E&O Protection For Inspection of High Value Properties

Just wondering what other Inspectors are doing when asked to inspect high value homes ($2million +). Our E&O liability insurance is only $2million with a $3million aggregate. We cannot buy higher limits (according to Kim Smith at HUB). Are other Inspectors not concerned? Declining to inspect high value homes? Inspecting homes up to certain value limits (less than $2 Million)? Your thoughts?

The limit of the insurance is to cover you for negligent mistakes. It doesn’t matter if you are performing inspections on a house of $200,000 or $4,000,000, the insurance isn’t to cover the cost of the property, it’s to cover the cost of any negligence.

If you inspect a deck on a property worth $100,000 you say it’s OK, and the deck subsequently collapses, killing someone, the lawsuit could run into millions.

The secret is to buy the level of insurance that you feel is commensurate with your own risk. If you are a thorough Inspector, well trained, with a good inspection education, are diligent, identify everything possible and report is correctly then your risk is as low as you can make it.

If you fly round a property, use a tick-box inspection report, are slap dash with your reporting and haven’t prepared yourself with good, quality training, then your risk level is high.

This is why companies like Hub respect those inspectors who take training, and respect even more those who can prove it. This is why joining InterNACHI, taking the training, and then entering the CCHI program in OntarioACHI which leverages the InterNACHI training and proves it with proctored examinations gain you a 12% discount on your insurance. Hub has recognised that the combination of the excellent training of InterNACHI and the audit process of proctored examinations and peer reviews at OntarioACHI identify an inspector who understands the risks and can work to mitigate them.