Thread: ...failure of a home inspection company to provide timely notice to its insurer ...

The Superior Court of New Jersey, Appellate Division, has affirmed summary judgment for an insurer, holding that the failure of a home inspection company to provide timely notice to its insurer of a claim letter barred coverage for a subsequent related lawsuit filed in the following policy period. Alpine Home Inspections, LLC v. Underwriters at Lloyd’s London, 2008 WL 4963518 (N.J. Super. Ct. App. Div. Oct. 21, 2008) (per curiam). In so holding, the court rejected the home inspection company’s argument that the plaintiff’s later assertion of increased damages constituted a new “claim” for which notice was timely.

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http://www.wileyrein.com/publication.cfm?publication_id=14077

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Failure to identify termites? This is evidently done by someone who I'd bet does not properly fill out a WDI report.

Even if the termites was hidden, not visible ori naccessible, if you don't fill out your report correct your going to have to pay the piper. Most of these HI companies that get themselves into this kind of trouble is simply because they don't follow up with the client on the complaint.

How much would it have cost the HI company to send out a termite company and treat the termites and make these folks happy? Probably not near what their legal fees are costing them and their reputation.

rick

They should have sent info to the insurance co. the day they got the notice... thing aways go south.

In Calif. an HI need not say anything about termites as to do so would get the HI in court with the state of Calif. Structural Pest Control Board.

Only if he see some damage and then he can not call it termite damage.

Only a Branch # 3 Termite/building Inspector can do the ID.

Don't Most states have a Licensed for Termite inspection?

Best

Ron

The E & O coverage I have requires that the insurer be informed on "a timely basis" of any pending claims or coverage will be denied.

There is a "HUGE" lesson here. When a client complains RESPOND,RESPOND and RESPOND. A little nice "I am sorry" goes a long way.

It sure beats all of the time lost and the deductible payment, as well as your company's name on the public litigation listing.

Ron,

Its about the same here in Texas. If not licensed to do PC or Termite work, an HI can only use terms such as "suspected wood destroying insects or damage observed".

Then defer out for a Pest Control company to determine insect and if active is found.

rick

Originally Posted by JORY LANNES

A little nice "I am sorry" goes a long way.

Sorry? I thought that word went out of favor. When was the last time a cashier said "Thank you for coming in"? People generally don't seem to bother with that kind of stuff anymore. Those that do stand out.

Originally Posted by Eric Barker

Sorry? I thought that word went out of favor. When was the last time a cashier said "Thank you for coming in"? People generally don't seem to bother with that kind of stuff anymore. Those that do stand out.

Why thank you Eric. See, now I stand out as well