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.


Paying Out Your Dollars in All The WRONG Places

Tip #28 - Paying Out Dollars in Wrong PlacesThe No. 1 compliant I receive from home inspectors is that some insurance companies cave like tents and pay claimants even when the inspector did nothing wrong!

An insurance company’s only interest is in settling the claim on its own terms, not ones that are necessarily favorable to the home inspector. Accordingly, many home inspectors don’t adequately protect themselves. They carry high deductibles to lower premiums.

Yet, as I always say, you do NOT have to conduct a negligent home inspection to be accused of doing so.

I examine why and detail the near horror story of one home inspector in this week’s ClaimsAcademy video blog.


Understand Your True Liability and Risk

Tip 25 - Understand Your True Liability and RiskMany home inspectors are SHOCKED to hear that their corporate entities (sub-chapter S or limited liability corporations) do not insulate them from personal liability for doing a negligent home inspection.

These home inspectors say that their attorneys told them about this protection when they formed their corporations. It’s simply not true.

When can a disgruntled client come after the corporation for restitution? When IS the corporation sheltered against charges? I go through the initial myth and more in this week’s video blog.


Disclaimers Are Your Business’ Best Protection

I encourage home inspectors to utilize the proper use of disclaimers – and go into it in some considerablTip 24 - Disclaimers Are Home Inspectors Best Friende detail – during my Law and Disorder Seminar.

A knowledgeable home inspector knows that there are many issues concerning a home-buying decision that are NOT going to be uncovered during a home inspection. Unfortunately, your clients don’t understand this fact.

That very real disconnect is the reason why home inspectors should be incorporating disclaimers into their practice. I go through a few examples of proper disclaimer usage during this week’s video blog.


Home Inspector Selfie! Take More Photos During Home Inspection

Tip 23 - Home Inspector SelfieHome inspectors – I’m sure you are familiar with the “selfie” mantra of today’s youth. In essence, they love taking photos. You should have the same passion during a home inspection. Take photos of each room in the house, appliances, HVAC units and more. Take far more photos than required or that you will even put into the inspection report.

Why is taking so many photographs important from a legal perspective? I walk you through the protective process and highlight a specific home inspector’s plight in this week’s video blog.


Don’t Indulge Rage-Induced Home Sellers

Don't Indulge Rage-Induced Home SellersI’m starting to see a very disturbing trend developing between the home inspection industry and the real estate marketplace: non-client home sellers are bringing claims against home inspectors for the failure of their clients to follow through on the agreement of sale as a consequence of the home inspector’s findings.

Some of these frustrated sellers, desperately attempting to unload a home in a still slowly recovering housing market, vent their fury at the home inspector for a lost sale in entirely inappropriate ways.

How should you, the competent home inspector just fulfilling your professional duty, handle these angry home sellers when a filed complaint comes your way?

I go through how to squash these unreasonable requests in full force in this week’s video blog.

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