Originally Posted By: jtedesco This post was automatically imported from our archived forum.
Question: What areas should the Home Inspector be more familiar with in order to lower their liability?
I have been advised that electrical systems are very low on the list of
problem areas.
I have also been advised that the biggest liabilities that Home Inspectors have are in the area of structures and roofs, and that electrical claims against them account for less that 5% of all claims against home inspectors.
Is this true, I need to be educated and would like the opinion of others.
Originally Posted By: gbeaumont This post was automatically imported from our archived forum.
Chris Butler (FREA) wrote:
without divulging trade information that is proprietary, I can answer you this. Most claims come from the following four areas - Structural - 32%, Roofs - 18%, water penetration - 12% and termite - 8%. If these areas could be improved on - great! I really think that claims would go down if these areas were improved upon. I don't think rates would follow though - considering the "hard" market mentality of the industry still and more importantly the lack (from a carrier's standpoint) to insure a very high risk industry. But so you and others know - 70% of the claims we get are frivolous and 50% of those the HI denoted and referred the problem to an expert. Only to have the Homeowner sue you anyway. The other huge issue is the follow-up that a homeowner gets from the HI after the inspection is done. Many cases could have been avoided if the HI would have called back the homeowner and come to a resolution on an issue. We see claims that could have been avoided if the HI would have just simply returned a phone call.
I hope this helps, as I am not a liberty to share a carrier's actuarial numbers as they are not mine to give out. Since we are really ultimately the customer with many members.
Originally Posted By: rray This post was automatically imported from our archived forum.
No, Joe, it’s an overall jab at the industry and our various standards, either locally, by county, by state, by trade association, whatever. Even when something should be obvious, we don’t always “see” it. Some say Zinsco’s okay, some say not. Etc.
Originally Posted By: jtedesco This post was automatically imported from our archived forum.
Now I get it! Ok, the root of all evil, and that from a wannabe official who has a one track mind, sort of like the guy who was taught to put the toilet paper roll with the spin to the bottom!
That's the way it were shown to me they say!!
Real goofy type dude!
Or what about the official who insists that the receptacle grounding terminal be positioned in the up position!
I know who they are, and most of the time they are full of waste treatment matter, but they are the boss and you shall do what they say!
Now we need case histories and you I am sure can develop the start of what could become a very long thread ... 
Originally Posted By: dbowers This post was automatically imported from our archived forum.
Joe -
Every year Bob Pearson with Marion Allan Insurance Group in Georgia goes to several national HI Conventions. He always has handouts from his companies files showing tidbits like the % of claims on HVAC, roofs, etc.
His charts also show the length of time after the original inspection that the lawsuit or claim was presented. Example: 48% in first 12 months; 25% in 2nd 12 months, etc, etc (his numbers are real figures - my numbers are just samples).
Electrical claims or lawsuits are small potatoes. The biggies are roofs, foundations, structural, furnaces and water intrusion.
The last numbers I saw from Allen Insurance (overa a year ago), the numbers were not that much different. Of course, I wasn't a member of NACHI then, so I had no place to post them.
