Texas E&O Requirement Position Statement

[Woodrow C. McDougald]

Being a relative newcomer in this discussion, I hope not to offend anyone.

With that said, I feel trying to limit competition by way of financial burden is really counterproductive to the benefit of the organization. We've all seen children given businesses, or money enough to buy their way into something, and then watched as they fail due to lack of skill. Usually, some of the collateral damage is a loss of overall respect by the general public for the profession involved because of said incompetence.

Conversely, we've all seen individuals excluded from an endeavor they were suited for due to lack of funds. Again the profession suffers, but this time from lost opportunity through having a good competent member excluded.

I'm damned proud of the 40+ years I've spent in the construction industry. I've served in nearly every imaginable position, from laborer to foreman to superintendent to estimator to Contractor. I've been on both sides of inspections countless times. The most dismaying times were not when something was wrong with the project, but when the inspector was inadequately trained or lacked the skills to prosecute the inspection correctly.

Far better to raise our required level of expertise than to incur needless expense as a means of limiting our competition. If you want to keep the "burger flippers" out of the business, then raise the knowledge and skill requirements to do so.

E&O Ins is just a band-aid placed on an owie that probably shouldn't have happened to begin with. Fewer claims due to a better skilled membership should result in reduced premiums and eventually no insurance needed at all.

But the real benefit is the increased level of respect from colleagues and the general public.

[Michael R. Boyett]

Due to a perceived lack of consensus and, more importantly, a lack of approval from iNACHI HQ, then this E&O Position Statement will be mothballed and not shared with anyone outside of iNACHI at this time.

[Chuck Evans]

Sorry to hear. I was not picking up on any lack of support for the position.

Thank you, just the same.

[Woodrow C. McDougald]

I think you're onto something really beneficial here, Mike. Hate to see you drop it. I'll support you all the way on this issue.

[Michael R. Boyett]

Originally Posted by cevans

I was not picking up on any lack of support for the position.

Me neither from the msg board but I've had some private e-mails and several verbal discussions with other iNACHI inspectors that don't frequent the board. Seems like maybe 10-20% like the E&O requirement for it's apparent competition limiting abilities. Depending upon what transpires at the TREC Summit at TAMU next week then I may bring the position statement back up front but let's wait and see how that pans out.

[George E. Russell]

Seems like maybe 10-20% like the E&O requirement for it's apparent competition limiting abilities.
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Talk about Hen House Ways....
G

[Michael R. Boyett]

Talk about Hen House Ways....G

Not sure I get your meaning. What-chu talking 'bout?

[Michael R. Boyett]

In preparation for next week's TREC Inspector Summit I would like to know what you think are the top 3 issues we face as inspectors in Texas. Here's my take so far....

TREC Summit Top Issues.pdf

[Michael R. Boyett]

Not all at once now guys...ease up a little

[Chuck Evans]

I haven't seen much regarding unlicensed inspectors. Is that much of an issue in some markets? Maybe this market is just too big for me to notice... As a corollary, it would be good for TREC to clarify what is a home inspection vs. non-HI / non-TREC governed inspectors (e.g., stucco specialist, pool specialist, HVAC specialist, Well/septic inspector, etc.) who also get involved in Real Estate inspections and are not subject to TREC regulation (perhaps they should only be brought in if there is also a TREC inspector also performing an inspection). Would like to see TREC spell out what liability the HI has for specialist inspectors when they are brought in, particularly for errors and omissions by these people when they are/are not coordinated by the HI. Particularly considering that the HI receives no compensation for bringing them in.

Curious as to TREC's opinion regarding liability for conduct of the client and client's entourage when in attendance at the inspection. Fewer and fewer agents take the time to be present during the inspection and the inspector cannot reasonably "supervise" the client and people that the client may bring to the inspection and conduct a competent inspection at the same time.

I agree, raise, don't lower the testing standard for Professional inspectors. I would like to see them do away with the requirement to have E&O for apprentice inspectors. The apprentice must work under direct supervision of the inspector anyway. The Inspector's E&O already protects the client.

Simplify and streamline the SOP. Do not let the commentary become a separate enforceable document. It will simply make it more difficult for inspectors to avoid being sued (do some of the committee members have a conflict of interest, drafting an overly complicated SOP on one hand and testifying against inspectors as expert witnesses on the other?)

I would like to see TREC be more proactive in enforcing this "Each inspector licensee must also uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession." provision. I'm tired of seeing all of the "Is your inspector blind" and all of the other negative crap on inspector websites, in advertising, etc. which only harms our collective reputation. TREC should be especially aggressive in going after the ones that claim inspectors with numbers greater than xxxx are inexperienced and inferior, blah, blah blah. These claims are basically stating that TREC is licensing people who are incompetent to perform inspections. TREC could put an end to this damaging practice by fining a couple of the worst offenders. You don't see Reeltors pulling this crap against their own.

Would like to see agents and brokers subject to the same prohibition from giving or soliciting fees or other forms of compensation or consideration of any type (including: purchasing advertising; sponsoring meals, events; donations; etc.) for referrals, inclusion on preferred lists, etc.

[Michael R. Boyett]

Thanks Chuck....good inputs. I'll take them with me to College Station tomorrow. Unlicensed activity has been identified in the DFW area and I know of one instance in the Temple area. How bad it is, I'm not sure, but that's kind of my point with that bullet. Someone, i.e. TREC, needs to determine if there is a widespread issue. Even if it's not widespread there needs to be a way to report & address instances when noticed.