Hello All,
I just came to know insurance companies do not cover walk thru inspection because there is nothing to defend for as we don’t give inspection report. What’s your guidance on it? Are you still taking risk? Or if there any other way to provide walk thru inspection service?
Because of the cursory nature and the high probability of missing something, I won’t do a walk through inspection. The client expectation is that you will find all the major issues. That’s why they want a walk through inspection. Unless you follow your regular home inspection work flow, missing something major has a high probability of happening. Then, what is the outcome if it gets to a client attorney/your E&O insurance attorney? You are the professional, the client is the less informed home buyer. You’ll be forced to settle and pay out $$$. Don’t be desperate for risky revenue like this.
I don’t do walk through inspections. For me, those requests are a sales opportunity that often turn into a full inspection.
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I agree with Mike, that, and in Ohio it’s not allowed.
Division of Real Estate and Professional Licensing:
In the event you are appearing at a showing with a home inspector, remember that home inspections must be performed by a home inspector who is licensed by the Division of Real Estate and Professional Licensing, unless a statutory exemption applies.
The Division of Real Estate and Professional Licensing recently reminded licensed home inspectors that “any visual examination of the readily accessible components of a residential building for a client by a home inspector is a home inspection and must comply with Ohio license law and regulations set out by the Ohio Home Inspection Board.” Home inspectors are not allowed to provide oral reports of a home inspectors finding to any client or agent of a client. There is no getting around this. If your buyer contracts with a licensed home inspector to conduct an inspection of a property, they must follow Ohio license law and regulations as set out by the Ohio Home Inspection Board.
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An attorney that specializes in inspector E/O insurance has said previously on this forum that a report must be delivered in order to have coverage from his company. The report doesn’t have to be anything special, even just an email summary could suffice.
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I am in Winnipeg, I am only one who doesn’t provide this service and others are taking lot of business due to this. So, how come others are doing this? Are they just taking the risk or is there any loop hole
Talk to your insurance agent. Will they cover you if there is a dissatisfied client armed with an attorney? I don’t recall if I’ve been “too busy” to do an inspection, but when in construction, I became “too busy” for a number of prospective builds. I also took on a couple that I should have been “too busy” for, regretting it big time ($$$$). Are you willing to risk someone asking you to cough up $10,000 or more for something “that was obvious and should have been seen by the inspector?”
Decide based on your own exposure and risk. Don’t let the competition decide for you. Turn those requests into a full paid inspection!
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I liked your saying “Don’t let competition decide”
Thanks Michael for the message
IMO… They are desperate for work and have bills to pay, and Realtors/Agents love ‘walkthroughs’… it helps them sell homes and you takes all the risk!!
I could say a bit more about that, but I won’t, with the exception of… they will be out of work in due time and you won’t have to worry about them much longer!
The problem with Ohio, and every other state where I have worked, is that there is too much government bureaucracy. There are multiple governmental agencies that claim jurisdiction. The problem is that they often overlap.
I’m sure you remember the guy who said that we can’t remove electrical panel covers. I’ve had a relationship with OCIEB/OCILB since its inception, so I contacted them first. I then contacted every agency that potentially has jurisdiction. The good thing on that particular topic was that none of the agencies claimed exclusive jurisdiction. That, however, is not always the case.
I stopped referring to myself as a home inspector before the HI license law went into effect, but in anticipation of it. I started calling myself a construction consultant (but I got the license). There are at least half a dozen agencies that claim at least partial jurisdiction. Some say that what I do is OK. Others don’t agree.
In Michigan I was an approved instructor for multiple skilled trades through one agency and taught continuing education for skilled trades under their authority for many years. Then, another agency came along and said that we had to be a proprietary school to do the training that we were doing.
The Ohio HI people may claim jurisdiction over some of the things I do, but they won’t try to stop me either.
The same is true for both radon and WDI. I have never done radon, but I have done WDI with a license. Both agencies told me specifically that they don’t enforce the license even though their license requirements are clearer than the HI and some others.
Consequently, I have done many things with the philosophy that it’s easier to get forgiveness than permission.
To be clear, I have never done anything that I believed to be illegal. But, if one governing body says I can and another says I can’t, I’m going with the one that says I can.
The matter of removing panel covers was one of the few times when there has been agreement across all agencies that have jurisdiction. They all adamantly disagreed with the guy on here who said we can’t. At least three of the agencies knew exactly who I was talking about, the electrical safety inspector people, the HI people, and the OCILB.
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BTW… Did you do a Search on the MB Archives?
If you had, you should have found many threads on this topic. Also, one that included a post regarding what an Insurance Co. has to say about it.
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I’m assuming you are talking about “Waln-N-Talk” inspectoins where you just point out the issues as you walk around with your client? We never did them in my company, I felt that they were a diservice to our clients as well as to my company! Also, they are not permited in many of the licensed states.
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I didn’t find anything such “MB Archieves”
Another quick tip on this topic. If you decide to provide this service, DO NOT under any circumstance, refer to it as an inspection. Only call it a “consultation” or something similar. The service is not an “inspection” by any sense. It is more like a client bringing their Dad with to a showing.
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Guessing that most do not read the terms of their insurance policy or have one to begin with.
Some inspectors give repair estimates with the inspection report. Some E&O policies and state restrictions say it’s not allowed.
The real question is, is it ignorance or arrogance of those that don’t follow the rules?
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I think at the minimum you should do a 5 point inspection. HVAC,Electrical,Plumbing,Structure and Roof.
You are a Home Inspector, they are not. Focus on the client, not them.
Do what the client wants, but do your job.
That is: contracts, agreements, insurance and reports. Look into your provincial requirements.
(3) Purpose and Scope. TN Sate Rules
(a) Home inspections performed according to this rule shall provide the client with an
understanding of the property conditions at the time of the home inspection.(b) Home inspectors shall:
- Provide a written contract, signed by the client or the client’s legal representative
that shall:(ii) Describe what services shall be provided and their cost;
(iv) State, when an inspection is for only one or a limited number of systems or
components, that the inspection is limited to only those systems or
components.
- Submit a written report to the client that shall at a minimum:
(ii) State which systems and components designated for inspection in this rule
have been inspected, and state any systems or components designated
for inspection that were not inspected, and the reason for not inspecting(c) This rule does not limit home inspectors from:
- Excluding systems and components from the inspection if requested by the
client, and so stated in the written contract.
I have used this many times, but not to do a cheap, pretend Home Inspection. These inspections were in the thousands of dollars.
I did a “Walk Through” for a neighbor of a client I was working for. I stopped by on the way out and determined that Mom, Dad and three young kids were poisoned from carbon monoxide (medical verified)!
So there is a place for this, but not HI’s using Walmart marketing.
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