Go Back   InterNACHI Inspection Forum > >


Texas/TPREIA Home Inspectors This is a place for Texas InterNACHI inspectors to discuss Texas home inspection topics. Become a home inspector in Texas

Thread Tools
Old 11/22/17, 1:08 PM
John Cahill, TREC 855 John Cahill, TREC 855 is offline
Certified Professional Inspector (CPI)
Join Date: Dec 2004
Location: Plano, TX
Posts: 1,077
Default TREC inspector insurance may change

TREC staff is trying to prevent the cost of defense from being included in the $100,000 insurance requirement. They say it is required by statute however it is staff who interprets the specifics of the statute. One idea is to require more insurance (300K for example). The inspector committee will discuss this again in early January 2018. The Commissioners will evaluate it again in February 2018.

The November 2017 TREC meeting video was edited to show this topic. It is at this link.


Note: The intent of the TREC Statute is interpreted by TREC staff to require the inspector be financially responsible for anything they miss that is required by the Standards of Practice. Here are a few questions that come to mind. What do you think? Send your reply to trecinspectionlaw@gmail.com.

  1. The inspector (you) will pay for anything missed up to $100,000 in exchange for a $300 dollar fee and a 4-hour inspection using the TREC Standards as a requirement document? (numbers approximate).
  2. What would you charge to offer a $100,000 Standards of Practice guarantee? Post edit. Someone asked for clarification on this. What would you charge if page 1 of the inspection report said, "The home inspector is required by Texas law to be financially responsible for any error or omission regarding the TREC Standards of Practice? The intent of statute prevents the inspector from reducing their liability to less than $100,000. The public has the right to file a complaint against an inspector at TREC and to also pursue financial damage relief through the inspector's mandatory professional insurance policy."

  3. How much do the real estate agents make on a $300,000 sale? Not to criticise agents but is compensation fair for inspectors regarding risk and reward?
  4. How long would your guarantee be in place? 1, 2, 4 or more years?
  5. How long would your inspection take?
  6. Do agents and sellers start getting impatient if the inspection is longer than 6 hours?
  7. Who decides your innocence or error? The insurance company, TREC, the civil justice system or a combination thereof?

I'll send a survey on these questions. Feel free to provide input. Many more questions coming.

John Cahill
Circulate freely

Last edited by jcahill; 11/22/17 at 11:45 PM..
Reply With Quote
Old 11/22/17, 4:52 PM
Chuck Evans's Avatar
Chuck Evans Chuck Evans is offline
Certified Master Inspector ®
Join Date: Sep 2006
Location: Stagecoach, TX
Posts: 10,167
Default Re: TREC inspector insurance may change

I remember TREC fining an inspector for performing a negligent and incompetent inspection on a roof that didn't even exist at the time he inspected the house. TREC has an inherent conflict of interest in adjudicating such matters, considering TREC's revenue comes from the very fees and fines that it levies against licensees.

Chuck Evans (TREC #7657)
Level III Infraspection Institute Certified Infrared Thermographer (#8402)
HomeCert Houston Home Inspections & Thermal Inspections Find us on Facebook
The Woodlands Home Inspection

Houston, TX
Awards Committee Member


The InterNACHI Awards Committee is the final authority of issuance of any award the committee offers.
Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 8:43 PM.
no new posts