standard pacific homes charlotte NC, bad news for buyers

I just found out that standard pacific homes in the Charlotte NC area is requiring unusual and unfair insurance for inspectors. Is this to keep us from inspecting their houses?

I used to inspect many of their houses but have not done any for a long time. Are they doing something to steer buyers away from an inspector they know is thorough?

One option for for buyers that are to far along in the process to back out is to go ahead and skip the inspection until you own the home and then submit everything under the warranty process. If it were me, I would make them put $5k in an escrow until I could get the inspector of choice in there to check it out.

Message to StanPAC:
Get real with your insurance requirements like the other builders and I will remove this public service message.
Don’t use the excuse that your insurance company requires it, that is wrong, all you have to do is explain to them that inspection work is not construction work.

How can these Companies do this? is there no requirements for insurance in that state?
if it is ok for the state then it should be acceptable to a builder. I would contact the state with a complaint.

Perhaps a call to a local News company too

The media makes ad money from builders and agents therefore they don’t like to expose them.

They must be taking lessons from Florida builders.

and Standard Pacific here in California.


I’m sure that the onerous insurance requirements that they place on buyer selected inspectors are no more stringent than they place on all of their own emplyees, subcontractors, vendors, salespersons, bank draw inspectors, appraisors, etc. Right? I mean they wouldn’t do something so baltantly intended to deny their purchasers their right to have a private inspection would they??

If I were a homebuyer and was presented with this type of requirement, I would certainly ask the builder to demonstrate that they place the same requirement on all professionals who set foot inside one of their homes.

Today I sent the info they requested, will let you know what they say.
I know MI homes tried this before of which my client was ready to walk and they eventually allowed me to inspect the home.

I know builders are going everything they can to make sure a sale goes through however making HI’s jump through hoops is the last thing they
need if they are wise…its better to fix things now versus getting involved in a class action suit if they indeed are doing shoddy work.

State Attorney General’s office is where I would start. See if there is already a complaint of some sort filed, if not, file one.

What exactly are they requiring, Bruce?

If they have the same insurance requirements for all subcontractors, there is not much to be done. My insurance company makes me require general liability and workmans comp for anybody that goes on my jobsite. If a buyer request a Home Inspection before closing, the Home Inspector has to have the required insurance. If he does not, I have to pay for it when I have my annual insurance audit.

They just emailed me to let me know that while my E&O Ins. with the premise ride was fine, they didn’t like my auto insurance coverage.

I advised them that it is my policy to park on the public street so what does my auto insurance have to do with doing a home inspection of one of their homes.

They obviously do not want their clients to hire an independent inspector to check out their homes…I suspect its because they have shoddy homes and do want to lose the deal.

I will be making a page dedicated to builders like them who should be run out of business.

From this thread by Jeffery Haynes in members only section:

Standard Pacific out of Charlotte require that HI’s have a GL policy of at least $2,000,000; Automobile of at least $300,000.00 and Workers Comp of at least $500,000.00.

I have the best insurance available for home inspectors but can’t get those ridiculous coverages.

I’ll give a discount to any homeowner that wants a Standard Pacific Home thoroughly inspected after ownership has been transferred to them.

Is it a “jobsite” after the CO has been issued?

Don’t know who you use but I have been building homes in North Carolina since the early 90’s and I have never been audited on an inspector of whom I did not hire. It’s total BS as far as I am concerned.


You could always let it be known that you will do the inspection after closing with a sizable discount to the buyers and go through the home with a fine tooth comb, build an extensive warranty inspection report upon completion with digital photos. One thing, you would probably have more work than you could handle once word got out among “new home” buyers, especially if you advertise it. Where is it written you have to wait until a year to do a warranty inspection (here is where you sell your one year warranty inspection prior to the one year anniversary). I once had an out of State buyer couple who tried unsuccessfully to get their contractor to do an honest assessment of the home prior to the closing. They were coming into town the day before, contractor did just what you described. I went in a couple days after closing, ended up with four pages of discrepancies ranging from electrical to loose toilets in all the baths because the tile setters did not want to be responsible for tightening the closet bolts. There was also a missing truss in the attic. This was NOT a spec home but one of the premier builders. It was a VA loan and I just happen to mention that the Veteran’s Administration would probably not smile on this kind of shoddy work…if they ever got wind of it. The VA inspector must have been blind or just plain ignorant. When they got the punch list of items they were pissed but they knew it was right and had to send out all kinds of tradesmen to correct the problems. Real piece of work. They knew the buyers were not on scene so they were going to just screw them. Whooops! Really big nice home…on the surface.
New homes are easy to inspect; clean, no furniture, easy to see everything.

I am contemplating on offering the client a free inspection after he buys the house just to satisfy my curiosity. Its a 3 story so if it would be one of the first times I would not use a ladder but what the heck, I could just ride my motorcycle over there.

I never do anything for free but have been known to knock off $100 or for half. If it’s free they may not place much value on it if you don’t. Your time is worth something. I have never NOT found something significant. For example, did one in a gated community (new home), again an out of state buyer, retired Marine Corps Major. It had the EIFS system without any kickout flashing at all the needed spots as well as a ridge vent without the sheathing removed so the vent would actually work (contractor tried to blow smoke up both our butts saying it wasn’t necessary since it also had soffit vents), faulty GFCIs (wired backwards) in kitchen and whirlpool tub and a host of other things. If the Major had waited until his one year anniversary inspection on the kickouts he would most likely already have extensive water damage inside his walls and attic areas. This way he avoided a lot of headaches and expenses.

GL 2 million is not a problem to get. 300K on auto is easy also most insurance companies require that when you finance any automobile nd 500K WC not a problem either. I have been inspecting Standard Pacific homes here in CA for years. I carry what they require and it has returned 10-12 fold. Word gets out that you meet their requirements and the phone then begins to ring.


I forgot to update this thread, they have made the insurance requirements reasonable now and I have been inspecting their homes.