Does anybod use OREP for their E&O insurance and General Liability??
There rates are substanitally lower than that of FREA for claims made policy which I and I know many of you use for E&O.
I spend about $3900 for E&O and GL - $1million coverage through FREA. OREP I beleive is around half that for $1million claims made E&O policy.
Again, do any of you use OREP?? Have you switched over from FREA or any other company??? What do you pay for $1MILLION coverage??? Opinions on this subject???

I would sure love to save some $$$ on my insurance as I know all of you would.

THanks

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SOLID FOUNDATION
San Diego Home Inspection

Martin - Maybe I'm missing something, but at Home Inspectors Insurance Home Inspector Insurance I see $ 3,300 for $ 1 million coverage, which is essentially the same as FREA, if not more. FREA's deductible is $ 1,000. I don't see OREP's.

Martin,

What kind of homes are you inspecting? In my area most upper end homes are in the 250,000-400,000 range.

Even on a home that is selling for over $1M, it would take a HUGE error on your part to equal a $1M repair. Remember that the more insurance you have, the more that you will be sued for when problems arise.

I have 250,000/250,000 through Capital Special Risks and it costs me $2358/year. Additional inspectors fur multi-inspector firms can be added for around 1,000/year instead of the full fee. This includes 250,000 GL, radon and WDO coverage. They have higher coverages and less coverages, but this is what suits my needs tighr now.

Note: Although I do have the E&O, I try not to tell the clients/realtors. The more that they know, the more likely you will be sued.

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Integrity Inspection Service, LLC
www.irsindy.com
(317) 345-1828

Jon R,

Remember your limits typically cover the cost for Defense as well. You don't have to be inspecting $500,000 houses to carry $500,000 in limits. Most claims never come close to policy limits in size, but when they do hit, and they do, you'll be glad that you carried more than the minimum.

at $400 an hour a lawyer can eat your limits pretty fast.

Kevin is correct, the majority of your E&O will be consumed by defense costs, not so much settlement damages.

OREP's premiums are not that much less than FREA's, keep in mind the taxes and other fees that will be added to your cost. Not too mention that FREA has a $1,000 deductible. Further, OREP is a Lloyd's policy, not "Admitted." And not even US based.

We JUST rolled out a new program for our tail policy. As many know, we offer a Claims Made policy and I'm sure you know what that means: the policy has to be in force at the time the claim is made. Once you terminate it, you lose coverage for all inspections unless you purchase a tail. Previously, we offered a tail policy for 75% of the last years membership fees. For one year. We are now offereing 4 years tail coverage for the same 75%. Incidentally, you can get a 1 year tail for 35% of the premium. This is HUGE!

David,

Given the recent postings on other BB's regarding disparaging remarks by your competition, I will give your company close consideration when E&O becomes mandatory (which it looks like it will).

Thanks, for posting with your information... It certainly appears the ability to cover all inspectors in the firm is a big feather in your hat. This will allow some of the new guys to stay in business by going to work for some of the more established companies that can afford E&O.

I for one would welcome the additions.

Richard

__________________
"If con is the opposite of pro, is Congress the opposite of progress?"
Richard Rushing, HCRI
Duncanville, Tx.

Forgive me if you think I am knocking OREP. I’m not trying to. I’m just being informative. OREP offers retro to newcomers just as FREA does free of charge. FREA also has no hidden surplus lines fees. As far as our carrier goes, AIG is actually the largest carrier in the world. Lloyds is not even a carrier. They are a collection of syndicated underwriters. When you get out of the business you will have to pay 75% of your previous years premium for only one year of coverage with OREP I believe. FREA offers you 4 years for the same price. Also, FREA doesn’t drop members after one claim. We remain very loyal to our members. Just be careful about who you go with. Read the small print.

I think that you can't go wrong with E&O if you use any of the following. I might agree with their internal workings, but it boils down to marketing and selling more coverage.

BRP.... Business Risk Partners ....... Lloyds
Allen Insuranc e........... Lloyds
Target ...... Lloyds I think
Lexington .......... AIG
State Farm Insuranc e (not all locations) State Farm
FREA ......... AIG
OREP .......... AIG ?

Also check with local insurance agents. You might be surprised at what they can do for you.

As for tail coverage when you close up shop, IMO you don't need it. In the EW work that I have been doing for the past eight years I have yet to see a home inspector named in a lawsuit after they have closed their doors. Can it happen, yes it can but it is just not very likely. If you ask for stats on claims, you will never see them. For some reason they just can't provide them.

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Scott Patterson
Spring Hill, TN
http://www.traceinspections.com

FREA -- AIG
Allen -- Liberty for their Occurrence. Lexington (AIG) for their Claims Made
Target -- LLoyds (I believe)
BRP -- Lloyds (I believe)
OREP -- Lloyds

Ben... Is it still true, if an inspector pays Gromicko 375.00 to become a CMI by simply claiming he met Gromickos non verified CMI requirements, the $1000 deductible is waved?

Dan, Shirley you gest...

Rich

__________________
"If con is the opposite of pro, is Congress the opposite of progress?"
Richard Rushing, HCRI
Duncanville, Tx.

That is one of the reasons that many experienced inspectors are now shopping around for a new E&O provider.

__________________
Scott Patterson
Spring Hill, TN
http://www.traceinspections.com

I guess no good deed goes unpunished, huh?

Yes, there is a ZERO deductible for those who obtain the CMI designation. The major criteria for obtaining the designation is at least 1000 inspections and/or 1000 CE hours. Or a combinanation of both. So it's not as if you cut a check to Nick and all of a sudden you're a CMI. In fact, the CMI program is non-denomonational, open to anyone. Not specific to NACHI in any way, shape, or form.

I believe that Nick even turned the program over to Scott Emerson in Texas.

Interesting... So the fact still remains.. An experienced inspector that exceeds, and can provide documenation, the 1000, CE or inspection qualificiations still must pay, somebody 375.00, in addition to your E&O policy fees, for this prestigious/ marketing tool [ Per Nick], to qualify for this good deed provided by your company?

Ben - I just renewed with FREA. If this CMI/no deductible deal is open to anyone, why didn't I see anything about it in my renewal package?

Quote from Ben: "Yes, there is a ZERO deductible for those who obtain the CMI designation. The major criteria for obtaining the designation is at least 1000 inspections and/or 1000 CE hours. Or a combinanation of both."
___________________

How the hell can that be where a company would offer zero deductable to someone who MAY have only conducted 10 inspections (or zero) and still qualify by attending classes for 990 or 1000 CE hrs.--- that's just a goofy policy. There should be a hard and fast number (say 1000), plus a mandatory number of CE hrs to go along with that.

Why does FREA not offer this discount direct to folks who can prove the same qualifications without paying someone $375.00 to join their club. That just smells bad. Looks bad. Is bad.

Rich

__________________
"If con is the opposite of pro, is Congress the opposite of progress?"
Richard Rushing, HCRI
Duncanville, Tx.

Ins cos are businesses and this is a marketing tool that works or they wouldn't use it.

I wish I had the ability to transfer your anger and apparent energy from this non issue onto helping the public understand how badly we have been screwed by one self serving representative and that the whole concept of E7O is misrepresented to the consumer. Oh well, I'm charisma challenged. No-body's perfect.

__________________
The only reason some people get lost in thought is because it's unfamiliar territory.
- Paul Fix

Why does FREA not offer this discount direct to folks who can prove the same qualifications without paying someone $375.00 to join their club. That just smells bad. Looks bad. Is bad.

Where's Jerry P when we need him ?

The very last thing I want is to be in a pool with a group of people who feel the need to market their services with that deceptive CMI scam.

With 20+ years construction experience, 10+ years inspection experience, and thousands of inspections without a significant complaint, I need to stay far away from people who pretend to be experienced inspectors, and the companies that do business with them. I encourage all experienced inspectors to do likewise.

RT

"Good deed"?

A "good deed" would be to recognize all experienced inspectors who have been: 1) in the business 5 years or longer, AND, 2) 200 CEU hours - that's 40 per year for that 5 years - that's twice what most associations require, AND, 3) are duly licensed where required to be licensed.

That's three very good *AND* points to use for that ZERO DEDUCTIBLE - forget and special fake or fraudulent certification which may be obtained for a few bucks.

Ben, as Thom stated, you represent a business, why not admit that this is a marketing ploy and that it has (apparently, you are still defending it) worked very well.

I would not be surprised to find out that Nick bought FREA, Nick is, after all, excellent at marketing.

He tried to buy me into having a 'Ask Jerry' section on the NAXHI forum. He compared the NAXHI forum and inspectionnews.com as being 'one's a high school play and one is a prime time show'. I thanked him for offering me the part in the high school play (with pay, whatever that meant), then said I'd rather stay a volunteer with the prime time show.

Ummmm ... maybe I should reconsider" Maybe Nick will buy me one of those $1.3 mil Prevost motor homes? Heck, I'll even let him paint 'NAXHI's ASK JERRY mobile continuing education program' on the back of it. That way, he gets to write it off as a "business expense".

Dang, I should have thought of that week before last when I replied to him. Oh well, guess that chance is gone now.

Hey Nick ... if you put one of those in my driveway, we can start talks on what is on your mind!

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Jerry Peck, Construction / Litigation Consultant
Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )