Client states I missed damaged HVAC ducting

General Inspection Topics Legislation, Licensing, Ethics & Legal Issues
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Hi, this is a first for me - a client reached out 3 months after the inspection stating that the ducting in the crawlspace was damaged by rodents and some ducting connectors were separated. He asked if I had errors and omissions insurance (I do have it). He says he got an estimate of $7000 to repair/replace the ducting and wants to be compensated for the cost.

When inspecting the crawlspace there were no visual damages of the ducting in the crawlspace and no signs of rodents. However, I reported mouse droppings in 2 areas inside the house. Also, there was s lot of moisture in the crawlspace and floor insulation was hanging loose and had fallen to the ground.
He had an HVAC team go into the crawlspace and they took pictures of the damages, which he sent me The pictures I took were unfortunately only a few and did not show any damages (I usually take pictures of things that are faulty etc and so in this case, don’t have pics of the entire crawlspace, specifically the areas the sent pictures were supposedly from). Lesson learned to take pictures of everything!

Is it possible that in 3 months time, the rodent population could have grown, found ways into the crawlspace and damaged the ducting?

Is it possible that the moisture in the crawlspace could have loosened the tape that kept the ducting pieces together and by turning on the heat, by the force of the air, the ducting could have then separated within a 3 month time span?

Any advice on how to handle this situation? Any legal advice?

Any advice is highly appreciated!

Thank you,.
Harald

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Your insurance likely requires you to notify them immediately if a demand has been issued. This sounds like a demand. Not notifying your carrier may leave you with no coverage.

They’ll tell you what steps to take. If you try to squash this yourself, you may or may not be successful.

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Hi Brian, thanks for your reply. I feel like that it wasn’t a demand yet, but it’s obvious that he is looking to find compensation and he most likely will demand that at some point. Will involving my insurance have any negative effect on my business?

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In my opinion that is a demand.

Not addressing the concern properly could result in bad reviews or additional cost if you are sued.
Your insurance rates could increase, that’s a question for your carrier.

First things first, I would return to the property and make your own assessment and documentation. Be kind, patient etc. make no commitments or accept any responsibility. It’s just a fact finding mission.

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5

He demanded money so it is an obvious demand. You should turn it over to your E&O carrier immediately and allow them to handle it given what little you told us here.

With regards to your questions on “months” yes to both. Rodents can increase in population just by migration and ductwork tape on the edge of life can fail that way.

The big question I have is do you, at every inspection, and as a matter of procedure, check all supply and return registers for activity and possible issues? Consistency can help with problems such as these especially if you have previous reports displaying issues while doing this.

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Once a rodent get a taste for ducts and such, it can be a matter of hours and they will and can really tear up a system. I can’t really speak to what you need to do legally, I’m just adding that rodents can make a right mess of things quick and 3 months is plenty of time.

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It would likely be fairly obvious if the damage is fresh or has been present for a while. Go take a look. If it looks very fresh, get pics to give to your insurance to help fight it. If it looks like older damage decide if you will turn it into insurance or pay out of pocket. Also, make note of whether you were able to safely access the area of damage at the time of inspection. Crawls can have many limitations.

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No, but failure to notify them of a demand for payment will. You will be in breach of your contract with them, they will have the option to deny your claim, and your business will be out $7,000 in revenue. Of course, if you have a $5k or 10K deductible, you’re out-of-pocket anyway and it would not make that big of a difference.

In the future, you might consider against publishing these questions in the public domain where your customer, your insurance company, and opposing attorneys can read along with everyone while you consider your options and make your decisions.

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That’s a demand

That’s ridiculous

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Talk to your insurance company… I sincerely doubt that rodents did $7,000 in damage. The HVAC company the client is talking to seems to be lacking in integrity (not unusual), proposing that the ducting needs to be entirely replaced, instead of being simply repaired as necessary. Your insurance company should be able to guide you through every step in your defense.

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11

Well that is youtr first defence. The Inspection if for the time of the inspection only.

Ask them for documentation of how they handled this. It is obviously a direct association to the complaint.

You are not required to report or document what is not a “significant Issue”. See your SOP.

Exactly.

First, you ask them for a written statement (email is fine, actually best) of their formal issues. Do not discuss anything or try to fix it over the phone. Keep your mouth shut.

You take this writing and go through the SOP that applies to you.
If it says, your not required to inspect or do something.
Copy and paste this to the written complaint (like I did above).

Next, you set up an appointment to go back and see what their problem is. Document everything, lots of pictures.

If anyone already repaired anything, it is no longer your concern.
If they don’t let you come back, you have no reason to respond.

Leave and tell them you will process their complaint and discuss things with your insurance provider. Everyone is still happy.

Prepare a document, addressing what I said above. This is for Insurance, Lawyer, Home Inspection Board etc.

Find out if the HI Board has a formal complaint option. They will review what the client sends in. You may be requested to provide your information. If their legal team reviews and determines it is outside the HI Standards, the client will be advised that their complaint does not fall under the HI preview. Now they need to find another path. You can advise the client of their options here and recommend they look into it. It’s free legal help for you (unless you did stupid stuff outside the SOP).

You can respond with your above documents and address what is not associated with a HI.
Or you can let your lawyer send them a letter based on your same information. You need to help out the Lawyer with the HI Rules.
The clients’ response (or lack of) will initiate the formal complaint (or not).

Discuss the complaint with the Insurance Provider to determine if you’re covered by what is in your report. They will advise.

Wait it out. It may just go away.

It sounds to me the client is just trying to make an insurance claim, not go after you.
You know you can’t just use your insurance and everything will be OK in the future?

Replacement vs. Repair to be determined.

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12

Several inspectors on here were past HVAC contractors, and $7k can often install an HVAC system not just ducts, etc. Read & REREAD David Andersons post.

CALL your E&O carrier asap AND get out there to look at & talke lots of pics CAUSE if this goes south that may be the only time they let you back in … AND like DA said, look BUT basically keep your mouth shut.

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13

Yes it is! I had a client call about a split soil pipe in his unfinished basement that I didn’t report (absolutely my fault) and he got a quote of $3500.

As we are licensed to do that sort of thing my son and I went over and with less than $100 of materials and a couple of hours labor got him taken care of.

We pointed out how badly the plumber he got the quote from was taking advantage of him.

Now he is a potential client for finishing his basement.

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14

My deductible is $5K so I’d never make a claim for $7K. Fwiw, I’m sure your client would be doing cartwheels in his driveway if you’d give him $5K (and so would his HVAC contractor). Get on site and see what’s really going on.

Rodents can really make a mess of things in a short time. Any pictures you have will help.

In the future, any sign of rodents should get a statement that there may be activity and damage in other areas than those identified and further evaluation is recommended. Small, seemingly insignificant things we write can be HUGE in instances like this.

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So it can be assumed your crawlspace inspection was limited due to these conditions. What exactly did your report say about this?

Also, I’m assuming you check all the registers/returns at the “topside” (a.k.a. habitable areas) during your heating/cooling portion of the inspection, was there anything to suggest problems or disconnected/damaged ductwork?

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Thank you everyone for your answers and advice. You were very helpful and I learned a few things for the future.

Sincerly,
Harald

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So, what happened, Harald?

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