Special deal on E&O insurance for InterNACHI members.

I’ve been wondering the same thing. The more your income the more expensive the premiums, or the less income the more expensive the premiums?
Then, what happens if one goes over his/her estimated revenue/inspections? (which I wish for everybody)

I would love to have this discussion with you gentlemen and answer/explain any questions you may have.

Bob-I believe that some of your views on home inspection insurance definitely have merit. Insurance carriers have mistreated claims and overcharged home inspectors for years. This is part of the reason we built a specific program with a carrier that will properly handle claims. I believe that this accompanied by proper risk management practices by inspectors will bring premiums down. i can get you an entry level E&O/GL policy for close to the $1000 you mention. Listing a price for insurance without taking in to account specific underwriting factors would be poor management by an insurance carrier and would actually cause premiums to be higher and not give credit to inspectors who are claim free. It would also make it difficult for pricing decreases to happen.

As far as revenue estimates. This is the easiest way for an insurance carrier to truly define their exposure. Normally, the revenue is a direct correlation to the number of inspections you do or the exposure they have on an inspection. It is also the only factor a carrier can truly verify and audit to determine their actual exposure. Most Inspection insurance carriers have a threshold before they start to surcharge according to your premium. with my carrier, if you are under $150K your rate is the same and then there is a very small surcharge per thousand as your estimate goes up from there.

It is not my intent to enter a debate. Having or not having insurance is a choice much like the choice to have or not have a home inspection. Insurance carriers are in a profit oriented business, but it is not a “make as much as we can” world. I believe they treat it much like you treat your business. You charge per inspection based on competition, time, profitability, costs, etc. A good insurance carrier approaches their offering in a like manner. Your goal is to provide a service/product that provides a living for you and your family. Insurance carriers have the same goal.

Will

Chinese drywall is not covered in our EIFS endorsement (because it doesnt have anything to do with EIFS). We do not exclude coverage for claims pertaining to Chinese Drywall. We have not built a specific endorsement at this time, because determining origin of drywall based on a visual inspection is virtually impossible. A home inspector cannot be held liable based on their standards of practice. Your insurance carrier has a duty to defend per your policy. In short, if a claim arises based on Chinese Drywall, it would be very easy to throw that law suit out of court.

I heard people talk about Sarah at GREIA, I contacted them, and I received this - “We are pleased to inform you that GREIA has merged with Citadel! We can now offer you greater savings on your insurance through the InspectorPro insurance program”. So Will, is this all the same?

Marty

Yes. Citadel purchased GREIA. The GREIA book of business will be written through InspectorPro as their current client renewals happen. Any new contacts to the GREIA office will actually forwarded to Citadel, so yes one and the same. Have you been satisfied with your service so far with Andrea?

She has been very good, professional, friendly and helpful, that is all I can ask of anyone.
I told her I was waiting on a quote from another company, but I didn’t tell her which
one, (GREIA) :slight_smile:

What amounts of coverage do most Home Inspectors carry? 500,000 - 1,000,000
input from other members please

NAPLIA is also Inspector Pro

EIFS or EAVES as Aaron wrote back? Do they mean the same thing in your endorsement plan names?
Either way, you said, you do not exclude coverage of Chinese Drywall, but my point is you do not include it either.
So, I am skeptical about

quote as InspectorPro could just as easily says, Chinese drywall is not included in the policy, therefore you are on your own…
This is why I specifically asked Aaron to show me where in the policy it was written that Chinese drywall was included (not Chinese drywall is not excluded)

What amounts of coverage do most Home Inspectors carry? 500,000 - 1,000,000
input from other members please

It will depend on your area, what your state imposes, if your state doesn’t impose then do you “believe in” E&O or not, if you want to go the Joe Ferry route, if you are single inspector or multi-inspector company etc…
My State requires HIs to have a minimum of $100K. Personally, I carry $300K because the average house selling price in my neck of the woods is $250K.
It is one thing to see what others do or have, but you have to sit down and do your research for you market area, how much coverage you want and what you want covered. For example, lead, radon, termite, chinese drywall, EIFS, any ancillary services etc…

Illinois has no requirements, but I won’t do it without E & O and GL.
And that is what I was wandering, do you base your insurance on the normal selling price of the homes you’re inspecting or do you go way above that, just to cover yourself.
Thanks William

I just spoke with them on the phone and the are in the process of expanding into Canada within the next 2 or 3 months. I’m interested to see what type of quote they can offer to us Canadians.

I just finished switching over our E&O/GL insurance to InspectorPro/Citadel. Was able to increase our coverage quite substaintally and am paying less. The process was very quick and easy from Quote to binding the policy. I worked with Thomas Christopherson.

Nice.