Thread: use E&O or try to work it out?

Which insurance offers the best rates?

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If you read your insurance policy, it likely states that you have to notify them immediately of possible claims. You've already waited too long, and you've offered a settlement without their aid or knowledge. They could cancel you without covering the action, if you fail to perfrom your duties as outlined.

Gather all the pertinent paperwork, copy of reports, letters, photos, etc and contact your agent or claims rep.

And then delete this thread before someone finds it.

Dom.

The one thing you say that I don't agree with is that fungal presence is typical in a 40 year old house. Fungal/mold growth is a symptom of a moisture issue and is not ideal in a 40 year old house or a 4 day old house. Age is not the issue. Moisture is the issue.

The only thing I can say is that if you're going to report on items you say are excluded from the inspection, you need to report on them with verbiage that covers your butt.

Time to put it in the hands of your E&O provider.

Originally Posted by Dom D'Agostino

If you read your insurance policy, it likely states that you have to notify them immediately of possible claims. You've already waited too long, and you've offered a settlement without their aid or knowledge. They could cancel you without covering the action, if you fail to perfrom your duties as outlined.

Gather all the pertinent paperwork, copy of reports, letters, photos, etc and contact your agent or claims rep.

And then delete this thread before someone finds it.

Dom.

It doesn't sound like that yet from what he describes. He said he offered to settle and then said the client lawyered up.

Contact your E&O provider either way.

You may be right, but I believe that any offer, settlement or "action" needs to be done with full disclosure to the E&O carrier beforehand, unless they state otherwise.

But at any rate, its about to get ugly, no matter what.

Most Carriers have a codicil in their policy that states, (paraphrasing) if you attempt to settle a claim (which is most likely any written demand for money) on your own, you are on your own. This includes, buying the report back, double your fees back warranty or in the event of a larger matter, a larger sum of money.

You have to report ANY demand for money no matter how small or large it is. If you do not, the carrier has the right to not cover you for that matter.

Read your policy. Understand what a "Claim" Means in your policy. Talk with your agent/broker/carrier....

If you are still unsure about what a "claim" means in your policy, send it to me and I will be happy to read over the policy and show you what your carrier means about a "claim" and what your responsibilities are...

Insurance experts are here to help you... let us do that.

In States that require E&O, many Home Buyers believe that E&O insurance is a policy for their benefit leading to many frivolous type claims.

Insurance Companies have contributed to that notion by, in many cases, attempting to become involved in interaction with a client (creating false hopes) when a "Notification Only" is made.

Joe,

You can notify the carrier and they (the insurance carrier) does not necessarily get involved with your client. If you make the carrier aware of what you are doing and if you want to make a payment yourself and they approve it (and there is no reason why they should not), you are protecting and retaining your rights under the policy in case it blows up later. Going it on your own can negate your coverage. Proper notification and management with the claims people can help you a lot and minimize your headaches. We do this everyday, most inspectors might do this once in a while... Just my 2 cents.