Texas E&O, 250K for $850

[Emmanuel J. Scanlan]

Originally Posted by gromicko

It doesn't indemnify agents, a selling point many inspectors exploit in an effort to recoup premiums.

I will not disagree with that point. But for other than that reason please answer these questions:

1. If an agent has done nothing wrong during a transaction then why should they be concerned?

2. E&O costs for Agents are significantly less than for HI's allowing them to buy much larger coverage for much less of a premium. Why would the agent need the HI's E&O to cover them?

3. Again, other than your point above and inclusive of any referring party, what benefit does referring party coverage provide to the HI?

[Nick Gromicko]

Manny writes:

I will not disagree with that point. But for other than that reason please answer these questions:

1. If an agent has done nothing wrong during a transaction then why should they be concerned?

2. E&O costs for Agents are significantly less than for HI's allowing them to buy much larger coverage for much less of a premium. Why would the agent need the HI's E&O to cover them?

3. Again, other than your point above and inclusive of any referring party, what benefit does referring party coverage provide to the HI?

1. An agent who has done nothing wrong should be concerned about being sued for the same reason a home inspector who has done nothing wrong should be concerned about being sued... legal defense costs.

2. I don't know if agents need it. Agent need is not a reason to buy E&O that covers the agent who referred you from negligent referral claims. Marketing YOUR business is. Why do something to assist some real estate business? You have enough work to do running your own business. Buy E&O that covers the agent that referred you because it helps YOUR business, not the agent's.

3. A powerful marketing benefit to the HI's business.

[Nick Gromicko]

FREA at www.frea.com includes free negligent referral coverage for the agent that sent the work your way... at no additional cost.

And if you are a Certfied Master Inspector www.certifiedmasterinspector.org you also get free zero deductible.

[Henry Valenzano, CMI]

Originally Posted by gromicko

FREA at www.frea.com includes free negligent referral coverage for the agent that sent the work your way... at no additional cost.

And if you are a Certfied Master Inspector www.certifiedmasterinspector.org you also get free zero deductible.

And that Zero deductible looks great on the proof of insurance letter.
When i submitted my proof of insurance to a builder his eyes almost poped out

[Emmanuel J. Scanlan]

Originally Posted by gbell

Hi Manny,

If he can't then maybe we can find out who the underwriter is so that we can have local agents inquire about it.

Greg,

Mr. Dupuis said to give him a call or email and he will provide needed information.

Mr. Robert Dupuis
Agent, Allstate
1333 W. McDermott Dr., Suite 200
Allen, TX 75013
Phone 214-547-7222
Cell 903-271-2460
Fax 214-547-0061
email RobertDupuis@allstate.com

[John McKenna]

Originally Posted by mboyett

Can someone explain that exchange to me? I have no idea what that means.

We just having fun with you.

[Barry Adair]

Satisfied clients are more willing and apt to refer than any agent (no conflict of interest) and they don't expect referring party coverage, just a thank you card and a goodie now and then because I want to not that they expect it. I like this idea more and more.

[Greg Bell]

Thanks Manny

I will contact him.

[Emmanuel J. Scanlan]

Originally Posted by gbell

Thanks Manny

I will contact him.

Greg,

You are most welcome. Hopefully you are able to use his information to your advantage.

I should have also mentioned Mr. Dupuis extended his offer of contacting him to anyone else out of the state of Texas. He will try to provide the information you need.

[John McKenna]

I just got this from Mr Dupuis the E&O broker.
Check it out.

I’m an insurance agent in Allen, Texas. When I heard of the legislative action affecting your industry, I went to work on getting all the facts and requirements they laid down on this, looking for a way to help.


Through a broker arrangement that recently opened up, affordable E&O is currently available through my agency in Texas from a top rated carrier. Coverage limits of $250K, $500K and $1MM are available.

Information is available for persons outside of Texas.

A new inspector just purchased a $250,000 policy for $880. No resume or financial statements are required. Financing is also available. If you’d like additional information give me a call or send an email. I’ll be happy to share what I know.

Robert Dupuis
214.547.7222
robertdupuis@allstate.com

Insurance provided by Westchester Fire Insurance Company, Roswell, GA. Prices vary. Deductibles apply.

[Ben L. Garrison]

I would STRONGLY suggest reading the entire policy. Particularly the exclusions. Generally when things look to good to be true, they are. Read the fine print because you don't want to find out something was excluded once it's too late.

[Emmanuel J. Scanlan]

Originally Posted by bgarrison

I would STRONGLY suggest reading the entire policy. Particularly the exclusions. Generally when things look to good to be true, they are. Read the fine print because you don't want to find out something was excluded once it's too late.

Hello Ben,

How about posting a copy of the actual policy/policies FREA is offering through their program. Please don't post the FREA advertisement but the actual policy with actual wording, clauses, etc. In that way we can compare what those policies offer with the one discussed here.

[Larry D. Kage]

Originally Posted by escanlan

Hello Ben,

How about posting a copy of the actual policy/policies FREA is offering through their program. Please don't post the FREA advertisement but the actual policy with actual wording, clauses, etc. In that way we can compare what those policies offer with the one discussed here.

Good idea...I'm betting it won't happen, though.

[Ben L. Garrison]

Why don't you get ME a copy of their policy so I can dissect it and decide, without bias, if what you're buying is legitimate. Don't you think that would make more sense considering I am in the insurance biz? For those of you who know me, and Nick can attest, know that I am a no b.s guy and will gladly offer my honest opinion.

Look, I'm not trying to tell you to buy insurance from FREA, not Allstate. I am just issuing caution. I think I speak for all the major E&O insurance operations across the country when I tell you that something is just not right with a $250K policy at $880. It simply will not work at that price. The claims Allstate will pay will definitely be FAR greater than the premium they collect. Unless there's a $10,000 deductible or something. And even then, I don't see it working long term.

To put this in a relative context, would you, as inspectors, be somewhat skeptical if all of a sudden a new Inspector pops up in town and is charging $35 an inspection? Would you question the quality and accuracy of the inspection? I would guess that you would. And who knows, this might be a legit program but it's worth doing the research rather than get burnt.

[Emmanuel J. Scanlan]

Originally Posted by bgarrison

Why don't you get ME a copy of their policy so I can dissect it and decide, without bias, if what you're buying is legitimate. Don't you think that would make more sense considering I am in the insurance biz? For those of you who know me, and Nick can attest, know that I am a no b.s guy and will gladly offer my honest opinion.

Look, I'm not trying to tell you to buy insurance from FREA, not Allstate. I am just issuing caution. I think I speak for all the major E&O insurance operations across the country when I tell you that something is just not right with a $250K policy at $880. It simply will not work at that price. The claims Allstate will pay will definitely be FAR greater than the premium they collect. Unless there's a $10,000 deductible or something. And even then, I don't see it working long term.

To put this in a relative context, would you, as inspectors, be somewhat skeptical if all of a sudden a new Inspector pops up in town and is charging $35 an inspection? Would you question the quality and accuracy of the inspection? I would guess that you would. And who knows, this might be a legit program but it's worth doing the research rather than get burnt.

Ben,

You have just slapped the face of every Inspector on this board (not to mention all others). Do you believe that Inspectors are not intelligent enough to perform a basic comparison of insurance policies? I can not speak for other Inspectors but I for one am offended that you feel an Inspector is incapable of doing this!

Now to answer your questions:

Why don't you get ME a copy of their policy so I can dissect it and decide, without bias, if what you're buying is legitimate. Don't you think that would make more sense considering I am in the insurance biz?

First off to answer your question no I do not necessarily think that makes more sense as I am quite capable of such a simple process as comparing insurance policies. I am required to spend thousands of dollars every year on my insurance needs and perform comparisons quite frequently to ensure I am receiving what I am paying for.

Your statement infers that there is much more behind the scenes in the insurance business that we as consumers of the product are not allowed to know. What might those conditions/circumstances be?

I think I speak for all the major E&O insurance operations across the country when I tell you that something is just not right with a $250K policy at $880. It simply will not work at that price. The claims Allstate will pay will definitely be FAR greater than the premium they collect. Unless there's a $10,000 deductible or something. And even then, I don't see it working long term.

It is interesting that you have become the voice for the E&O insurance industry. Your words here indicate that behind the scenes in the E&O industry there is far more to be known that the consumer is allowed. Is there price fixing occurring within the industry?? Why will it not work?

Could it be that the underwriter of this policy is attempting to use this as a marketing ploy, while still providing proper coverage, to draw in a major portion of the E&O business as well as the GL, etc.? Could it be a new underwriter in the HI E&O business willing to take a chance that claims will not exceed revenue from premiums in an attempt to gain the business? Of course only the underwriter can truly tell us that.

To put this in a relative context, would you, as inspectors, be somewhat skeptical if all of a sudden a new Inspector pops up in town and is charging $35 an inspection? Would you question the quality and accuracy of the inspection? I would guess that you would.

You are certainly reaching with the $35 inspection price reference. Although we are constantly battling the $99 Inspector. Of course if you read the many threads regarding this you will see it has been hashed out many times.

And who knows, this might be a legit program but it's worth doing the research rather than get burnt.

You are ABSOLUTELY CORRECT regarding this statement. It could very well be legitimate and that is why those interested in this offering are doing their research. However, you seem to have issues with providing actual copies of the policies your various underwriters use. Why and how can we do our research if you do not provide those? We already know what your premium prices are so we do not need to file an application with FREA to obtain copies of the contracts. So why are you so hesitant in providing the contract wording?