To Insure or Not to Insure?

[John McKenna]

To Insure or Not to Insure?... that is the question.
Your honest feelings requested. No private info will
be made known when you vote.

[bjones1]

nuttin to hide here......I refuse to be a target.

[Keith Swift, PhD.]

I'll be the first to admit that not having insurance is probably a good way to make a lawsuit "go away." But, having insurance is a moral imperative for me. Insurance is an issue that I've been working very diligently on since I accepted the position of NACHI's VP, and I hope that I will be able to bring to good tidings very soon. If things go as I hope they will, rest assured that I will only grow rich in the knowledge that I helped the membership.

[John McKenna]

I heard one inspector put it like this...

You are in a war... protect yourself:

1- No insurance... no money for the lawyers... no law suite.
2- Hide and/or protect your assets... be creative.
3- Bankruptcy is not that bad, if you know what to do and run out
of options. You can make it.
4- Add up all the years you have not paid premiums... that is a lot of
money after a while. Put it aside in case you need a lawyer.
5- Create good relationships with your client... friends don't
sue friends easily.
6- Be a nit picky inspector - write good reports and educate your client.
7- Explain what an inspection is not about and create a
real world expectation.
8- Don't try to please the Realtor (death trap).
9- Read Keith's book ... "Inspect and Protect"... it's worth it.
10- Respond quickly to all complaints... offer to pay for your
honest mistakes and be helpful.

These statements are not the policy or opinions of NACHI, but
things I have heard from those in the trenches... this may not
work for everyone.

[Emmanuel J. Scanlan]

Originally Posted by jmckenna1

I heard one inspector put it like this...

You are in a war... protect yourself:

1- No insurance... no money for the lawyers... no law suite.
2- Hide and/or protect your assets... be creative.
3- Bankruptcy is not that bad, if you know what to do and run out
of options. You can make it.
4- Add up all the years you have not paid premiums... that is a lot of
money after a while. Put it aside in case you need a lawyer.
5- Create good relationships with your client... friends don't
sue friends easily.
6- Be a nit picky inspector - write good reports and educate your client.
7- Explain what an inspection is not about and create a
real world expectation.
8- Don't try to please the Realtor (death trap).
9- Read Keith's book ... "Inspect and Protect"... it's worth it.
10- Respond quickly to all complaints... offer to pay for your
honest mistakes and be helpful.

These statements are not the policy or opinions of NACHI, but
things I have heard from those in the trenches... this may not
work for everyone.

I can agree with all but two items:

9- Read Keith's book ... "Inspect and Protect"... it's worth it.

Never read it but expect it would be a good book. If Keith wants to send a free copy I'll read and give a review.

3- Bankruptcy is not that bad, if you know what to do and run out
of options. You can make it.

There are no longer any options in bankruptcy since the new laws came into affect. At least no options for the middle class such as ourselves. I was just explaining to my wife this morning about this very issue. It used to be the honest working person who made a mistake could wipe the slate clean and just have to suffer the stigmas of bankruptcy for 10 years. Bankruptcy no longer means wiping the slate clean as your creditors, as well as plaintiff's in lawsuites, can now hang judgments over your head forever. Very few bankruptcies now allow you to wipe the slate clean.

[John McKenna]

Originally Posted by escanlan

I can agree with all but two items:

9- Read Keith's book ... "Inspect and Protect"... it's worth it.

Never read it but expect it would be a good book. If Keith wants to send a free copy I'll read and give a review.

3- Bankruptcy is not that bad, if you know what to do and run out
of options. You can make it.

There are no longer any options in bankruptcy since the new laws came into affect. At least no options for the middle class such as ourselves. I was just explaining to my wife this morning about this very issue. It used to be the honest working person who made a mistake could wipe the slate clean and just have to suffer the stigmas of bankruptcy for 10 years. Bankruptcy no longer means wiping the slate clean as your creditors, as well as plaintiff's in lawsuites, can now hang judgments over your head forever. Very few bankruptcies now allow you to wipe the slate clean.

You are correct... it is no longer an easy solution like it used to be.
But with some imagination and preparation... a person can still
survive and not be thrown on the street. This option is for folks
who are backed into a corner of absolute survival. Since most
people do not even consider the possibility... they have never
looked at the options on the other side. I am not promoting
the idea, just offering an opinion. The more you know about
your survival options, the less afraid you will be if that day should
ever come. I suggest that people always have a second trade
or income stream to fall back on also.

Keith's book... to INSPECT AND PROTECT is worth the money IMHO.
It has a lot of good information...

[mthomas2]

As I understand it, not forever, for 5 years, if your family income is above the average in your state. IMO that's a pretty perverse incentive: if your marriage is already under stress (typical, in a bankruptcy situation) you have the choice of staying married, and burdened with payments, or divorcing, and getting one or both your individual incomes under the state average.

[William J. Decker]

Would you go to a Doctor who didn't have malpractice insurance?

It is a necessary evil, I believe, in this business.

Of course, in states with licensing, there are less lawsuits (in Illinois, there have only been two in the 6 years since licensing) because the state is authorizing you and, if you follow the law, you are somewhat insulated.

At least according to my lawyer.

[Blaine Wiley]

Originally Posted by wdecker

Would you go to a Doctor who didn't have malpractice insurance?

Yes. Mine doesn't and has a sign in the lobby stating such, and the fact that in 32 years of medical practice he has never been sued.

E&O insurance is a business decision, unless you are unfortunate and live in a state that requires it.

[Doug Edwards]

You have to ask yourself why building contractors do not carry E&O insurance. It is a rhetorical question of course.

[Roy D. Cooke, Sr]

After seeing how the Insurance companies will not stand up to frivolous claims they pay and get the money from the Home Inspector as it usually is under the deductable.
I will as long as possible never ever again have Insurance .
Lots of proof this happens.


Roy Cooke

[ekartal6]

There are many exclusions in a home inspector's insurance coverage. Be sure you know what they are. If you miss a foundation crack and the basement floods guess who's paying for the water damage?

[John McKenna]

Originally Posted by rcooke

After seeing how the Insurance companies will not stand up to frivolous claims they pay and get the money from the Home Inspector as it usually is under the deductable.
I will as long as possible never ever again have Insurance .
Lots of proof this happens.


Roy Cooke

Good point Roy... very true.

Also... 25% of all doctors who have insurance have been sued
for malpractice. I am sure the lawyers love doctors even more than
they do inspectors...

In Texas, we have something called the Inspectors Recovery Fund.
The money is sitting there to pay off people who win a law suite
against an inspector. The lawyers have to go through the whole
process before they get the money.

The Inspector must pay back the money if he looses and his
license is suspended until he does.

[Brian E. Kelly]

Excellent points, and after reading this thread I have canceled my HI E&O insurance, my auto insurance, my home owners insurance, and my renters insurance as I do not need to be attracting an over zealous attorneys.

I must not be alone and am sure those with out E&O also self insure their automobiles.

[Jeffrey R. Pope]

My E&O premiums are marketing $$$$, well spent