I’m curious as to what extent home inspectors (Utah for me) can be exempt from any and all liability in regards to omissions (outside of the SOP). I’m not talking about if we damage a property, only missing defects. It seems to me that we could put a term in the pre-inspection agreement that exempts us from pretty much anything above the SOP, and even then, common sense tells me that even inspectors aren’t perfect, and the inspection is just one more tool/aide in the buying decision process.
I bought two homes long before I knew anything about how home inspectors work, and it never once occurred to me to blame a home inspector for any defects they didn’t find. I just assumed a house will have things I need to repair.
Any thoughts?
When a customer hires me they sign an inspection agreement in which they agree to the standard in which the home is to be inspected. This agreed upon standard does not exclude the rest of the universe (other than some specifics) but rather defines what you will do.
That is the agreement. I do not see the need to state what is not being done.
For example, If I hire a contractor to paint my house, replacing the driveway is excluded because it is not in our agreement. I don’t need to mention the rest of the universe.
That is very good advice!
So, as long as the SOP is clearly agreed upon, then everything else is gravy?
Regarding the standards, for example, if I do all that I’m required to do, and a client gets mad later on that the toilet is backing up, I’m not liable for anything? Just tell them that I checked everything according to the agreed upon standards of practice and nothing showed up in relation to the toilet backing up?
Regarding the agreement, I think I need help finding the most updated pre-inspection residential agreement on InterNACHI… the one I see is Feb 2019, I believe
Keep in mind that anyone can claim just about anything and then you have to defend yourself! That is really what E&O insurance is for, your defence. What you should be more concerned with is what is called the Standard of Care. This trumps the SOP when it comes to litigation. The Standard of Care is what others in your profession are doing on a normal day. A good example would be using a moisture meter. No SOP requires you to use a moisture meter but you better have one and use it as needed! It is pretty much the standard of care when it comes to checking for moisture seepage in a home.
You got it. If a customer calls with a complaint, I am sympathetic, I offer solutions and if needed I will direct them back to the SoP. Some inspectors narrate some SoP verbiage into their reports.
Such as:
“The inspector flushed all the toilets. There were no toilets that had visible damage, had loose connections to the floor, visible leaking, or had tank components that did not operate.”
Or
“I operated the air conditioner using normal operating controls. The supply vent in the guest bedroom did not produce conditioned air”.
I do not do this because my SoP has already defined my course of action and I have preemptively managed expectations.
No, you are on your own. This where building relationships with experenced inspectors in your area should be on the top of your agenda. Experence in our profession is what it is all about!
I do. And I hope they attend if possible. One way to open the conversation is to ask if they have any concerns. It almost always leads to a conversation about expectations and the SoP.
For example, I had a customer ask about energy efficiency and energy bills in an old home, which allowed me to discuss the nature of a visual inspection, IR limitations, etc.
You bet. You try to set the expectations with your client before the inspection. Two ways, 1) The inspection agreement that almost no one reads, 2) Verbally.
Nothing fancy. Over the phone if my clients will not attend the inspection or at the inspection, I say…
“Let me give you my little speech. I’m doing a visual inspection, looking at anything I can reasonably get at. I’m starting on the outside. Roof, structure, plumbing, electrical. I come inside and continue to check the structure, plumbing, electrical and anything I can get at. I run the appliances, the furnace, water heater, and all that good stuff. I don’t move furniture or knock holes in walls. More eyes looking, the better. Anything you see or have a question about, definitely point it out. We’re trying to get a snapshot view of what’s going on in the house today. We’re trying to tell if anything is wrong or looks like it is going to break. But trying to tell how things are working in the relatively short time I’m here, is the best I can do.”
Another thing. The SoP is a minimum inspection. We all inspect beyond the SoP, but never below the SoP. Always do the same inspection for every client, in effect, creating your own personal SoP.
You mentioned liability insurance, liability does not covere missed items. That is E&O that covers this. Check with your state on what you need. In this business E&O is way more important than liability, but having both is best.
Robert - This is #1 with misunderstandings by your client.
You can have a 20-page inspection agreement that no one will read. So listing everything not covered is worthless. What you do do, is a shorter list, and it was already written by your State.
At the end of inspection, ask if they have anything specific you have not covered. Call them if they didn’t attend.
As for trying to eliminate all liability on your part, that is not possible.
I had this discussion with my lawyer when I first started HI. His reply was that the Judge in a case (in my state) will just throw it out, regardless of it being in a contract. He told me to leave what I had in my Inspection Agreement if I wanted, as it may deter a minor complaint. But don’t expect to be exempt from any liability.
Look at your State Home Inspection Commission. Does it take complaints? They will review the complaint and if it is not in the SOP the client will be notified of such. Does not mean they will quit trying, but now you have a witness in your favor who is a Lawyer for the Commission.
Quit trying to get away with something. No Judge or Jury will take your side over a legitimate client complaint. Do a good job. Have a plan on how to handle a complaint (this has been addressed here a hundred times). If you made a mistake, pay up. Consider it an educational expense and move on.
Liability insurance is a REQUIREMENT in MD (§16-4A-04) and other licensed states!
The pertinent part of MD law for limits to liability is in the Business and Occupations section of the law (§16-4A-01). Many courses only refer to the state SOP (§09-36-07) and miss the protections afforded in the business section by omitting the required disclosure (§16-4A-01) or the required record retention (§16-4A-05).
ndegaris
(Neil DeGaris, CMI KY License # 102167)
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