Read this Message online: www.workingre.com/workingre/Dont-inspect-for-pests-sued-anyway-page.html
Don't Inspect for Pests - Sued Anyway?
By Isaac Peck, Assistant Editor
if your inspection specifically excludes wood destroying
insects/organisms (WDI/WDO), that does not stop an irate homeowner from
suing if a problem arises. That’s why it is good to have a clear scope
of work, a signed inspection agreement and a broad errors and omissions
insurance policy- just in case.
“We see new homeowners move in and begin a remodel only to find termite damage that was hidden behind a wall, so it was unseen and unreported by the inspector,” said Brauner. “Their first instinct is to try to recover some of the expense from the home inspector. The inspector responds with their scope of work and agreement, signed by both parties, which specifically excludes WDI/WDO or pest inspections and is limited to what is visible. That’s great but if that does not stop the homeowner there, the inspector may have to be prepared to prove his case in court and it may be without the help of his insurance carrier if he did not purchase that specific coverage.”
says that OREP’s E&O base policy provides what is known as “incidental”
coverage for pests and other services- for when a problem like this arises.
“That’s why a broad policy form is so important,” said Brauner. Brauner
recommends asking your agent when you’re shopping insurance about what is
and isn’t covered in the base policy- whether you specifically inspect for
it or not.
Here is a real rebuttal letter
prepared by the claims department representing an OREP insured:
ATTENTION: You are receiving WRE Online News because you opted in at WorkingRE.com or purchased E&O insurance from OREP. WRE Online News Edition provides news-oriented content twice a month. The content for WRE Special Offer Editions is provided by paid sponsors. If you no longer wish to receive these emails from Working RE, please use the link found at the bottom of this newsletter to be removed from our mailing list.