Liabilities in HI industry

[Kevin Luce]

Originally Posted by wsiegel

That is just the point. You do not need the knowledge of a man like Paul Abernathy do conduct the home insepction. YOU (are the expeer and) know when something needs to be repaired and in most cases replaced. If you are going to defer everything for further evaluation, what the heck is the client paying you for - so he can hire someone else to tell him what needs to be done. If it needs to be repaired / replaced, then tell you client that. The contractor will then have to do his own evaluation to determine what it will take to repair the item and he will give the cost.

I agree, further evaluation should not be used too often. Further evaluation does have its place. We have limitations as home inspectors and when there is a concern but yet we are restricted from inspecting any further, then "Further Evaluation" is the proper wording to use. Even though I do not use it that often, I do use it.

[Rick Maday]

Originally Posted by dedwards

There are those clients who will try to make every little problem yours and expect you to finance their remodel job. That is why the report must be thorough, with photos to back you up and no accessible areas skipped or omitted. Even then it still gets some. The decision to pay for a problem to go away is a personal one and each case is different. One has to look at the cost benefit payoff and be able to predict the outcome. It may be the most prudent way but often it isn't. In short, don't be too eager to take the client's responsibility for buying that POS.

Quick question about pictures.

Seems that most lawsuits stem from negligence (real or imagined). How can pictures of defects help, if pictures of defects are all that are taken ? (Odds are the suit will not include anything reported as defective)

In an earlier post Dale said, "I take a picture of my IR Thermometer pointed at a couple different supply registers and put those pictures in the report to show the unit(s) are functioning today."

How do you take pictures of other items to show that they were functioning as intended?

Thanks,
Rick

[Joe Funderburk, CMI]

You are probably statistically more likely to be involved in an automobile accident than you are to be sued for negligence in the conduct of an inspection. Therefore, an automobile claim is your greatest liability in my opinion. Make sure you have good insurance--maybe an umbrella policy.

[Dennis R. Goudreau]

make sure you have a clear & precise contract

[Robert M. Delre]

Originally Posted by jfunderburk

You are probably statistically more likely to be involved in an automobile accident than you are to be sued for negligence in the conduct of an inspection. Therefore, an automobile claim is your greatest liability in my opinion. Make sure you have good insurance--maybe an umbrella policy.

Really? I had always heard HI's get sured all of the time. Is what you say really true? Not compared with auto claims...but in general. Anyone else want to comment on this?

[Randy D. Stufflebeem]

Originally Posted by Robert M. Delre

Really? I had always heard HI's get sured all of the time. Is what you say really true? Not compared with auto claims...but in general. Anyone else want to comment on this?

Robert,
You ask a great question. You may not get to many replies simply because this is an open forum. We as home inspectors can't tell you exactly everything that needs to be said. In a closed forum, "sure," but this is one advertisement most don't want.
Good question though and I will agree with Joe F. add a good agreement, and quality work, no harm no foul
Randy

[Rickbunzel]

1. Pay the money to have a local contract or real estate lawyer review your agreement. Get it to the client in advance and request they review it.

2. Encourage clients to attend the inspection. I have had more issues come up from when the client isn't there. Irronically its those same clients that you never hear from until there is an issue...

3. I have a standard pre-inspection brief. Similar to reading them there rights. I define that I am doing a VISUAL inspections and will not see things that are not visible to me B) I am looking for major issues those costing more than $1,000 to repair. I may see minor issues and as a courtesy will document those also.

4. If I get a complaint I address it directly. All my comprehensive inspections include a 90 day home warranty through American Home Warranty. In most cases so far the warranty covers the small leaks, dead outlets etc. that have come up todate. If need be I will pay to make the situation right. I first offer a full refund which contractually is the limit of my liability. If things get ugly I will go up to deductable (since thats out of my pocket anyway) before I get my E+O company involved.

Todate almost 3,000 inspection later I have only given out 2 refunds.

Call it lucky or smart business....

//Rick

[Martin Pasquinelli]

If I knew then what I know now about liablity and home inspections, I would NEVER have started a home inspection business. If you build a successful inspection company, you will most likely deal with law suits.

[Rickbunzel]

Martin,

Liability is an issue with all businesses. My sister was a manager for McDonalds and they constantly were being threatened with suits "for food poisoning, I tripped in your parking lot, I found glass in my burger and the classic your coffee burned me". I know builders that have suits against them.

If someone is going to sue, they will sue. As a business owner, I see my role as to communicate our services, get written agreement on what we will do, deliver our services as stated, ensure we met the customers expectation and MOVE on. Can I still get sued, sure because lawyers will target all parties involved that why I carry E +O. Will they get anything out of me who knows but its not going to stop me from making money in this business!

//Rick

[Brian E. Kelly]

Originally Posted by ekartal6

I use short, right to the point statements. Here's my handrail boiler:

"Handrail to second floor is loose and cause significant injury if not repaired NOW."

Is this english?

[John McKenna]

Here is my boiler plate
"Client should refrain from dong swan dives from the second story landing"...

[Justin Watts]

When in doubt, recommend further evaluation by a specialist........and TAKE PHOTOS!!!!!!!!!!!!!!!! that's the key to your protection.

If you can't see behind a wall, but see moisture stains recommend futher evaluation by a specialist that may involve "destructive testing" to detect the source or additional damage.