This is a good argument against inspectors handing out these so called “warranties”. All of them are worthless pieces of paper with short-term limited coverage of practically nothing. They build up (as they obviously did in this case) the client’s belief that some kind of warranty exists when it does not.
A home inspection is nothing more than a description of the home’s systems on the day of the inspection. Period. Nothing more…nothing less.
Warranties imply “more”…especially that lunacy being pushed out of Colorado where they suggest you trick your client into freeing you from any liability should the client accept payment on a claim.
Home inspections are not warranties and these things are starting to make the line look a bit blurry between what we do and what they offer.
I stopped using American Home Warranty several months ago when a client asked me if I would back up something that the warranty company did not pay for.
Ive never understood the rationale in giving away a warranty with a home inspection, when most if not all Inspection Contracts that I have ever read (and I have read many) always states something to the effect “a home inspection is not a warranty, nor is one implied” somewhere in the body of the contract. To then turn around and offer a warranty sends a very confusing if not contradictory message. Well, which is it?..would be my first question. Further, I did not install anything or fix anything so why would I then turn around and “guarantee” something for 10 minutes let along 60, 90 or 120 days? I simply operated it using normal operating controls. I know many give them away and it is a business decision on their part but just thinking about putting myself in that position gives my butt the willies.
On the contrary, the mere fact that the home inspection is, indeed, not a warranty, nor is one implied, is why many home inspectors offer warranties after the fact. They complement each other.
Makes perfect sense to me, but I only offer them with my PREMIUM and TECH inspections, where the inspection itself is much more technically exhaustive than anyone’s SOP inspection. I do not offer them with my BASIC or STANDARD inspection.
The fact that the inspector offered a warranty just might be exactly what did endear the inspector to this specific Client. I think the lack of follow-up by the inspector, and the lack of even a willingness to return the Clients’ emails and phone calls, is what is truly at issue here. Debbie had certain expectations which the home inspector failed to manage.
When one has up to 5½ years of liability, and when most problems can be detected in the first few months, even weeks, after close of escrow, a warranty can come in very handy if one realizes that it is, indeed, insurance, that insurance has exclusions and limitations, not to mention very fine print, and works within those exclusions and limitations. The first limitation, of course, is time, as it relates to the length of the warranty period and as it relates to the age of items which the warranty would otherwise cover. The second limitation is cost to repair since there are usually deductibles and maximum payouts.
It is not after the fact though. It is being used as an inducement to use that Inspector. If one is going offer warranties (personally, I don’t give a flip if they do) than they should omit that verbage from their contract pages. The warranty in that case is being offered as “part” of the inspection and based on information gleened during the inspection.
Not true. It is, indeed, offered after the fact because it does not go into effect until after the home inspection. If it were being offered as part of the inspection, then it would have the home inspector’s name on it rather than the insurance company’s name. And if the home inspector’s name is on the policy, then he would be practicing in the insurance industry without a license. All 50 states require insurance companies to be licensed and/or registered with their states.
Home warranties are offered by sellers as “inducements” for buyers to buy their homes. In no way does that mean that the seller is providing the insurance; they are not. Insurance companies provide insurance. Some do a good job, some do a poor job. Some do a good job until a natural disaster happens, and then they do a poor job. All have exclusions and limitations. Doesn’t matter what kind of insurance it is—home, life, AD&D, key man, auto, dental, vision, etc., etc., etc., ad nauseum ad infinitum—all have exclusions and limitations.
The home inspector here failed to manage the expectations of his Client, and then he failed again in addressing the expectations that his Client did have, regardless of from where those expectations came.
I have helped many people here who originally used one home inspector but then when they had issues they could not reach him so they saw that I was available 24/7 and they called me. Consequently, I have helped many of my competition manage their Clients’ expectations after the fact. I was hoping that if Debbie posted here, the home inspector might call her and help her address her concerns. He apparently at least did call her, but, again, I don’t want my name associated negatively with anyone other than Heaven’s Eleven, so I would have done everythng legally and ethically possible to help her if she were my Client.
Still does not answer the question about saying two diametrically opposing things. “We don’t offer any kind of warranty by performing this inspection, but we do have this worthless piece of **** warranty we will give you if you use us to do your inspection.”
Sure it does. They are not overlapping. The warranty starts after the inspection is finished and goes for 90 or 120 days. That seems very simple for me to understand.
One is a home inspection, with a specific purpose, and the other is insurance, with a specific purpose. That also seems simple for me to understand. They complement each other. How well they complement each other is open to debate, which is why I only offer them with my technically exhaustive PREMIUM and TECH inspections. That’s where I believe the companies that offer this type of insurance, and the home inspectors who go along with it, fail, and that failure is part and parcel of failing to manage the expectations of one’s Clients.
Nope. It’s only good if one understands how to market it effectively. Unfortunately, many don’t, and as much as I try to help people with marketing, the negativity of the Heaven’s Eleven often gets in the way.
I could also simply rewrite that: “Jim … Save us the yap. You don’t do it, don’t like it, don’t like people who do it, so it is bad.” As my wise old grandmother said, “See how that works?”
Perhaps, “You can go your own way, go your own way.” :mrgreen:
Not so clear and simple, as many home inspectors can attest, which is why the programs continue to exist.
As with anything in life, problems sometimes do arise. It’s the conscientious person who is willing to help address those problems who typically wins.
That’s the key, it would appear that the insurance, (warranty) company is relying on your report. A good lawyer would have a field day in court. Since every warranty I’ve read, in regards to home warranties, cover almost nothing, they’re basically worthless. Like a 7 yr. warranty on a car battery. After depreciation you may get $5.00 if you’re lucky.
Well, hell, using that logic, then you really don’t even need to do the inspection at all if the warranty is not germain to the inspection. Just pick up your fee for the inspection, give them the worthless warranty. You’re covered!!! Why not hand them out for ALL your inspections, why only the top ends inspections. There must be a reason not to. Could it be because the lower tier inspections leave too much exposure to having it come back on you? That is certainly my impression.
Actually, I don’t see anything that says a home inspection must be conducted. On the ones that I provide with my “top ends inspections” through American Home Warranty, all I have to do is put in the date that I handed the policy to the Client. That’s the date that coverage begins.
Now ya gots me ta thinkin’. Hmmmmm… :mrgreen: If I wanted to, I could provide policies in perpetuity without ever doing an inspection. Every 90 days just provide another policy. Hmmmmm. :mrgreen:
I’ve been reading through my agreement with AHW, and there isn’t anything that says a home inspection must be conducted, so there are also no standards per sé. I’m going to explore whether I can provide this warranty with, say, my MAINTENANCE and SPOT inspections, which are not “home inspections” as you might define them. I suspect the answer is yes.
There’s several things I’m curious about before throwing out advice. Your post starts out by saying that you had an inspection on May 21st, then goes on to say there was nobody living there between November and May to mess with the unit. Was the property being shown to others during this time? If so others were there and could play with the units.
Was the inspection actually on 5/21/08? If so were you there? If you were there are you saying you didn’t see the inspector check these items? What were the A/C unit and dishwasher doing when you did your “pre-closing walk-through” a few days before closing to make sure everything still came on?
You indicated you read his warranty. I use one too and it clearly states that ANY appliance, furnace, A/C unit over 11 years old is not covered. If you read it why didn’t you question him about that? If I understand you correctly, his web site talks about repairing DEFECTS that were clearly visible on the day of the inspection …
Two months ago I did an inspection. The people closed in 8 days. Four days after they moved in, the sewer backed up. I’m sorry for them, but I’m not in the fortune telling business and it was draining fine when I was there 12 days before that. Many things work right up until they quit with no advance notice.
According to your post - the A/C won’t work and is too old to fix (how do you know that), the dishwasher doesn’t work, and the furnace might not work this fall - but you won’t know until its too late. Thats a lot of things going wrong right off the batt. In my area, I could get many service guys to come out for under $100 to check these. Whats wrong with them?
If you’re worried about the furnace check it now.
His warranty was FREE, and at best it was only good for 90 days. If you’re that pressed for $$$ I’m amazed you didn’t ask the seller for a 1 year long warranty OR buy one yourself. What were you gonna do if 2 or 3 things went bad after 93 days??
There’s several things I’m curious about before throwing out advice. Your post starts out by saying that you had an inspection on May 21st, then goes on to say there was nobody living there between November and May to mess with the unit. Was the property being shown to others during this time? If so others were there and could play with the units.
Was the inspection actually on 5/21/08? If so were you there? If you were there are you saying you didn’t see the inspector check these items? What were the A/C unit and dishwasher doing when you did your “pre-closing walk-through” a few days before closing to make sure everything still came on?
You indicated you read his warranty. I use one too and it clearly states that ANY appliance, furnace, A/C unit over 11 years old is not covered. If you read it why didn’t you question him about that? If I understand you correctly, his web site talks about repairing DEFECTS that were clearly visible on the day of the inspection …
Two months ago I did an inspection. The people closed in 8 days. Four days after they moved in, the sewer backed up. I’m sorry for them, but I’m not in the fortune telling business and it was draining fine when I was there 12 days before that. Many things work right up until they quit with no advance notice.
According to your post - the A/C won’t work and is too old to fix (how do you know that), the dishwasher doesn’t work, and the furnace might not work this fall - but you won’t know until its too late. Thats a lot of things going wrong right off the batt. In my area, I could get many service guys to come out for under $100 to check these. Whats wrong with them?
If you’re worried about the furnace check it now.
His warranty was FREE, and at best it was only good for 90 days. If you’re that pressed for $$$ I’m amazed you didn’t ask the seller for a 1 year long warranty OR buy one yourself. What were you gonna do if 2 or 3 things went bad after 93 days??
Help us understand this transaction.
PS - Speaking about the seller, what about him? If things worked at the inspection and did not work at your pre-closing walk-through its still the sellers house. Did you turn anything on??
