Inspecting High Value Homes Liability

(Kevin Hawes, CMI, CCHI) #1

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?

(Erik Schmidt) #2

If you are concerned about liability exceeding 2M, you don't need a 2M house, say an inspector fails to report a defect that ends up causing someone to be disabled and they sue. 2M could be peanuts in this situation.

(Kevin Hawes, CMI, CCHI) #3

That is a great point regarding the injury aspect as it pertains to liability.
With this topic, I am more focused on situations such as inspection on, lets say, an $8million house, and if an Inspector fails to properly report a defect for which the resulting repair to the $8million home exceeds the $2million limit. What are other Inspectors doing? Not concerned? Declining to inspect high value homes? Only doing inspections up to certain limits (less than $2million)?

(Erik Schmidt) #4

Maybe post your question in the main forum, I don't expect to ever inspect an 8 mil house, there just aren't that many in AB, you can have em all AFAIAC, I wouldn't have a clue how to inspect all that custom made high techerie , like walk in fridges, home theatres that seat 50, wine cellars, bowling alleys, swimming pools and helipads :-)

(Kevin Hawes, CMI, CCHI) #5

Thanks, I have posted on the "Canadian" Forum.