commission;
(3) the license number of the licensee; and
(4) a disclosure in 14–point bold type that includes the following statements:
(i) “An inspection is intended to assist in the evaluation of the overall condition of a building. The inspection is based on observation of the visible and apparent condition of the building and its components on the date of the inspection”;
(ii) “The results of this home inspection are not intended to make any representation regarding latent or concealed defects that may exist, and no warranty or guaranty is expressed or implied”;
(iii) “If your home inspector is not a licensed structural engineer or other professional whose license authorizes the rendering of an opinion as to structural integrity of a building or the condition of its components or systems, you may wish to seek the professional opinion of a licensed structural engineer or other professional regarding any possible defects or other observations set forth in this report”; and
iv) “Only home inspections performed by Maryland licensed home inspectors will be recognized as a valid home inspection under a real estate contract”.
(b) The licensee shall give the person or the person’s representative the report:
(1) by the date set in a written agreement by the parties to the home inspection; or
(2) within 7 business days after the home inspection was performed, if no date was set in a written agreement by the parties to the home inspection.
(c) Any limitation of the liability of the licensee for any damages resulting from the report on the home inspection shall be agreed to in writing by the parties to the home inspection prior to the performance of the home inspection.
Item A tells you what your report MUST include. Part of which is the statement (4) (ii) “The results of this home inspection are not intended to make any representation regarding latent or concealed defects that may exist, and no warranty or guaranty is expressed or implied”;
This is not optional. These statements are required to be in your report in 14 point BOLD type (item 4 above) by law. §16–4A–01
If you choose to offer insurance or warranty such as that offered through InterNACHI ,that is separate from your report and should be contracted separately. You may do so at your own peril!
This is commonly referred to as a Homeowner’s Insurance Policy which the homeowner purchases at the time they buy the house from a licensed agent or broker. Home inspectors, unless they are licensed insurance agents, are not allowed to sell or otherwise provide homeowners’ insurance policies.
Sounds like the new owners are trying to blame the home inspector. After three months I’m sure it has rained and this new leak sounds like it is the result of a storm. You could offer to come and take a look and see if you can help them locate the leak so they can get it repaired. But, unless you missed something this is not your responsibility.
I think many agents default when a client calls to pass it off to the inspector. While a miss is a miss I think standing your ground when you are not is the wrong is also important.
I recently had a listing agent call and want us to buy a new cupboard door. When we did the inspection and left it wasn’t broken, in addition to the Buyers Agent and Buyer being present and in the same room when we inspected that area.
I think the agent was so taken aback when I didn’t immediately offer to pay for it and then just called me a liar even after I sent the pictures and told her to talk to the other agent to had been present. I’ll fix stuff that I need to but we don’t jump at the chance to pay for other stuff that is not our fault or beyond our ability to fully report.
Did you ask the RE Salesperson if they offer an “After Purchase Buyer Remorse” insurance policy when the Buyer finds out the home they bought was not everything the RE Salesperson said it would be?
Isn’t it clever for an inspector to sell a product to cover his/her mistakes? And who produces the warranty? The company that provided the training and inspection certification.
All inquiries are welcome, but those “inquiries with expectations” are the ones to be alert to.
I totally agree! Home Inspectors deliver a valuable set of observations and recommendations, but never a prognosis of future events to occur or not to occur!
I relate this analysis to a similar scenario to be considered when determining any “maintenance” program.
Corrective Maintenance: All activities to restore the system to nominal operation, once it has failed to perform!
Preventive Maintenance: All those activities you do to avoid the system to stop working as expected;
Predictive Maintenance: Everything you do to “predict” (Crystal Ball) when you have no actual historical or statistical knowledge about the nature of the materials, parts, labor and quality controls that were implemented when the system was designed or manufactured nor of the external factors that could affect the nominal operation of the system.
A roof, HVAC, plumbing fixture or the like, could fail at any unexpected time, even a minute after initial installation, and the homeowner is the sole responsible “maintenance manager’ to ensure that those systems are functioning and that are covered with adequate and appropriate warranties, insurance binders and/or that a budget is available to restore the system to nominal operation.
