Home Inspectors frequently ask me if having E & O Insurance is “worth it.” The unspoken subtext of the question, of course, is “Hey, if I never have a claim, haven’t I wasted my money?”
I guess that the answer would be “Yes”, if you felt the same way about any other line of insurance. If you never have an auto accident, never have a health issue, never have a house fire, never lose time from work due to sickness, have you wasted the money you spent on auto, health, homeowners and disability insurance?
The problem that I think that home inspectors have with legacy E & O insurers is that they don’t really trust them to do the right thing. And with some considerable justification.
I’m currently representing an Arizona inspector in a multi-party claim: the seller, a seventy-something woman, the real estate broker, a very successful entrepreneur and the inspector. The claimants are a real estate lawyer and his wife.
The lawyer-claimant wrote the Mother of All Demand Letters, a real magillah, fourteen pages, that sought $150,000 in damages. My response, according to counsel for the other defendants, “really infuriated him.”
Well, good, I thought. My fastball has not lost any of its velocity.