OREP seeking to write E&O insurance for NACHI members.

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1

Originally Posted By: gromicko
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http://www.nachi.org/orep.htm


Nick

2

Originally Posted By: jfarsetta
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At around $2000 for $100,000 in coverage… it seems like a lot of $$$.

–
Joe Farsetta


Illigitimi Non Carborundum
"Dont let the bastards grind you down..."
3

Originally Posted By: rbracklow
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Question,


OREP mad a statement that The Hartford will give a group rate of two or inspectors. Is it not possible that we (NACHI) as a collective Group could receive a group rate through an Insurance Company such as The Hartford??

Nick, what's your opinion on this??

Thanks,

Ron.

4

Originally Posted By: Nick Gromicko
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The source problem in the US is risk. I don’t want to become an insurance agency. Let FREA and OREP do what they do best. I just want to reduce the number of claims, the number of judgements, and the size of awards. We do that, everything else will fall into place.


Canada is different. The home inspection idustry was being used. The insurance companies weren't even interested in the profits from our little industry. They had bigger fish to fry. Everytime a claim was filed (no matter how small), the insurance companies wildly predicted it would cost $200,000.000 to defend. This way they could set aside $200,000.00 in a separate account which was tax free. Basically they used our home inspection industry to avoid paying taxes.

There is no money in cutting out or beating up the middle men (FREA, OREP, etc.) We have to repair the source problems.

Nick

5

Originally Posted By: mpfeffer
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Joe, you wrote that 2k seemed like alot for insurance for $100,000. I was just about to fill out an app from them. This was the cheapest i’ve seen. Most were around 2,600 or 3,000. Do you know of a better deal? That would be great! I have many years in construction, but new to the HI bus, and it seems I am being overlooked. I don’t want to start doing them without Ins. out of fear of lawsuit happy ignorant people who think we should see a pipie in the wall that bursts 3 months after an inspection. Thanks

6

Originally Posted By: Blaine Wiley
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Matt,


I looked at OREP and thought their price was high. 100K coverage is not much coverage unless your average home price is 50K. FREA has about the best coverage with a low deductible. At $2495 for 300K you are only paying an additional $495 for 200K more insurance. Since the average price of a home is going up, and so is the average lawsuit settlement, it just makes sense to protect ones backside just in case.

We also get some kind of NACHI discount at FREA which will bring the premium down even more.

7

Originally Posted By: sspradling
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I know FREA has helped HI’s out with E&O, I used to pay them for it. But if another carrier offers E&O, plus General Liability for hundreds less per year, wouldn’t that be better for everyone? I don’t get any kickback, referral fee, or steak dinners for sharing this info. Check with a local State Farm Agent to see if these products are available to you in your area. In my area, Errors and Omissions Liability Insurance Policy, plus a Special Form 3 Business Policy for General Liability is $1860/ year. 500k coverage. 2500 deductible on e&0, 500 deductible on gen. liab. I hope this is timely and helpful info.


Stu.