standard pacific homes charlotte NC, bad news for buyers

[Bruce A. King]

I just found out that standard pacific homes in the Charlotte NC area is requiring unusual and unfair insurance for inspectors. Is this to keep us from inspecting their houses?

I used to inspect many of their houses but have not done any for a long time. Are they doing something to steer buyers away from an inspector they know is thorough?

One option for for buyers that are to far along in the process to back out is to go ahead and skip the inspection until you own the home and then submit everything under the warranty process. If it were me, I would make them put $5k in an escrow until I could get the inspector of choice in there to check it out.

Message to StanPAC:
Get real with your insurance requirements like the other builders and I will remove this public service message.
Don't use the excuse that your insurance company requires it, that is wrong, all you have to do is explain to them that inspection work is not construction work.

[Wayne B. Wilson]

How can these Companies do this? is there no requirements for insurance in that state?
if it is ok for the state then it should be acceptable to a builder. I would contact the state with a complaint.

[Wayne B. Wilson]

Perhaps a call to a local News company too

[Bruce A. King]

The media makes ad money from builders and agents therefore they don't like to expose them.

[Greg Bell]

They must be taking lessons from Florida builders.

[Chuck Lambert]

Originally Posted by gbell

They must be taking lessons from Florida builders.

and Standard Pacific here in California.

Chuck

[Chuck Evans]

I'm sure that the onerous insurance requirements that they place on buyer selected inspectors are no more stringent than they place on all of their own emplyees, subcontractors, vendors, salespersons, bank draw inspectors, appraisors, etc. Right? I mean they wouldn't do something so baltantly intended to deny their purchasers their right to have a private inspection would they??

If I were a homebuyer and was presented with this type of requirement, I would certainly ask the builder to demonstrate that they place the same requirement on all professionals who set foot inside one of their homes.

[Jeffery L. Haynes]

Today I sent the info they requested, will let you know what they say.
I know MI homes tried this before of which my client was ready to walk and they eventually allowed me to inspect the home.

I know builders are going everything they can to make sure a sale goes through however making HI's jump through hoops is the last thing they
need if they are wise...........its better to fix things now versus getting involved in a class action suit if they indeed are doing shoddy work.

[dquigley]

State Attorney General's office is where I would start. See if there is already a complaint of some sort filed, if not, file one.

[Joe Funderburk, CMI]

What exactly are they requiring, Bruce?

[prichardson]

If they have the same insurance requirements for all subcontractors, there is not much to be done. My insurance company makes me require general liability and workmans comp for anybody that goes on my jobsite. If a buyer request a Home Inspection before closing, the Home Inspector has to have the required insurance. If he does not, I have to pay for it when I have my annual insurance audit.

[Jeffery L. Haynes]

They just emailed me to let me know that while my E&O Ins. with the premise ride was fine, they didn't like my auto insurance coverage.

I advised them that it is my policy to park on the public street so what does my auto insurance have to do with doing a home inspection of one of their homes.

They obviously do not want their clients to hire an independent inspector to check out their homes...............I suspect its because they have shoddy homes and do want to lose the deal.

I will be making a page dedicated to builders like them who should be run out of business.

[Bruce A. King]

Originally Posted by jfunderburk

What exactly are they requiring, Bruce?

From this thread by Jeffery Haynes in members only section:

http://www.nachi.org/forum/f2/builder-hoops-52851/


Standard Pacific out of Charlotte require that HI's have a GL policy of at least $2,000,000; Automobile of at least $300,000.00 and Workers Comp of at least $500,000.00.


I have the best insurance available for home inspectors but can't get those ridiculous coverages.


I'll give a discount to any homeowner that wants a Standard Pacific Home thoroughly inspected after ownership has been transferred to them.

[Bruce A. King]

Originally Posted by prichardson

If they have the same insurance requirements for all subcontractors, there is not much to be done. My insurance company makes me require general liability and workmans comp for anybody that goes on my jobsite. If a buyer request a Home Inspection before closing, the Home Inspector has to have the required insurance. If he does not, I have to pay for it when I have my annual insurance audit.

Is it a "jobsite" after the CO has been issued?

[Jeffery L. Haynes]

Originally Posted by prichardson

If they have the same insurance requirements for all subcontractors, there is not much to be done. My insurance company makes me require general liability and workmans comp for anybody that goes on my jobsite. If a buyer request a Home Inspection before closing, the Home Inspector has to have the required insurance. If he does not, I have to pay for it when I have my annual insurance audit.

Don't know who you use but I have been building homes in North Carolina since the early 90's and I have never been audited on an inspector of whom I did not hire. It's total BS as far as I am concerned.

Jeff