Mandatory E&O in the crosshairs?

[Michael R. Boyett]

Is the Texas mandatory E&O requirement in the crosshairs of the current legislature? Keep on top of it at http://www.capcityinspections.com/blog/ .

[Nick Gromicko]

I hope they pull the trigger and kill it.

[mroach]

It would be nice.

[James E. Braun, CMI]

Ain't home inspection licensing great!

[Nick Gromicko]

http://www.yourhoustonnews.com/couri...3b7a092ee.html

[James H. Bushart]

Kudos to the inspector that spoke up....and shame on those who shrugged and walked away.

There is a very good reason why every home in Austin must have an energy audit before it can be sold....and home inspections are simply an option. Squeaky wheels get grease.

[Joseph A. Ferry]

If you don't have E & O, you definitely need this.

[Gary Farnsworth]

Real estate agents, repair persons of all types, mortgage brokers, bankers, anyone involved in any RE transaction should then have E&O. What's fair is fair. All for one, one for all.

[Joseph A. Ferry]

Most of them do have E & O.

[John Cahill]

The sections of the bill that require E&O have been struke out. It did not copy and paste.

82R2153 EES-D By: Nichols S.B. No. 379 A BILL TO BE ENTITLED AN ACT relating to the issuance and renewal of a real estate inspector license. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1102.114, Occupations Code, is amended to read as follows: Sec. 1102.114. ISSUANCE OF LICENSE. The commission shall issue the appropriate license to an applicant who: (1) meets the required qualifications; and (2) pays the fee required by Section 1102.352(a)[; and [(3) offers proof that the applicant carries liability insurance with a minimum limit of $100,000 per occurrence to protect the public against a violation of Subchapter G]. SECTION 2. Section 1102.203(a), Occupations Code, is amended to read as follows: (a) A person may renew an unexpired license by paying the required renewal fee to the commission before the expiration date of the license [and providing proof of liability insurance as required by Section 1102.114(3)]. SECTION 3. (a) The change in law made by this Act to Section 1102.114, Occupations Code, applies only to an application for a real estate inspector license submitted to the Texas Real Estate Commission on or after the effective date of this Act. An application for a license submitted before that date is governed by the law in effect on the date the application was submitted, and the former law is continued in effect for that purpose. (b) The change in law made by this Act to Section 1102.203, Occupations Code, applies only to the renewal of a license that expires on or after the effective date of this Act. A license that expires before that date is governed by the law in effect on the date the license expires, and the former law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2011.

[John McKenna]

E&O cost me $19 a week for me and my son.
No big deal. It is nice to have.

[Barry Adair]

Texas Gov. Rick Perry disagreed see attached memo

Whether you agree or disagree your voice should be heard by your Senator and Representative.

1. To find your State Senator please go to:
http://www.senate.state.tx.us/75r/senate/Members.htm

2 To find your State Representative please go to:
http://www.house.state.tx.us/members/welcome.php

Sample Letter to Your State Senator or House Representative on Mandatory E&O Issue. Edit as required to voice your stance.

The Honorable (full name)
{Insert Senator or Representatives Address Information Here}

Dear (Senator or Representative) {Insert Their Name Here};

I am a Texas Real Estate Commission (TREC) Licensed Inspector. I am also your constituent.

I am asking for your support in repealing of State Bill 914 section that requires Texas Real Estate Commission Inspectors to carry Professional Liability Insurance. I am also one of your consituents.

While I may not oppose the insurance coverage totally, I do oppose the coverage being made mandatory for our profession and request that this requirement be removed during this legislative session.

The required insurance for Inspectors has created compound issues for TREC Licensed Inspectors and Texas Consumers;
Scarcity...There are no Texas underwriters for these policies, although we do have Agents that will write these types of policies.
Availability...The required insurance coverage amount of $100,000.00 is not a common coverage amount and requires special underwriting.
Inadequate coverage for Consumers and Inspectors...The required insurance coverage doesn't cover new home construction phase inspections, swimming pools, spas, private water wells, septic systems and etc.
No available protection from a 3rd Party with frivolous suits... Coverage required for Inspectors does not cover liability from sellers, should they not be pleased with the findings on the inspection report and file legal proceeding against an Inspector who inspects their property for a potential buyer. This causes Inspector to be afraid to report their factual findings on the inspection reports for fear of being sued.
Consumers are losing on selection of Inspectors... Many Inspectors are dropping their Inspectors license and leaving the industry due to the costs for the mandatory insurance coverage. Approximately 39% decline in licensees over the last two years according to the Texas Real Estate Commission.
Insurance is not required of other State licensed professions...Inspectors are the only profession in the State of Texas with this mandatory insurance requirement placed upon them. This is unfair for the inspection industry.
Duplicity of consumer protection... A TREC Recovery fund already exists to protect consumers should an Inspector make a mistake during an inspection. Inspectors are required to contribute into this recovery fund.
Makes obtaining license more difficult...This Bill creates a financial hardship on new Inspectors coming into this industry by mandating them to have this insurance prior to a TREC Inspectors license being issued.
Cost of home inspections made more expensive... The financial burden placed upon Texas Inspectors for the mandatory Insurance is being passed on to Consumers, making it hard for Consumers to have inspections on the largest financial investment that they will usually make.•

Governor Perry agrees with improper establishment of this law... I can supply a copy of his memorandum of disagreement on the mandatory insurance requirement for Inspectors.

Please watch for this issue at upcoming legislative sessions or meetings and let me know if you received any information concerning this matter. Should I learn of additional information on this issue, I will share this with you.

Thank you for attending to this important issue.

Thanks, too, for all you do to serve the people of our great State. Please feel free to contact me should you have any questions.


Sincerely,


[Place Your Name and Full Street address and phone number. Email address is a plus, too.}

[James H. Bushart]

Bottom line on mandatory E&O is not its affordability...but the fact that an inspector is two or three frivilous claims away from being denied a license renewal.

[Joseph A. Ferry]

Originally Posted by jbushart

Bottom line on mandatory E&O is not its affordability...but the fact that an inspector is two or three frivilous claims away from being denied a license renewal.

Very true.

[Gary Farnsworth]

New inspectors cannot get E&O. I bet attorneys write these laws just so money gets put in their pockets. All laws are written only for the benefit of the people who write and pass them. It is sad that no lawmakers can be sued. Just think how straightened out this country would be if that came true.