Discounted E&O from FREA

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41

Originally Posted By: jbehling
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Just be glad you don’t live north of the border icon_lol.gif We need to beg, borrow, and steal (and sell maple syrup to American tourists ) just to cover the deductible

42

Originally Posted By: Nick Gromicko
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Jason:


I spoke with Joe Ferry this morning and I'm meeting with him Wednesday. Hang in there. We have help coming to Canada.

Nick

43

Originally Posted By: Blaine Wiley
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Scott,


I think you would be shocked at how many first year inspectors have claims, versus veterans. Thus the higher payments. And we all pay the $350 if we aren't paying up front.

44

Originally Posted By: chorne
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I have carried E&O for 3 years,never had a claim, and my renewal


went up $1000 for this year.


They are telling me that because it is such a risky business the


Ins. Co. don’t even want to carry these types of policies.


I hope that we can get some kind of group thing whether its FREA
or something else.

Carla

45

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.


Carla:


NACHI members already enjoy 10% off from FREA. What insurance company are you with?

Nick

46

Originally Posted By: ssmith3
This post was automatically imported from our archived forum.

Nick, What members enjoy that?

–
Scott Smith


Marinspection


Vice President NorCal NACHI Chapter


I graduated from collage. Now my life is all mixed up.
47

Originally Posted By: dbowers
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Guys -


It appears that many people seem to think its gotta be cheap to be a good deal …


I sold insurance and mutual funds 35 years ago while in grad school. I worked for John Hancock. If I was going toe to toe with any of the other big dogs bidding on a business account somewhere - almost all of my competitors were in the same overall ballpark - price wise.

I was on ASHI's National Insurance Committee for 3 years, and E&O is only offered nationwide by a handful of carriers. They have different deductibles and different plans but most of them are in the same range.

When you get one that is so DRASTICALLY out of whack with the others, anybody should get real suspicious real quick.

Since 1984, I've only not carried E&O and general liability in 2 different years. I've never had a claim of any kind. I've had my insurance with at least 6 different carriers that I remember. I've switched for price, for features, for a lower deductible, for better financing, etc.

For the past several years my carrier has been Marion Allen Insurance out of Ft. Valley, Georgia. They had the 2nd highest premium but it finally occurred to me they have been the most consistent over the years with about every option you can want. In short they're always there. Their HI Rep (Bob Pearson) has been there for at least 6-8 years I know of.

Most every other one of the insurance companies - you can call them this time next year and it will be a whole new group.

Bottom line - E&O Insurance is a pay now, or pay later industry. When you buy the cheapest, you often get exactly what you paid for. Buy because of service, longevity, etc not because someone is CHEAP.

Dan Bowers (Kansas City)

48

Originally Posted By: Chris Butler
This post was automatically imported from our archived forum.


Scott,


we are unable to offer the discount on the Candidate level to any group. Up until three years ago, our carrier wouldn’t even insure a Home Inspector that was “new” to the industry - so we feel that they have come a long way. I am sorry that does not meet your expectations or needs.


Sincerely,

–
Chris Butler


(former) Director of Membership @ FREA

49

Originally Posted By: ssmith3
This post was automatically imported from our archived forum.


Quote:
New Home Inspectors to FREA (insured elsewhere or not at all... yet) and HI's that are currently with FREA will receive this discount.


I have not been insured elsewhere AND I am new to FREA. That sounds like I qualify, Right?


Quote:
FREA is willing to offer some form of discounted E&O for ALL NACHI members, due to the professionalism of you the members and the standards by which you practice.


I think I fit into the "ALL" category.


Quote:
ALL NACHI members that are current, have had completed 150 inspections or more (to bypass the candidate level) will receive a 10% discount on the listed E&O rates. Candidate level coverage will remain at the listed price of $3,500.00.


So the way I read this one is, no discount?

May-b the wording should be something like this.

ALL NACHI members that are current, AND have had completed 150 inspections or more (to bypass the candidate level) will receive a 10% discount on the listed E&O rates. ALL NEW INSPECTORS ENTER AT THE CANDIDATE LEVEL AND THE Candidate level coverage will remain at the listed price of $3,500.00.


I also think you should be up front about the "enrollment fee". $350.00 for the privilege of paying over 8 months. If I was to set up an auto payment with my credit card or bank you would not be out any money. I just don't want $3500 hanging on my credit card gathering interest at 4.9%. I don't get enough business in the first month to cover that amount.

May-b Chris you can cut the discount for the new guys in the enrollment fee IF, they set up a direct payment??



To everyone that is reading this I am not trying to make FREA look bad or, bad mouthing Chris. I will be sending in my application package to you Chris.

As we used to say back home "it's as clear as mud to me!"



Scott Smith

–
Scott Smith


Marinspection


Vice President NorCal NACHI Chapter


I graduated from collage. Now my life is all mixed up.
50

Originally Posted By: Chris Butler
This post was automatically imported from our archived forum.


Scott,


thanks for your help in the clarification. As that was to be done soon in a follow-up post by myself. Also, we are up-front about the enrollment fee in the application and it is explained in detail when you call and ask for a quote. There is only so much info that you can cover within an e-mail or on a website. There is no discount available in the enrollment fee regardless of how it is set-up. I will be sure to get with Nick and Chris from NACHI and edit the original post that has some wording issues and make the necessary changes so it is clear as day, not mud.


And Scott, no offense taken by myself on this - I really do appreciate your help in clarifying this.


Sincerely,

–
Chris Butler


(former) Director of Membership @ FREA

51

Originally Posted By: rbracklow
This post was automatically imported from our archived forum.


And the Beat Goes On!!


The Insurance Companies win again!!! ![icon_evil.gif](upload://1gvq2wV2azLs27xp71nuhZOKiSI.gif)

Ron.

52

Originally Posted By: Chris Butler
This post was automatically imported from our archived forum.


It’s a good thing we are not an insurance carrier here at FREA. I would be roasted on a spit by the masses just because I worked for a carrier. But the flip side is they (carrier) would never reply or acknowledge any post to them.


Sincerely,

–
Chris Butler


(former) Director of Membership @ FREA

53

Originally Posted By: gbeaumont
This post was automatically imported from our archived forum.


icon_lol.gif icon_lol.gif icon_lol.gif

–
Gerry Beaumont


NACHI Education Committee


e-mail : education@nachi.org


NACHI phone 484-429-5466


Inspection Depot Education
gbeaumont@inspectiondepot.com

"Education is a journey, not a destination"
54

Originally Posted By: ssmith3
This post was automatically imported from our archived forum.

I just felt that with this being in the public forum that the wording should be correct. Don’t want the new guys running out and buying all new tools thinking they are going to get some GREAT discount on the insurance. I also know that lawyers love words and are great at using your own words against you. THAT’S what I didn’t want to see.

–
Scott Smith


Marinspection


Vice President NorCal NACHI Chapter


I graduated from collage. Now my life is all mixed up.
55

Originally Posted By: rbracklow
This post was automatically imported from our archived forum.


Hey Scott,


Don't forget the Insurance Companies do the same thing - ever read their fine print?? I just reviewed my E&O policy and there is more BS written there that it literally takes a Law Firm to deceifer, and of course more disclaimers than Carter has peanuts!!

Our PE Association has been fighting these policies and charges for years. Some with good results others not so. Never the less, the Insurance Companies have the clout, Lobbyists, can afford pay-offs, etc. to insure their own and inflated funding. Of course it would never happen, but wouldn't it be nice if they were legislated as a "Non-Profit Industry"!! ![icon_mad.gif](upload://j9pysYkUDeHxjgaVCpqL5B8x4z3.gif) ![icon_mad.gif](upload://j9pysYkUDeHxjgaVCpqL5B8x4z3.gif)

WE, are at their mercy literally!! All we can do, is keep up the good works that has been started, and perhaps some day they will get the message.

As I stated in an earlier post, where are the results of negligent action and resultant law suits, with so called exorbitant fees having to be paid out by the Insurance Carriers. I have yet to see ANY documentation on these - I wonder why??

I love a good fight!!

Ron.

56

Originally Posted By: rbracklow
This post was automatically imported from our archived forum.


All,


Here is an interesting URL put out by C.A.R. (Calif. Assoc. of Realtors) on E&O insurance.

http://www.car.org/index.php?id=MzMwNTQ=

Just for all of your info.

Thanks for reading this.

Ron.

57

Originally Posted By: ekartal
This post was automatically imported from our archived forum.


Interesting post about E&O coverage over at inspection news. Chris Butler explains the details of claims made coverage vs. occurrence coverage. There’s a big difference if you’re not already aware. So is the cost.


Erol Kartal
ProInspect

58

Originally Posted By: Chris Butler
This post was automatically imported from our archived forum.


FYI


here was the question “Tell us about tail coverage for E & O for FREA.


Is it included in your coverage? If not, Why Not?”


Here was my reply:
unfortunately with this particular subject there is no short answer as I noted.
"it is not.
Why?
(I wish I had a cliff notes version of this explanation).
Ok here we go.
Because claims made policies do not have tail coverage "built-in" to the annual premium rate like an Occurrence policy does.
Thus saving the HI thousands of dollars over the course of his or her career in the HI industry. Tail coverage with FREA costs 75% of the last year's premium. Why pay for years of "built-in" tail coverage that you never use because you are renewing annually (and doubling your costs and coverage for insurance) when you can pay just one time for another year's worth of coverage to potentially cover an inspection in that last year before you retire and are worried about one of those inspections in your last year?
Example:
Occurrence Policy -
1st year January 1 2004-2005
1st year tail built-in 2005-2006
2nd year tail built-in 2006-2007
3rd year tail built-in 2007-January 1,2008
The three years of "tail" noted above are not "free" they are paid in the 1st year of the policy and every year after that when you renew.
So if a claim comes in under an occurrence policy under the above scenario from an inspection done within Jan. 1st, 2004 - Jan. 1st, 2005 and the claim is filed before Jan. 1st, 2008 - great it worked out for you. But when January 2nd, 2008 hits - the 2004-2005 calendar year disappears from the homes you inspected. Not so good if you are going to being doing this for 10-15 years. In theory you only have coverage for a revolving 4 years. Now for some that works because of your individual state statue of limitations. For others though this does not work at all.
Back to the example dates above:
Jan. 1, 2004-2005 premium paid and built-in tail also for next three years.
Jan. 1, 2005-2006 premium paid again and three years of tail. Well wait a minute, you already paid for 2006-2007 and 2007-2008 back in 2004 and are paying again in 2005-2006. And when you renew you annual premium in 2006-2007 you pay for tail coverage a third time for 2007-2008. Pretty good profitability for the carrier don't you think.
As long as you keep your policy current and in place with no breaks in coverage. A claims made policy can go back to the first date you started the policy. That could be 15 years... there is no time limit like Occurrence policies. Now if you stop your policy for whatever reason, it is just like car or health coverage. Once the policy stops so does the coverage. And there is no way to go back and turn in a claim from an inspection that took place while you were insured after this has happened.
So they are pluses and minus's to both, the difference though is a $10-15K savings over a 8-10 year period - having a claims made vs. an occurrence policy."
Hope this helps anyone who was wondering about the costs differences.
Sincerely,

--
Chris Butler
(former) Director of Membership @ FREA

59

Originally Posted By: jremas
This post was automatically imported from our archived forum.


I am just happy that we get a discount and I am looking forward to my discount when my FREA insurance is due this year. I moved my insurance from another carrier that was less expensive but in my opinion, I want to know what I am covered for. The septic rider with FREA along with some other perks sold me. If they ever get rid of the new septic rider then I am gone too. Thanks for the discount in advance.

–



Jeff Remas
REMAS Inspections, Inc.
Northeastern PA & the Poconos
www.NEPAinspector.com

570-362-1598
60

Originally Posted By: tschwalbe
This post was automatically imported from our archived forum.


Chris whats up? When I called you today to purchase insurance you laughed at me telling me that the nachi entrance requirements were a joke and if i wanted insurance through frea i was going to have to go to home inspector school. This coverage was suppose to be for all nachi members. I have been in construction for 20years and doing inspections on the side. Now I decied to go legit form a new corperation buy added tools and now you want me to go back to school. ? icon_evil.gif