E&O Insurance

[kurt]

That's similar to my experience. I had a claim about 6 years ago; shakedown from a rich guy in the insurance biz that knew just how to shake folks down. I could go into specifics, but the short story is he sues folks for about what it would cost to settle. He got me, both realtors, the seller, and probably more that I don't know about. I could have gone for it & probably won, but would have spent a couple years & twice the amount of money. I settled.

BRP re-upped me w/no premium increase. I've always been treated fairly. It's the $5000 deductible that has me wired; it hurts. FREA has gone to the $1000 deductible; very attractive. The whole thing makes my stomach groan, but not having insurance would be worse.

[homnspector]

"The reason the Agent from ND gave me for the lower rate was because the State limits the liablity to one year just like the building contractors warranty."

"We have to sweat it for three years here, but builders only one. No sense in that."

Is this the state legislature that limits your liability? Who would you call to find out about this? I would think it would be very difficult to put a 1 year liability on a civil claim.

It is 2 years here for builders, but they regularly get sued well after that, particularly over things like mold.

[chrisprickett]

Originally posted by homnspector

"The reason the Agent from ND gave me for the lower rate was because the State limits the liablity to one year just like the building contractors warranty."

"We have to sweat it for three years here, but builders only one. No sense in that."

Is this the state legislature that limits your liability? Who would you call to find out about this? I would think it would be very difficult to put a 1 year liability on a civil claim.

It is 2 years here for builders, but they regularly get sued well after that, particularly over things like mold.

Just a point of clarification on AZ construction law. The Registrar of Contractors will only advocate for a new home buyer (or anyone who hires a licensed contractor) for two years. The structual warranty is eight years.

Contrary to what builders would like you to think, you can't build a home that will last only 2 years in AZ.

[hausdok]

Hi,

By law, the mandatory warranty is six years here in Washington State for "habitability" issues, although most builders only have a one year warranty and never mention it. As for how long customers can come after me? I don't think there really is any limitation. Anyone can try to sue you for anything at any time. Just defending yourself against an attempt can cost you as much as a loss in court.

That said, the binding arbitration clause in my pre-inspection agreement limits the customer to 1 year within which to inform me of any issues and to enter into arbitration. Here's how it goes:

DISPUTE RESOLUTION AND REMEDY LIMITATIONS

Notice Requirement - In the event that You have any dispute relating to this agreement, the inspection service, the report, or Your claim that there was an error or omission in the performance of the inspection service or writing of the report, You agree upon obtaining knowledge, to promptly notify Us in writing of the dispute or claim in order to provide Us a reasonable opportunity to respond In addition, if We determine that You have a legitimate dispute or claim, You will provide Us the opportunity to resolve the issue. Please understand that an unreasonable delay in affording Us with a notice of a dispute, claim or issue may prevent Us from remedying any valid dispute You might have.

Binding Arbitration - The undersigned parties below agree that any dispute between the parties, except those for non-payment of fees, that in any way, directly or indirectly, arising out of, connected with, or relating to the interpretation of this Agreement, the inspection service provided, the report or any other matter involving the service, shall be submitted to binding arbitration under the construction industry rules of the American Arbitration Association, except for the procedure for selecting the arbitrator. The parties shall mutually appoint an arbitrator who is knowledgeable and familiar with the home inspection profession. The arbitration decision shall be binding on all parties, and judgment upon the award rendered may be entered into any court having jurisdiction. Reasonable attorney's fees and costs shall be awarded to the prevailing party in any dispute arising under the terms and conditions of this Agreement and the parties agree that the arbitrator shall be entitled to grant such award. In addition to reasonable attorney's fees, we well be entitled to payment for any time, effort, energy or expenses necessary to defend the action. If no arbitration is initiated by either of the parties to this agreement within one year of the date of the report, the failure to initiate the arbitration proceedings will be considered conclusive evidence that the parties are satisfied that each has properly and completely performed their obligations under this agreement. This provision applies to all disputes, contract or tort, that would not have arisen but for the contract and resulting relationship between the parties and that the parties by this provision waive their rights to a jury trial on all such contract or tort disputes.

There's a whole lot more to the agreement than just these few paragraphs, of course. It was originally the pre-inspection I used when with the franchise. I had my attorney modify it slightly to limit remedy to either accepting a refund or going to arbitration - no court - and it must be within one year.

I like to think that the reason that I've never been through this process or to arbitration is because Yung and I are extremely anal in our approach to an inspection and don't leave much room for doubt. However, I'm not naive' enough to think I never make mistakes, so I have to assume that this document might be part of the reason that in nearly 9-1/2 years I've never had to sit down at an arbitration table.

ONE TEAM - ONE FIGHT!!!

Mike

[Scottpat]

In Mississippi builders are required by law to issue a 1 year warranty on the entire home and 6 years on the structure including the foundation. The HI law states that any action against a HI must be done within 3 years from the date of the inspection, but we are not liable for latent defects.