Brand newbie here, so please be gentle. Just now setting up my business in both Texas and New Mexico. Last week New Mexico finally passed a bill (433) to formalize the licensing of home inspectors and all the duties and regulations that come with it… effective 1/1/2020. This new law is a welcomed move by the realtor assocation. The new law will require pre-inspecton agreements and E&O insurance. However, there is language in the new law regarding limitation of liability that is surprising, and I am wondering if any other states have regulations that prohibit nominal limits of liability. Here is the sentence from the pre-inspection agreement section of the new law…
“Contractual provisions that purport to waive
any duty owed pursuant to the Home Inspector Licensing Act or
accompanying rules as prescribed by the board or that limit
the liability of the home inspector to an amount less than
the professional liability insurance minimum coverage per
claim as prescribed by the board are invalid.”
The inspector board has yet to be formed and determine the minimum E&O coverage, but I assume at least $100k. If this amount becomes the limit of liability, what will the insurance insurance premiums look like? Any other states with language like this? Will upload the PDF if I can figure out the forum.
Would love some feedback. Thanks.