Liabilities in HI industry

[Robert M. Delre]

Okay guys...In your opinion, what are the biggest liabilities that Hi's have to be concerned with and why?

Bob

[James H. Bushart]

The findings in their reports....because they are accountable for them.

[rgrizzle]

not so much the findings, as it is what isn't found. We miss something and then we get it stuck to us.
I would say biggest liability is inexperience... plain and simple. Know what to look for and why.

[Tracy Schoop]

The single largest problem would be how home inspector's write reports. Using the "boxed" home inspection software programs have hurt many. What I mean is that home inspectors who use many of the home inspector software programs become too dependent on them. Most of these programs are very passive in they way the describe what the problems are.

My suggestion is to get rid of 90% of the boilerplate information and write your own in a manner that sounds like you are talking. This would be called conversational English or reporting.

Just last week we (my partner and I) tried to help a poor home inspector over in North Alabama, who was being sued over his inspection. It all revolved around a poorly written report that was the product of an out of the box home inspector software program that is supported on this website and used by many inspectors. Sad to say the we informed his council that it would be best to settle.

[Robert M. Delre]

Okay...I got three replies all revolving around reporting...lets keep going. Where does the E&O ins come into play in regards to lawsuits? If by chance, I do miss something, how exactly does it all play out.

[Tracy Schoop]

E&O will pay for your defence in the event that you are sued. If you mess up and miss something small such as a garage door, rotted trim or window, etc. Then you should not depend on your E&O to bail you out.

Keep in mind that E&O only comes into play if your are sued. The object is not to have claims, and if you are careful and report what you see you should be fine.

You also have to set your clients expectations. They need to understand what you do and what you don't do. Just as you need to know what they are looking for in a home inspection.

A good contract helps. Some home inspector, I don't recall his name but he has in his contract that he is not "Superman" and that he can not see under ground, etc. Kind of gets the point across.

[wsiegel]

The biggest liability is not only what you write, it is not what you write. Boiler plates dont always help you. As an example, if you have rafter damage (in this (my) case termite damage) it was well identified and yes, the disclaimer from the termite compnay stated that we cannot see hidden damage, as did my contract, but I did not go far enough in explaining to the customer that he needed to do a more intensive type inspection to determine the extent of that damaged and, becuase there was truss damage, that he should have it evaluated by a structural engineer. And of couse, when the client now calls in his own termite company, it is so much easier for them to find more damage.

Also, now do you handle expectations. Lets take an air conditioner for example. I have read many things on this board regarding functionality and age. Many people write it is old, but functional, and leave it up to the client to decide what to do. Then the AC company goes in to clean the coils and infoms the client that they are too rusty to pull out and they need to be replaced, and, due to the age of the unit, replacement is not worth it and the system needs to be replaced. Now the call comes from the client wanting to know why they were not told that it should be replaced. I try to equate these situations (before they arise) into something the client can understand. I usually use the car equation. In Florida, an AC unit has a life expectancy of 12 years. When I get one this age i equate it to a car that has 100,000 miles on it. It is out of warranty, is going to need repairs, and it is time to consider replacement. Once they understand that, they can make up their own mind, but now at least they have something to base it on.

Too many inspectors are afraid of causing the realtor to loose a deal and will not lay the truth on the line for their client. But down the line, when something happens, that realtor is the first one to throw the inspector under the bus. Do the math. Take 100 inspections at $300.00. That equals $30,000. One bad AC is worth 10% of that and a roof can be worth up to half that amount. Telling your client what is wrong and what to expect, and including age into that factor can save you down the road. Screw the realtor who only wants to know that that 18 year old shingle roof is leak free and water tight. He doesnt give a crap that it may need to be replaced next year. But I can bet your client will.

[Robert M. Delre]

Thanks Tracy...anything that ever pop's into your mind, that you think I need to know, please write me about it. Don't think it is too simple and assume I know it. I want to know. I need all the information I can get. As i research, more questions pop into my mind. I also know that there are many other questions that won't pop into my mind. This goes for everyone on here. OK? I am here to learn learn learn.

[Robert M. Delre]

Originally Posted by wsiegel

The biggest liability is not only what you write, it is not what you write. Boiler plates dont always help you. As an example, if you have rafter damage (in this (my) case termite damage) it was well identified and yes, the disclaimer from the termite compnay stated that we cannot see hidden damage, as did my contract, but I did not go far enough in explaining to the customer that he needed to do a more intensive type inspection to determine the extent of that damaged and, becuase there was truss damage, that he should have it evaluated by a structural engineer. And of couse, when the client now calls in his own termite company, it is so much easier for them to find more damage.

Also, now do you handle expectations. Lets take an air conditioner for example. I have read many things on this board regarding functionality and age. Many people write it is old, but functional, and leave it up to the client to decide what to do. Then the AC company goes in to clean the coils and infoms the client that they are too rusty to pull out and they need to be replaced, and, due to the age of the unit, replacement is not worth it and the system needs to be replaced. Now the call comes from the client wanting to know why they were not told that it should be replaced. I try to equate these situations (before they arise) into something the client can understand. I usually use the car equation. In Florida, an AC unit has a life expectancy of 12 years. When I get one this age i equate it to a car that has 100,000 miles on it. It is out of warranty, is going to need repairs, and it is time to consider replacement. Once they understand that, they can make up their own mind, but now at least they have something to base it on.

Too many inspectors are afraid of causing the realtor to loose a deal and will not lay the truth on the line for their client. But down the line, when something happens, that realtor is the first one to throw the inspector under the bus. Do the math. Take 100 inspections at $300.00. That equals $30,000. One bad AC is worth 10% of that and a roof can be worth up to half that amount. Telling your client what is wrong and what to expect, and including age into that factor can save you down the road. Screw the realtor who only wants to know that that 18 year old shingle roof is leak free and water tight. He doesnt give a crap that it may need to be replaced next year. But I can bet your client will.

Another case of where INTEGRITY protects. Good job! Keep feeding me anything and everything you guys think I need to know about anything and everything. say that three times fast. ha!

[John McKenna]

When the AC system is old, but working, I write...

"The AC system is cooling, but old, and the client should budget for unexpected
repairs as the system reaches the end of it's usable life span. Recommend an
evaluation by a qualified HVAC Professional."

When I see sagging sheetrock with stains showing through that have been
previously repaired, I write...

"Previous repairs and stains in walls/ceilings in some areas may indicate there has
been previous moisture problems. It is unknown what conditions were present
at the time of the repairs and if proper methods were used during repairs.
(moisture problems can be conducive to fungi-mold, decay and wood
destroying insects that are not always visible). Recommend an inspection
by a qualified Professional."

I also tell them verbally the same things, so they have the proper expectation.
Setting the expectation is a delicate art.

[Robert M. Delre]

Originally Posted by jmckenna1

When the AC system is old, but working, I write...

"The AC system is cooling, but old, and the client should budget for unexpected
repairs as the system reaches the end of it's usable life span. Recommend an
evaluation by a qualified HVAC Professional."

I also tell them verbally the same thing, so they have the proper expectation.

Great stuff! This is what I am looking for now that I have learned from the others that have replied and explained a few things. I can save these and use this information to help me with all of my comment writings. Any others would be greatly appreciated.

[Randy D. Stufflebeem]

[quote=jmckenna1]When the AC system is old, but working, I write...

"The AC system is cooling, but old, and the client should budget for unexpected
repairs as the system reaches the end of it's usable life span. Recommend an
evaluation by a qualified HVAC Professional."

When I see sagging sheetrock with stains showing through that have been
previously repaired, I write...

"Previous repairs and stains in walls/ceilings in some areas may indicate there has
been previous moisture problems. It is unknown what conditions were present
at the time of the repairs and if proper methods were used during repairs.
(moisture problems can be conducive to fungi-mold, decay and wood
destroying insects that are not always visible). Recommend an inspection
by a qualified Professional."

I also tell them verbally the same things, so they have the proper expectation.
Setting the expectation is a delicate art.[/quote]
How true!!!
Excellent wording John! I wish we had something that we could use with wording such as the one you used. Kind of universal! That would be one big library but extremely useful. A greenie for you

Randy
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[Bob Elliott]

Robert.. it looks to me like the answer you are looking for is tell the truth in plain and simple language.
Do not try to hide lack of training in any system or componant by using fuzzy inspector speak.
There are a certain percentage of individuals whom can make generic talk an art form and most all of them are in politics.
Keep studying and never get over confident, nor assume a cleint knows anything.
I feel good in knowing I am trying to help someone and figure that is what really matters.
What you fear is often what you cause to happen, so just keep doing your best.

[Robert M. Delre]

Originally Posted by relliott

Robert.. it looks to me like the answer you are looking for is tell the truth in plain and simple language.
Do not try to hide lack of training in any system or componant by using fuzzy inspector speak.
There are a certain percentage of individuals whom can make generic talk an art form and most all of them are in politics.
Keep studying and never get over confident, nor assume a cleint knows anything.
I feel good in knowing I am trying to help someone and figure that is what really matters.
What you fear is often what you cause to happen, so just keep doing your best.

Very good point and I will keep studying and the others. But at the same time, knowing how to properly phrase things so that I am communicating both concern for the homeowner without placing myself in a adverse position accidentally, is also important.

Dad always said...good communication is someones greatest asset.

[Randy D. Stufflebeem]

Robert,
Joining I-NACHI can offer you added benefits that helps you with legal issues as well.
Randy