Builder wants to be listed as additional insured on E&O

[Russel Ray]

Originally Posted by bking

I heard about a guy who moved a fridge and ruined the vinyl flooring, when he turned it in on his GL, the insurance co applied it to his E&O policy which had a higher deductible. I think their angle was that he made an "error" by working outside the SOP. Maybe the builder knows about this angle and wants to cover all bases.

My GL is an integral part of my E&O policy, so it's really an E&O/GL policy. Maybe that's what happened there, too.

[bdoles2]

Originally Posted by bking

We have a few very small builders that get by with a lot of incorrect installations and don't know basic code but the larger, reputable builders welcome my inspections, I have saved several from massive disaster, structural issues, missing flashing, disconnected flue pipes, plumbing leaks, condensate leaks and attic stairs held in with finish nails to name a few.

Some builders actually recommend me to buyers even though I also include a thorough cosmetic punch list that probably takes 1-2 guy's about 1-3 days to correct.

Yes, the smart builders see the inspection as almost a last "quality control" step and encourage them. I love doing the new homes.

[bdoles2]

Originally Posted by bking

I heard about a guy who moved a fridge and ruined the vinyl flooring, when he turned it in on his GL, the insurance co applied it to his E&O policy which had a higher deductible. I think their angle was that he made an "error" by working outside the SOP. Maybe the builder knows about this angle and wants to cover all bases.

Hell, if I ruined a clients vinyl floor I sure has hell wouldn't turn it in to ANY insurance. I'd tell the client I'll replace the entire floor prior to them moving in, just pick out the flooring and I'll have it installed. I guarantee that would be much, much cheaper than a deductible.

Plus the client is happy they got a nice new floor that they picked out.

[Russel Ray]

Originally Posted by bdoles2

Hell, if I ruined a clients vinyl floor I sure has hell wouldn't turn it in to ANY insurance. I'd tell the client I'll replace the entire floor prior to them moving in, just pick out the flooring and I'll have it installed. I guarantee that would be much, much cheaper than a deductible.

Plus the client is happy they got a nice new floor that they picked out.

My GL deductible is $250. I can't have a brand new floor installed for $250.

[bdoles2]

Originally Posted by rray

My GL deductible is $250. I can't have a brand new floor installed for $250.

You live in CA.

I can't buy tea for less than $250 in CA.

[Russel Ray]

Originally Posted by bdoles2

You live in CA.

I can't buy tea for less than $250 in CA.

Tea? What's tea?

[bdoles2]

Originally Posted by rray

Tea? What's tea?

My bad, I forgot who I was talking with! LOL

[William J. Decker]

I have seen this, as well. The Builder is pulling your chain. I have insurance (E&O and GL, as well as bonding) and I just show up.

They have their "requirements" and I have mine. I work for the client, not them.

Most of the big builders, in this area, are writing into the contracts of sale a total prohabition of home inspections (even after the sale).

I point this out to my clients and go and do the inspection anyway (usually, after the sale, while it's still in the "warranty" period.

But, there have been a couple of times that I have been met by a couple of large union members with 2 x 4s in their hands. One time, I came out and found my headlights and tailights broken.

When confronted by this, I refer the "secretary" to my lawyer. He explains the law and threatens an injunction on the development.

Works every time.

Please, make sure that you retain a good real estate attorney who knows the law.

Many times, these putzes rely on the inspector's ignorance of the law. If you have a good lawyer on your side, the just back off and fade away.

Hope this helps;

[Dan Bowers, CMI]

I've had builders throw the GL & EO with them as added insures on my policy; tell the buyer I had to be in hard hat and steel toed shoes to go on site; etc

I'm just as polite as can be - I tell my buyer I understand completely and we need a copy of the builders GL & EO policy to name buyer and me on site to protect us AND since its a company policy about hard hats and steel toed shoes - ALL their employees or subs on site better be dressed the same OR I take photos and start shooting them to EVERY media source around, etc.

Has worked 99.9% of the time so far - put it back in their court.

[William J. Decker]

Originally Posted by dbowers

I've had builders throw the GL & EO with them as added insures on my policy; tell the buyer I had to be in hard hat and steel toed shoes to go on site; etc

I'm just as polite as can be - I tell my buyer I understand completely and we need a copy of the builders GL & EO policy to name buyer and me on site to protect us AND since its a company policy about hard hats and steel toed shoes - ALL their employees or subs on site better be dressed the same OR I take photos and start shooting them to EVERY media source around, etc.

Has worked 99.9% of the time so far - put it back in their court.

VERY GOOD!!!! The house is supposed to be complete and ready for occupancy. WHY, of WHY would the builder want to convey a house where the owners whould have to wear hardhats just to live there?

I nomimate you for the "Nick Gromicko, Well Thought Out, Sneaky Bastard Award!!!