Home Inspection Lawsuit

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Latest post 05-08-2007 4:23 PM by daco. 7 replies.
  • 05-02-2007 7:18 PM

    • Lamb53
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    • Joined on 05-02-2007
    • Posts 8

    Question [=?] Home Inspection Lawsuit

    My husband owns a Home Inspection business and inspected a two family home for a client in January. The client claims that when he moved in the heat was not working on the 2nd floor and he got a plumber and paid about $800 to fix the furnace. My husband's forms states that his inspections are visual only. This client is suing my husband in small claims court for $2500.00. Unfortunately, my husband does not have a copy of this inspection. He does not know what he wrote down for Heat on the inspection form. Are we a sinking ship?
  • 05-02-2007 8:14 PM In reply to

    re: Home Inspection Lawsuit

    "Unfortunately, my husband does not have a copy of this inspection."

    Yeah, but I can't imagine how plaintiff goes about proving he messed up without producing it.

    "He does not know what he wrote down for Heat on the inspection form. Are we a sinking ship?"

    Can't know from here, but I highly doubt it. (Not sure why plaintiff is suing for $2500 in the first place.) Let's say he put down a recommendation that a HVAC professional look at it -- he's covered. If it had no apparent defect, he's almost certainly covered there to. Unless it *looked* bad and he didn't put something indicate it's status was questionable, he should be okay.

    Still, it's a good reason to get better on the documentation/recordkeeping angle. I trust he also takes digital pictures of every inspection.

    If he doesn't belong to ASHI or NAHI, he should look into that. They should be very helpful professional associations of which to be a member.

  • 05-02-2007 10:01 PM In reply to

    re: Home Inspection Lawsuit

    Let's see:

    Your husband doesn't keep copies of his inspections.

    And he doesn't have professional liability (errors and omissions) insurance which would provide him free legal assistance and pay the plaintiff if your husband was liable.

    What happens next time when it's a 50,000 or 100,000 lawsuit and it's your husband's mistake?

    The ship may not sink this time, but there's an iceberg up ahead somewhere.
    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-03-2007 10:13 AM In reply to

    re: Home Inspection Lawsuit

    We can't possibly know.

    I certainly hope that not having a copy of the form is an anomaly rather than a regular business practice.

    He'll find out what he wrote on the form when he gets to court. Nevertheless, he can bring a copy of the form he customarily uses and should be able to get that into evidence.
  • 05-03-2007 11:33 AM In reply to

    • Lamb53
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    • Joined on 05-02-2007
    • Posts 8

    re: Home Inspection Lawsuit

    He doesn't have errors and omissions because we are a one person company and it costs $7,000 a year. His not keeping a copy was an error. He usually always has a copy. It figures it was one of the few inspections that he does not have a copy for. He doesn't remember what he put on the form regarding "heat". He may not have written anything down at all.
  • 05-03-2007 2:09 PM In reply to

    re: Home Inspection Lawsuit

    "He doesn't have errors and omissions because we are a one person company and it costs $7,000 a year."

    Huh?

    Where on earth did you get that from?

    Did your husband ever get a written quotation from an insurance agent? More than one insurance agent? Check on line for coverage and prices? Explore a variety of deductibles and limits? Join a national association to take advantage of lower group liability insurance rates?

    Here's the results of a google search that appears to indicate that the cost of coverage could be a lot less than half of 7000.

    http://www.google.com/search?q=home+inspection+errors+and+omissions+insurance+cost&hl=en&start=0&sa=N

    And if he loses this case, that 2500 could have gone a long way toward paying for insurance.
    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-03-2007 4:03 PM In reply to

    re: Home Inspection Lawsuit

    "It figures it was one of the few inspections that he does not have a copy for."

    Murphy's law rears its ugly head once again. I don't know if your state's small claims court rules provide for pre-trial discovery, but, if they do, he can get a copy of the form in question that way. He could also simply ask the customer for a copy so that he can look into the situation and "make things right" if it's appropriate to do so.
  • 05-08-2007 4:23 PM In reply to

    • daco
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    • Joined on 05-08-2007
    • Posts 1

    re: Home Inspection Lawsuit

    I am in the process of opening a home inspection business in Tennessee. I won't claim to be an expert, but I do know that I mailed a check to an insurance company yesterday for a total of $4100.00 for E&O, general liability and a bond.
    Thank God the state of Tennessee requires E&O insurance before they will even issue a license to an inspector.

    Your husband really needs to learn something about the business that he is in, before you both get sued out of house and home.
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