I have read multiple guarantees by inspectors. Most of them are not worth the paper they are printed on.
this type of advertising is a deceptive . It does however, sway some clients in their decision on which home inspector to hire:
conditions:
You must notify us of the defect immediately upon discovery by telephone and in writing and give us a reasonable opportunity to re-inspect the property and repair the defect. This guarantee will not cover work done by you without notice to us. What does reasonable mean? When you say without notice what does that mean. Sometimes something has to be fixed immediately to stop further damage.
Our liability to you for any defect is limited to the lesser of the actual cost to repair or ten (10) times the home inspection portion of the fee you paid. Does this mean that each item is given a cost factor in the inspection. Most inspections say they cover hundreds of items. How do you determine what a roof is worth versus a water heater?
Disagreements concerning liability under this Guarantee may only be resolved by a certified arbitrator through the American Arbitration Association. I hope all who are advertising this get it signed by their clients. At that it probably still will not hold up in court.
This Guarantee excludes liability for:
Defects resulting from failure to perform maintenance or negligent misuse. Explain that one. Do they have to get every item in the home serviced as soon as they move in. What timeline do they have to get something serviced if it was listed in the report. Lets say, for instance the air handler coils were dirty and needed to be cleaned. Three days after moving in the AC system quits. Who is responsible?
Bodily injury, property damage or other conditions resulting from the defect. Do you really think this one will hold up in court?
Failure to comply with any local, state or national code. Does this apply to the item when it was inspected. Inspectors do not report to code. How an you expect a client to know what code is>
I have seen those warranties and crap and wonder what kind of insurance policy do you have that will allow this. Might have to keep an adjuster on board just to handle claims. Spend 100.00 to make 90
The only problem that I have is competent people who do competent work would give you far more money than you would pay. You said it yourself its a numbers game. So why not take the $8 per inspection and put it away?
I gave a company here several thousand dollars and when needed had to get 25 calls and then ended up paying it myself to save face and reputation.
I understand your point Nathan and you seem to be an outstanding guy. But, I would rather deal with these people on my terms and not give them something that could later bite me in the butt as it has in the past.
For me, we do about 1100 inspections a year that is $8,800 a year and we get about $1,000 in claims a year. If you perform an inspection and document it properly, there will be no claims. It is what it is, at the time of the inspection.
If its a numbers game then what your telling me is that I would be paying for newbies to screw up? You would use my money to pay for other mistakes. I guess if your broke and suck at your job its not a bad idea…
I was mostly talking about the Florida firms that offer these. Not sure about Indiana and how you do it there. I see these guys who offer what seems to be rediculous offers and broadcast how much insurance they have. As long as it is not required I won’t open myself up anymore than I have to people looking for a payday. But hey I am still learning so I don’t know everything.
Ok, maybe I spoke out of turn. I apologize and understand a little more now. I never researched that as a promotion for me. But I get it now. I guess I was under the impression that this was a company level deal so to speak and I know there is no way I would put myself out there like that but this basically an add on insurance. right?
Confusion sets in…unless your the inspector philanthopist, you are making money on these programs. So then the facts are if the inspector just banked that money he should be able to pay for his own claims. Right?
Unless…once again…unless he sucks at his job and his PIA is a POS…
My report is my greatest protection from BS claims.
I guarentee my inspection, if we missed it, we pay for it. What is the problem there? The INSPECTION is what I am there for, not to guess at how long it will last. Trust me, if people feel that they have a problem, I am the first one they call and we work it out that way. I prefer to talk with my clients, work with my clients, hell most of the stuff that was a “problem” was just a tradesman trying to rip them off, or they didn’t know how to properly work it or it was in the report.
Many of these “complaints” end up being people who market for me and refer me out to their friends.
Once again, its a numbers game. Its like ghetto insurance for the inept. Sorry, but that is what it seems to me.
The warranty Sounds like a lucrative way to market to specific buyers. I believe it depends on your niche. Especially, first time buyers that may desire a some short term protection during the first 90 days.
