Changing Insurance Conmpanies

I am looking around for different insurance companies and I had a question come up. If I change companies what will happen with my past inspections? Will my new insurance cover those or does the old cover them? Also while I am on the subject, who in your opinion has the cheapest and best insurance right now? Thanks.


What type of policy do you have right now? Claims made? Or occurrence? If you have an occurrence policy, your prior inspections should be covered for 3-4 years depending on the carrier. If you have claims made, see if the new carrier will offer you retro-active coverage for prior inspections.

If you’re currenly carrying a claims made policy, FREA will offer you retro-active coverage. Call me if you wish to discuss. I can be reached at 1-800-882-4410 ext. 104. Hope all is well.

How much is charged for retro-active coverage? ballpark

ZERO. As long as you can show proof of coverage on a claims made policy with no lapse.

Does anyone know of an insurance carrier that charges less than the $4000.00 plus that FREA charges? Please let me know. It seems that they all know what each other charges and nobody cares what we have to pay.

Also check with

Maybe I have put it this way. Is there an E&O carrier that charges less than the $4000.00 plus that FREA, AllenIns., Target, or any of the others that feel free to charge the same fees for Home Inspector E&O. Come on Nick where are they???

There might be cheaper rates out there. But you’ll get what you pay for. It’s that simple. So do your homework and read everything before buying a policy.


Has Frea ever came up with an Occurance policy that covers the WDO requirements fro Inspectors in Washington State?

No we have not. Our policies, to this point, have been on a claims made platform only. FREA is not adverse to looking in to offering an occurrence based policy, they are more costly however. And it seems like in this market, price is becoming most important.

Thank you Mr. Garrison, I think you just helped me make up my mind about renewing with FREA this year.

So is that to say that you’re not going to renew?


I got my E&O policy with Lexington Ins. It was written through a broker called onestop insurance. For a $1m policy, I paid about $3,200 with all fees. The actual policy itself was $2,500 or so. And, I am a new inspector, I will be shopping next year for hopefully lower rates. I heard through the grapevine that realtors pay like $300 a year for their E&O yet our fees are 10x that. I realize we are more at risk with it but 10x?! That’s crazy. I carry full coverage on 2 SUV’s for 1/3 of what I pay for E&O.

Scott – point of caution. The Lexington policy generally has exclusions for pools and spas. Because you’re in AZ, that could be an issue considering many homes have pools.


Is that a claims made or occurance policy?