E+O Insurance Tips to Prevent Home Inspection Lawsuits

Because home inspectors run the risk of being named in a law suit each time they look at a property, E+O insurance providers help protect home inspectors from lawsuits on the off chance they are sued.  This is the primary reason that inspectors are advised to maintain an E & O insurance plan. Here are some suggestions to help inspectors be proactive in their business and avoid lawsuits.

Photographs
Inspectors are taught to describe all conditions thoroughly and accurately.  However, we all know that a picture can do a much better job of pointing out a flaw. Taking lots of pictures, from different angles and with different lighting effects, will show a condition clearly and easily.

Consistency
One of the best ways for inspectors to avoid using their error omission insurance is by using the same terminology and descriptions each time they complete a report.  A leaky roof on a report completed on Wednesday should not be a roof with lots of holes and signs of leaks on a report completed on Friday.  Working in a consistent manner will help prevent these types of problems.

Signatures and Dates on Agreements
Home inspectors should never turn in a report without the date and signature of the property owner.  This proves that the owner was aware of your findings and proves that they had at least minimal knowledge of any problem.

Provide an Opinion
It is important to understand that as a home inspector you are being asked for your opinion of a property's condition.  Instead of proclaiming that an air conditioner is working correctly, for example, you should state that in your opinion the air conditioner is performing its function as it was intended on the date of the inspection.  This gives your e & o insurance provider leeway in explaining that you could not be held accountable for a problem that occurred past the date of the inspection.

Review the Findings
It is wise to sit down with the property owner and tell them about any issues you may have discovered during your inspection.  Most error omission insurance agents have stated that people are less likely to file a lawsuit if they feel fully informed about the situation.

More Information Provides More Clarity
Lawyers who review E & O insurance claims state that they often see problems because inspectors did not provide enough details about an issue.  This goes hand in hand with the earlier comment about photographs.  Give lots of information about everything.  Mention any detail that you can such as make and model of appliances, measurements of leaks or holes, number of wires exposed and any other small point that can be made about an issue.

Make Note of What's Missing From the Report
If you are not able to inspect something then you should make notes to that affect. For instance, if power is shut off to the basement of a home then you cannot inspect any electrical outlets, lights and any other item that operates from electricity.  Make detailed notes about anything that prevents you from doing your inspection completely. 

ArticleSource: ArticlesAlley.com