home inspection report

Only 1% of All Home Inspection Claims Have Merit

Only 1% of Home Inspection Claims Have MeritA home inspector who serves on his state’s licensing board told me that 6% of the licensed inspectors in that state had claims brought against them and that 90% (yes, 90%) of those claims had merit.

Those numbers were completely at odds with my experience where less than 1% of home inspection claims have merit, so it made me wonder if the insurers on those claims were doing any investigation whatsoever or perhaps they just don’t know what constitutes a meritorious claim.

Let me tell them (and you) in this week’s ClaimsAcademy video blog. This is a valuable piece of home inspector training.
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Returning Your Faith in the Legal System

Returning Home Inspector's Faith in Legal SystemMany home inspectors have little faith in the legal system, and as an attorney in this professional space, I can see why. They believe (nearly 100% of the time rightfully so) that they are being wrongfully sued, poorly defended and thrown under the bus to the tune of an expensive deductible and a professional black mark.

It doesn’t have to be that way. Attorneys actually appreciate being told that their recently-sent demand letter is hogwash (that’s a legal term) and that the claim has no legal standing for a litany of reasons. Instead of getting a check back in the mail, when a claimant’s attorney hears from me, he or she knows that pursuing the claim wouldn’t be beneficial to their client, and in turn their OWN professional reputation.

How can I return your faith in the legal system? Watch this week’s video blog for more details on an approach that makes the legal system work like it should.
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Insurance Companies Want Home Inspection Claims to Live

Insurance Companies Want Home Inspection Claim to LiveHome inspectors are EASY targets. It’s a sad fact that many home inspectors are victims of meritless claims while receiving little assistance of those they thought could be counted on: their insurance company.

Many home inspectors are SHOCKED that their insurance company would settle a meritless claim or offer up their deductible to the complaining client. These inspectors also work with attorneys who rack up legal fees before settling the claim for nuisance value.

Why is this the case? I talk about working with professionals who align with your values and beliefs in this week’s video blog.
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New Negotiation Rules for Home Inspectors!

New Negotiation Rules for Home InspectorsCan anyone alter a contract even if they aren’t the company that drew it up? Absolutely.

What if a client and/or his attorney wants to remove the arbitration clause or statute of limitation clause from your home inspector pre-inspection agreement? Is this worthwhile to you and can you use the omission of these clauses to your advantage?

Joe Ferry answers these pressing questions in this week’s ClaimsAcademy video blog below. (more…)

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3 Ways a Home Inspector Can Eliminate Anxiety and Sleepless Nights

Ways to Reduce Anxiety and Sleepless NightsAs a professional home inspector who cares about your craft, the anxiety center in your brain likely never turns off. It causes you to sit up or pace the halls at 2 a.m. unable to sleep and left wondering if you missed a leaky pipe or something else critical during a home inspection the preceding day.

A client, who is all too interested in whether you are insured, is likely to trigger this anxiety center. And this client isn’t an anomaly, but rather the type A client you see and hear from time and time again.

How can you reduce this anxiety and work without worry? Follow a few simple cardinal rules I outline in this week’s ClaimsAcademy video blog.

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E&O Insurance Is Even For The Mistake-Proof Home Inspector

E&O Insurance for the Mistake-ProofHome inspectors often ask me, “Should I have professional liability insurance?”

Conceptually speaking, anyone who offers professional services for a fee has potential liability exposure of unknown magnitude. The genius of insurance, however, is that it converts an uncertain, potentially devastating loss into a known, small cost for which you can budget.

With that said, many inspectors still inquire about E&O insurance’s relevancy and necessity in the profession. I detail the pros of having E&O insurance as part of your liability protection in this week’s video blog.
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Stop Refunding Home Inspection Fees

Keep Your Hands in Your PocketsRefunding fees to every unhappy client is a revenue-crippling business model.

You are a home inspector, not a psychic. You can’t predict the future. So, when a monsoon hits your area six months after an inspection and a client resurfaces to complain about water intrusion through the siding, you need to ask yourself this question.

“Is my client unhappy with me and my inspection or is he dissatisfied with the result? And if the result has nothing to do with the quality of my inspection, why am I refunding his fees?”

I examine this issue in more detail in this week’s ClaimsAcademy video blog.
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Make Sure Your Clients Read the Inspection Report

Read Home Inspection ReportA home inspector’s friend was recently buying a home and had a home inspection completed. However, he never read the inspection report!

When he took ownership of the home, he discovered a huge crack in the kitchen’s granite countertop, a defect that was never disclosed on the seller’s disclosure, BUT was detailed in the unread home inspection report.

What recourse, if any, does the new homeowner have? I detail what happens next as well as the importance of reading a home inspection report in this week’s video blog.
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Don’t Just Rate It, State It in Home Inspection Report!

Don't Just Rate It, State It in Home Inspection ReportWhat home inspection report methodology works best – narratives or checklists? Many home inspectors have varying views on this issue, but I provide a logical assessment in support of one of these methods from a legal perspective.

What method keeps your business safe? What method is more likely to safeguard you from reckless clients and their meritless claims? I analyze each method and their pros and cons in this week’s ClaimsAcademy video blog below.
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Why You MUST Follow Your SOP

SOP is Your Best FriendFollow your SOP. It’s a theme I ingrain in the minds of home inspectors who attend my Law and Disorder Seminar. It’s one of the 6 key strategies to diminish your chances of being successfully sued by an enraged, irrational client.

One thing that can NOT go unnoticed in the thousands of SOPs I’ve read across various states and professional organizations is this: “The home inspector is not required to:” followed by a litany of issues for which the home inspector is NOT responsible during a limited, non-invasive home inspection.

In this week’s video blog, I examine the SOP’s key elements and how to utilize your own SOP as a safeguard against clients who want to come after you for a result you did not cause and/or an issue you weren’t required to inspect.

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