Thread: Claims against Home Inspectors

Does your E & O insurance company warn you about the risky areas of claims?
Here is a 2004 CMHC investigating report for your reference. This is an 5-year old report and mainly for East Canada. However, it is still a good reference to remind us.

How risky of the industry? Developer, builder, designer, supplier, manufacturer, owner, realtor, ... everyone has no liability for a defected house if they say they don't know, but inspector pay for the repair if we miss it. We are playing hide and seek everyday!

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The inspector controls their own risk. If they do a poor job at inspecting and then communicating their findings, then they are at a higher risk over a person that does a good job at both.

Originally Posted by Daniel Leung

Does your E & O insurance company warn you about the risky areas of claims?
Here is a 2004 CMHC investigating report for your reference. This is an 5-year old report and mainly for East Canada. However, it is still a good reference to remind us.

How risky of the industry? Developer, builder, designer, supplier, manufacturer, owner, realtor, ... everyone has no liability for a defected house if they say they don't know, but inspector pay for the repair if we miss it. We are playing hide and seek everyday!

That's an interesting article.... thanks for posting it.

It goes along with others I've seen about statistics relating to claims against HIs. I always find it interesting where the claims are concentrated in realtion to which disiplines are the most researched. For example Structural and water penetration cover about 75% of the claims yet the 'Electrical' forum on any HI message board has 5X the traffic of any other section.

There's nothing that will get you in trouble faster than water and bugs. I'm sure everyone's impressed when you know how many millimeters a ground rod must be buried on the thrid of seven outbuildings. But, they're even more impressed and won't sue you when you find the rot and insect damage in those buildings.

Sorry for the rant.... in answer to your initial question. You don't know enough builders, realtors or designers if you think they have no liability. They get sued as often and for as much or more than we do. At least in my neck of the woods they do. There is no such thing as 'no liability' unless you're a librarian.