My first potential claim...

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1

Originally Posted By: Ed Porter
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It has been awhile since I’ve posted here, but have been lurking in the shadows learning as usual.


Need some advice; In June I inspected a large home. There were several minor issues with the home.
I get a call the other night by the woman I inspected the house for. Her first question was, "You have insurance, right?" She is saying that back in September the furnace would not come on. She goes on to say that she has had two or three heating people in there to work on the furnace and wants to know who is going to pay for this work that has been done. She never once notified me until the other day.
Also, in my inspection report, I noted that the furnace unit has "vibration in the fan motor unit and should be checked and serviced by a qualified technician."
I have left voicemails to this effect, with no response. I sent a copy of the inspection contract and a copy of the inspection report section that details the furnace issue. Again, no response.
What is my next step? Is there anything more I can do to avoid any possible legal action?

--
Ed Porter
Cornerstone Home Inspection Services
Grand Haven, MI

2

Originally Posted By: Blaine Wiley
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It sounds to me like you have handled this properly so far. Fortunately, if you do your job properly, these calls are the vast minority. You can either continue to try to speak to her, or just sit back and wait for her to make the next move. Just document all phone calls and conversations.


I once had a guy call me almost two years after I inspected his home. His first words were "my heat pump just broke and you're going to buy me a new one because you didn't tell me it was going to break". After asking when the inspection was done, I pulled the report. Funny but in the report it said "The Comfortmaker brand heat pump is seventeen years old and is in poor condition. Due to the age and condition of the unit, there may be limited operational life remaining. Plan for replacement of the unit".

When I read this to him over the phone, he said "I didn't read that report". Case closed.

Good luck,

Blaine

3

Originally Posted By: jmyers
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Ed,


Instead of sending her a few pages of paperwork, you should sit down and write at least a three page letter stating your position and why you are not responsible for this issue. Of course you should include that you recommended that it be checked and certified by a professional. You should also reference the SOP's, the contract and the actual inspection report.

Don't worry about this, take a position and stand your ground.

Joe Myers

4

Originally Posted By: jpope
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Ed,


My position is this;

What will the cost of litigation be? Not only the actual court costs and attorney fees (win or lose). What will the long term costs be (especially if you lose)? Higher insurance rates. . . bad publicity. . .

How much will a new furnace cost? What kind of publicity would it bring if you bit the bullet and replaced it?

Personally, I would try to keep it out of court. I'm not saying to just lay down and take it in the a$$. Hold your position to the day before the court date and then make a settlement offer.

This may just be the "California" in me, but out here a court of law is a major defeat regardless of the outcome.

I am required by my insurance carrier to have an arbitration clause in my pre-inspection agreement. Without this clause initialed and signed, I don't perform the inspection. It's just not worth it for me.

(MHO)

--
Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738

5

Originally Posted By: arosenbaum
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Ed,


From what you have posted, like others have stated, you have handled this properly and, if she ever got a lawyer (which, in the end, she’ll be paying a few grand or more just for the lawyer), I think the judge will still rule in your favor. Like you said, you stated that it should be serviced by a certified technician, etc… Also, if she had a few heating people there (not sure if all of them were there at the same time, or what) but if the same part has broken down, the heating company should come back out for free and replace that.


When I was doing plumbing work, all the time, people would say “This plumber screwed this up, etc…” and I always though “Why don’t they call them back, and fix it for free instead of having to pay another bill”


Also, remember, that inspectors aren’t masters in every field we inspect. We have a general idea of how things work and operate. If someone was a master in plumbing, electrical, a structural engineer, etc, you wouldn’t be doing inspections…


You did everything right, and I personally wouldn’t pay for a new furnace. I would take it to court and I do believe that the client, if they lose, is liable to pay for court costs… thats in the agreement. I wouldn’t be a total a** to her, but I would try to reason with her, and if you can’t calm her down and if she is just one of those psychos that is about as cold as John Allen Mohammad, then I would play hardball.


We are all human and you have no right to take it up the a$$ or kiss a$$, if you want to do that, you can join a billion dollar company and do the a$$ kissing there and become CEO one day icon_wink.gif


Good luck ![icon_wink.gif](upload://ssT9V5t45yjlgXqiFRXL04eXtqw.gif) we are all behind you on this one

6

Originally Posted By: mrose
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it is good practice to set up a time to meet at the property to review the situation in question and find out what the client wants. This meeting is a fact finding exercise. This is an excellent time to take pictures. At this time never agree to repair, replace, pay for anything. Explain that you will evaluate the facts of and then be back in contact by letter.


In many inspection contracts it is specified that the inspector be afford the opportunity to visit the claim prior to repairs. The exception is emergency conditions such as a broken water pipe.

Immediately responding to a client's claim goes a long way in defusing the situation. If you don't answer complaint call promptly then the attorney's letter may be on its way.

You work hard for your money so don't be in a hurry to give it back.

Best regards,

--
Mike Rose
Cornerstone Home Inspection Co. LLC
Lawrenceville, GA

www.cornerstonehomeinspect.com

7

Originally Posted By: Nick Gromicko
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How much to fix?


http://www.nachi.org/dear_nachi1.htm





Nick

8

Originally Posted By: jpeck
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Ed,


A word about future wording.

"I noted that the furnace unit has "vibration in the fan motor unit and should be checked and serviced by a qualified technician." "

Would be better as:

... that the furnace unit has excessive vibration and needs to be checked and serviced by a qualified technician.

Be careful of being to specific (such as the above). What if it was the fan mounts? or the fan mount missing a mounting screw? or ... ?

Get the picture? Inspect it to see if it is "not right", report what you found "excessive vibration" (do you really know it was / is the fan motor unit? did you take the fan motor unit out and spin it to see if that was the cause of the vibration?) and then recommend that it needs to be corrected, not just the one defect you think it is, but include what it could be (anything else in this case). You could even add "excessive vibration, possibly in the fan motor unit, possibly another cause also" Now, you just included what you suspect, allowed for something you did not suspect, and included (without saying so) the and / or that it could be either or both (what you thought, what you did not think of, or both). "possibly in the fan motor unit" - what you thought, "possilby another cause" - what you did not think of, "also" - could be both.

--
Jerry Peck
South Florida

9

Originally Posted By: jhagarty
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–
Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.
10

Originally Posted By: jhagarty
This post was automatically imported from our archived forum.


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–
Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.
11

Originally Posted By: nlewis
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I would also add to Jerry’s sentence that the service shoud be completed prior to closing.


You might already have this type of statement in the disclaimer legalese, but it can’t hurt to CYA alittle more.

12

Originally Posted By: gwiggins
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I have had one similar complaint in the past. I have a hvac contractor I have sent quite a bit of business to and he was able to repair the unit for less than $200.00. I notified my client I was not responsible for the repair but would take care of it if they would sign a release. I typed up a release for the furnace and any other future claims involving the inspection. The client signed and we both went away happy.


Good luck,
Gabe Wiggins A Home Inspector, Inc.

13

Originally Posted By: Ed Porter
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As usual, great responses. Thank you.


Here’s an update:


I did send the buyers a copy of the Inspection Contract, highlighting the proper steps that should have been taken in the event of a “claim.” (None of which were followed.) And a copy of the inspection report where it said that the furnace needed to be checked… With that, I included a lengthy letter about the inspection process and phrases like, “If you’ll recall during the inspection, the furnace was vibrating significantly…”


I was polite and sympathetic to their situation. I haven’t heard anything back from them since. But, each day when I go to the mailbox, I expect to find the dreaded letter from their attorney.


Nick, they never did respond with a price amount.


Jerry, great suggestion on the proper wording.


Thanks to all.

--
Ed Porter
Cornerstone Home Inspection Services
Grand Haven, MI

14

Originally Posted By: Joseph A. Ferry
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Ed -


I wouldn't sweat the dreaded letter from the lawyer. This 'claim' is too small to interest very many lawyers. Nevertheless, you should immediately report this to your E & O carrier. See my discussion of E & O insurance elsewhere on this board.

The standard for reporting it is: would it be reasonable to expect this person to make a 'claim'. Note: the standard is NOT 'is it reasonable to believe that the claim is VALID". If you don't report it, you could find yourself in the situation of having a defensible claim but not having an insurance company obligated to defend it.

it's a real conundrum and solvable only by a massive revolt against 'claims made' policies.

Joe Ferry
NACHI General Counsel