Inspection Arbitration Services, only $90/year for InterNACHI members.

[Richard W. Washington]

Originally Posted by mboyett

Just to be clear...INACHI members pay $90/yr (for now) plus someone pays $300/complaint plus office expenses...right?

And to also further clarify. Office expenses includes

Additional fees my be applied for copying, shipping/mailing, conference calls, telephone calls, other legal fees, notifications and other related administrative services.

Guess that these costs would pale in comparsion to an E&O deductible of 5k.

[Billy Boerner]

Originally Posted by rwashington

And to also further clarify. Office expenses includes

Additional fees my be applied for copying, shipping/mailing, conference calls, telephone calls, other legal fees, notifications and other related administrative services.

Guess that these costs would pale in comparsion to an E&O deductible of 5k.

Again this is how I understand it. $90 a year then $300 if a claim is made. Richard do you carry E&O?

[Billy Boerner]

By the way it's a great service guys. I'm signing up as soon as I get back from IRAQ.

[Joe Farsetta]

Billy,

Its a FANTASTIC service. We have also been compiling documents and data which we will likel be assembling into a monthly newsletter for those who subscribe.

Let me tell you this... I just finished crafting an article on the heels of the analysis of a case, where the decision in favor of an inspector in lower court was later reversed on appeal. The reasone were eye openng, and affect all of us. I dissected the case and summarized why the courts did what they did. I'll also tell you that once you read it, you will review your inspection agreement and some business operations, for sure.

As far as the service is concerned... YES, it's $90 for NACHI members. Some rules of evidence will require hard copies, as will other legal dosuments, so the costs of mailings are, naturally not included. Same goes for copies. The complaning party pays the up-front costs which go to our neutrals.

Great service...

[Richard W. Washington]

Originally Posted by bboerner

Again this is how I understand it. $90 a year then $300 if a claim is made. Richard do you carry E&O?

Yes I do. TREC began requiring it in 08.

[Dennis McAuley]

Mr. Farsetta,
I like this idea. Is there language we can insert into our present agreement for this type of service?

My current agreement states:
1. The parties agree that the maximum liability for PRIORITY ONE HOME INSPECTIONS, LLC d/b/a Home Check America or its agent, arising from the failure to perform any of the obligations stated in this agreement, is limited to an amount NOT TO EXCEED THE FEE PAID FOR THE INSPECTION. Client waves any claim for consequential, exemplary, special or incidental damages or the loss of the use of the home/building even if the Client has been advised of possibility of such damages. The parties acknowledge that the liquidated damages are not intended as a penalty but are intended (i) to reflect the fact that actual damages may be difficult and impractical to ascertain; (ii) to allocate risk among the Inspector and Client; and (iii) to enable the Inspector to perform the inspection at the stated fee.

I really want to fortify the language with the addition of the arbitration service.

Thanks for your assistance.

[Joe Farsetta]

Dennis,

Be careful how much you put into that agreement. The language cant be oppressive or unconscionable. Also, is all one needed to do was put a limit of liability clause into an agreement to indemnify oneself... there would be no need for E&O insurance.

[Dennis McAuley]

Joe,
I agree. What I'm looking for is "new" language that I can incorporate the use of arbitration in the inspection agreement. Does the blending of the two arbitration services have such language? Not looking to re-invent the wheel, just make better use of it. Does INACHI have such language in their inspection agreement? If so, why not use it.

If current language, which my attorney wrote all of it, can be changed to incorporate the arbitration clause, I am all for it.

Thanks for your assistance.

[Joe Farsetta]

You can only compel someone to use the services of IAS if you are a subscriber.

Cant buy fire insurance after the house is on fire as they say. The reason we can keep the price so low ($350 to arbitrate) is based on the subscriber base. AAA charges $750 and higher to arbitrate... sometimes much higher.

Sample language is already on the IAS website (www.inspectionarbitrationservice.com)

[Dennis McAuley]

Thank you Joe for getting me that valuable information. It is what I wanted all along. I will evaluate and make my decision from all the information on the website and your experience.

[Joe Farsetta]

Dennis,

An example of the types of neutrals we employ include construction experts, contracting officers (contacts and contract law), inspectors, and attorneys who are also contracting specialists with construction experience.

Again, our specialty is focused solely on the inspection industry.