Non-member question about E&O insurance

Local Inspection Issues Texas/TPREIA Home Inspectors
#1

Greetings all. My name is Doug. I am not yet a licensed inspector in Texas. I have completed all of the course work necessary but as you know, before I can apply to take the TREC exams, I must have Errors and Omissions insurance in place.

I am having a devil of a time finding an affordable company to write a policy on a brand new licensee. I was hoping that there might be someone out there that could offer some suggestions.

I thank you in advance for taking the time to read my post and again for any replies that I may get.

#2

Unless the rules have changed again recently, I believe that you do not need the insurance until you apply for your license not before the test. I got my policy between getting the passing grade and the issuance of the actual license. I could be wrong on though. There are always small changes to the rule that are hard to keep up with.

I would highly recommend Don Nixon with Southern Preferred. He is the carrier for at least 25% of the inspectors in the state and has the policy for our local TPREIA/InterNACHI chapter.

#3

Here’s who I use:
The InspectorPRO Team
Citadel Insurance Services, LC
826 East State Rd, Suite 100 America Fork, UT 84003
(801) 610-2713 | (801) 610-2701 (Fax)
This division specializes in insuring home inspectors. It’s about $1880 per year for both Liability and E&O insurance.

#4

Are there any agents that charge per Inspection for first year?

#5

Yes. I don’t remember who but the “SEARCH” function above can help.

Remember to have verified , in writing, what you are getting and if the per inspection E&O will be part of a continual “Claims Made” policy, if that is what you choose.

More info here:

http://www.techinsurance.com/blog/general-insurance/avoiding-lapses-in-eo-insurance-coverage/

#6

I am satisfied with Don Nixon in Garland.

#7

Thank you for your replies. I will contact TREC directly about the insurance requirement. I was lead to believe it was required pre-test.

I’m assuming that the per inspection option would be a cost savings as one built their business rather than paying a full policy year when you may not have inspections for weeks at a time?

I will check the other two companies suggested.

Cheers, Doug

#8

Doug, give me a call and I can advise you on rates and coverage’s right over the phone to see what will work best for you.

Talk soon
Dave