What to do? need advice

[pgreaux]

Hello,
Does anybody knows a good attorney in south Florida who is knowledgeable in Home Inspection litigation cases.
I have read so many contradictory statements regarding E&O insurance (having it versus not) that I am trying to find, not any real estate attorney to talk to but one who has some experience in defending a home inspector. I live in Pembroke Pines (between Miami and Fort Lauderdale) so anything within a 40 mile radius will do.
I was shocked when reading recently that the LLC status of a business is not of any help if the Home inspector(owner/operator) gets sued. From what I read, you can pretty much go bankrupt at a personal level even while operating a LLC. So, what to do? I just did an inspection yesterday (my first one!) but who knows when the next one will be? Is spending $4000 towards an E&O very wise at this point? I'll be happy if I make that much within the next 5 months.
If any new or part time home inspector out there had also a hard time deciding what to do, please let me know which route you ended up taking and why. Any advice will be helpful. Thanks

[James R. Szczesny]

Well I've been home inspecting 2 yrs now and never a day without E&O insurance. By far I think most quality inspectors seem to carry it. I do hear of inspectors haveing litigation appon them rarely. I have a lot more to loose than 4k a yr for Insurance especially as a newbee. Mine is up this month and I too am scratching everycorner for my yearly $4400. Yea it sucks but I seem to like being a home inspector. Hope this helps.

[Joe Farsetta]

Pat. I run an arbitration service. Call me and I gan probably give some advice. 303-591-9919 or 845-300-3440.

Call me...

[Joseph Burkeson, CMI]

Patrick,

The fact that you operate your business in Florida is something you can take comfort in because much of your personal assets are protected by the state such as your homestead, retirement funds and more. That was the primary reason that OJ Simpson made Florida his home once he had legal issues. You will discover that most home inspectors here in Florida do not purchase E&O. Check with your lawyer and don't make mistakes.

[Frank M. Carrio, CMI]

Originally Posted by pgreaux

Hello,
Does anybody knows a good attorney in south Florida who is knowledgeable in Home Inspection litigation cases.
I have read so many contradictory statements regarding E&O insurance (having it versus not) that I am trying to find, not any real estate attorney to talk to but one who has some experience in defending a home inspector. I live in Pembroke Pines (between Miami and Fort Lauderdale) so anything within a 40 mile radius will do.
I was shocked when reading recently that the LLC status of a business is not of any help if the Home inspector(owner/operator) gets sued. From what I read, you can pretty much go bankrupt at a personal level even while operating a LLC. So, what to do? I just did an inspection yesterday (my first one!) but who knows when the next one will be? Is spending $4000 towards an E&O very wise at this point? I'll be happy if I make that much within the next 5 months.
If any new or part time home inspector out there had also a hard time deciding what to do, please let me know which route you ended up taking and why. Any advice will be helpful. Thanks

Patrick,
I have been in this industry since 1972 and I have never carried Errors and Omissions Insurance.
I should also add that I have never had a complaint filed against me.

One thing that I would never do without and I would strongly advise you to have is "liability insurance".

I would advise you to check with your insurance carrier to see if you already have this insurance. If you are a home owner and/or paying a mortgage, or if you own a car you might already have this type of coverage.

The absolute best "Protection" that you can have it is a good strong educational background in this field. One thing I would advise you to do is to take the "NACHI examination" over and over and over again until you're consistently scoring in the high 90s.


As a member of NACHI you have an extensive amount of "free" education available to you and I would strongly advise that you take advantage of all the benefits offered to our membership.

• In this industry there's no such thing as "too much knowledge"!
• I also advise you to contact Joe Farsetta about the services.

Good luck!

[pgreaux]

Joe,
I decided to go with an E&O insurance so I don't think it would make sense to spend more money on an arbitration service. What do you think?

Joseph,
I know more or less about the protection that Florida offers but I still would hate to lose my business over a mistake some time down the line after years of hard work . Not that I don't have confidence in myself but one mistake/omission over years of inspections is not much and, I think, can happen to even the best inspector out there and could be all that is needed for some bad intentioned client to start the fire.

Frank,
I had to get liability insurance so that part is covered. I completely agree with your comment about having a good education which is why I spent the money, went to AHIT and use interNACHI daily to increase my knowledge. I love to learn and can read articles and books for hours but even if I had exactly the same amount of knowledge as you do when it comes to book learning, I could never match your level of experience in the field today. If we were to do the same inspection side by side, you could without a doubt teach me a good few things that I would not find in any book and that you learned from experience over the years going through houses and condos. I'm not going to kid myself and assume that if you never had a complain over the past 37 years then there is a 100% chance that I won't either in the next 37 which is why I'm trying to protect myself and my business.
Thanks for all your advices. Very much appreciated!

[Joe Funderburk, CMI]

Originally Posted by fcarrio

Patrick,
I have been in this industry since 1972 and I have never carried Errors and Omissions Insurance.

37 years x $5,000 = $185,000 saved.

[James H. Bushart]

Originally Posted by fcarrio

Patrick,
I have been in this industry since 1972 and I have never carried Errors and Omissions Insurance.
I should also add that I have never had a complaint filed against me.

One thing that I would never do without and I would strongly advise you to have is "liability insurance".

I would advise you to check with your insurance carrier to see if you already have this insurance. If you are a home owner and/or paying a mortgage, or if you own a car you might already have this type of coverage.

The absolute best "Protection" that you can have it is a good strong educational background in this field. One thing I would advise you to do is to take the "NACHI examination" over and over and over again until you're consistently scoring in the high 90s.


As a member of NACHI you have an extensive amount of "free" education available to you and I would strongly advise that you take advantage of all the benefits offered to our membership.

• In this industry there's no such thing as "too much knowledge"!
• I also advise you to contact Joe Farsetta about the services.

Good luck!

Good advice.

[Joe Farsetta]

Some things may or may not be covered by your E&O. For instance, WDI inspections, mold inspections, radon... You can use the services of an arbitration or mediation service wherever gaps in coverage exist.

http://www.nachi.org/forum/f2/intern...28/#post536834