By the time the inspector received the attorney letter, the claimants had already removed and replaced the stoop. If you are going to sue a home inspector, you should consider whether or not your case is strong. To prove negligence, you must be able to show that the inspector did something wrong (typically something another inspector wouldn't have done) and that their action or inaction directly caused you damages -- usually the cost of fixing the defects. An inspector's duty is critical to a potential buyer's decision about whether or not to purchase a home. If the inspector missed an issue with the home, the home builder may be held liable for a lawsuit after the sale. Errors or failures during the home inspection process may result in monetary damages against the home inspector. [The contractor] had the benefit of knowing what the issue was, focused on that issue, and looked for differences between what the [home inspector] reported and what he would have liked to have seen in the report, the claims team explained. Although the pay is good for home inspection, the profession comes with some challenges. Major insurance companies in Tennessee have approved our coursework for home inspector errors and omissions coverage. InspectorPro Insurance . Therefore, the attorney argued, our home inspector owed the tens of thousands of dollars required to replace the polybutylene pipes on the property. The other half is having them at the ready when a claim comes along. Different states have different rules and regulations governing suits against sellers for undisclosed, known defects. Following is the complaint form used by the Department of Commerce and Insurance, Division of Regulatory Boards. Further, they emphasized that the pricing structure for the condo inspection takes the exclusion of common areas into account. Wood rot. Send the claim to us. Prior to the inspection in question, another home inspector had performed a home inspection on behalf of another prospective buyer. PHIIs Tennessee home inspection course can be completed in 1-2 weeks, depending on your previous experience, as long as you have previous experience. The inspector should have noticed the musty smell in the basement, the company argued. For information pertaining to the testing material for the National Home Inspector Examination, please visit www.homeinspectionexam.org, or you may call 1-847-298-7750. Providing plenty of documentation and evidence may also help your case. All required materials for the course, including a 100% online access package, a workbook, DVD backups, and more, will be included. Two months post inspection, another home inspector received a letter from his client demanding tens of thousands of dollars in remediation, repairs, medical bills, and rental costs in association with mold hed found in the home. The inspector may not always discover or be aware of every flaw or defect in a home. Regardless of where the piping existed in the condo, it wasnt visible during the inspection and, therefore, out of scope. Your report should have a clear indication when something was not inspected. Thus, its important to make sure to review your insurance policy. 1. To prove the home inspectors liability, the following scenarios should be present: A client suing a home inspector may resort to different legal claims such as negligence, breach of contract, or misrepresentation. If the sink was clearly and extensively leaking, and the inspector had clear access to it but did not document the leak, you should be concerned. For the plaintiff to win a negligence claim, there are four elements that he or she must prove. It is legal to sue a home inspector for negligence, as long as you make a reasonable effort to avoid it. Fox News announced in an abrupt statement it will "part ways" with longtime host Tucker Carlson, seen by many as the face of the network's brand. Home inspectors are impartial third parties who often deliver bad news to prospective home sellers and home buyers which can cause complaints. The vast majority of them will face lawsuits in their careers, but that does not mean they are legally liable. The client emailed the home inspector again, claiming that, since the contractor completed the repairs, the roof was worse. matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. Fixing it is part of the original contract only, so the contractor or installer might dispute the report. The inspector will most likely be looking for a few things, so learn what he or she will look for and how to deal with them. Rockville, MD More, 7 Things to Do If You Receive a Complaint: ASHI Webinar For starters, the home inspector should have called pre-claims assistance immediately after receiving the clients first email. . For example, the contract could say that the inspector is required to testcertain components of the electrical system or check for lead-based paint. The inspector may require you to withdraw the suit through a demand letter from your attorney. Tips for Filing a Claim Damage caused by tornadoes is covered under standard homeowners and business insurance policies . Nov. 12, 2004 11:59 pm ET. Recently, his clients had noticed a leak in the roof and called a professional roofer to fix the issue. If youre not happy with the work your home inspector did, you could sue for negligence. If you believe you might have legal claims against your inspector, it could be worth sitting down with an attorney and reviewing the contract you signed with your inspector. If you discover serious issues with a home after buying it, your first instinct may be to sue your inspector. After much deliberation, our claims team settled for half of the original demand and a release of all claims. Nine months after his inspection of the home, another home inspector received an email from his inspection clients. Some clauses include language that specifies the inspector may only refund the cost of inspection if substantial damages are discovered later. To learn more about roof damage claims and how to avoid them, read our stand-alone article on the subject here. Those mold inspectors implied that the home inspector should have identified the mold. Home inspectors are frequently members of professional associations such as the National Association of Home Inspectors (NAHI). After all, you never know when youll need that photo of the bush in front of the propertys exterior wall. As an exclusive home inspection insurance provider, we know the industrys top claims inside and out. Upon reviewing the inspection assets, including the pre-inspection agreement and report, our claims team found that the home inspector had observed that the roof had raised shingles and improperly installed gutters that could lead to water damage. We revisit each claim type by looking at recent claims from our archives and the lessons we can learn from each of them. Flailful lawsuits and indemnity claims have different laws in different states. When sues a home inspector, you should keep a few things in mind. One year later, those allegationswater damage, roof issues, foundation defects, mold, and plumbing problemscontinue to be common. It takes up an average of 12 hours per day for Tennessee-based training, including course instruction, field assignments, report writing, and testing. He photographed but did not call out the water stains on the exterior siding, the company wrote. If you win a case against a home inspector, you might be able to recover financial damages to help your property recover. If you successfully sue your inspector, you may be able to recoup some of the costs associated with a home purchase or sale. Review your policy or ask your insurance broker to find out your carriers reporting policy. Thus, the water staining the inspector photographed and reported was redundant; the owners had already disclosed the damage, so the staining provided no basis for further action. Moreover, we offer benefits likefree pre-claims assistance,diminishing deductibles,early claims reporting discounts, and arisk management blog. Heres what you need to know. The original home inspector missed all of these. All rights reserved. Including clauses that identify repairs and your clients duty to monitor those repairs, as the home inspector in this example did, is a good way to deter and combat claims. If the inspector skipped an assessment step, it could be a reason to sue for breaking the contract. Upon discussing the allegations with the inspector, our claims team learned that there had been bushes and overgrowth concealing the exterior wall at the time of the inspection. Scholarship information for training, related expenses and the National . In so doing, he put himself at risk of not receiving defense and payout help. The board conducts formal hearings when necessary and prosecutes by due process any violators of KRS 198B.700 - KRS 198B.738. Photo credit: iStock.com/RichLegg, iStock.com/zimmytws, iStock.com/mediaphotos. Further, the claimant refuses to lower their tens-of-thousands-of-dollars demand. Ultimately, it is up to the individual home inspector to decide whether or not to sue their clients, and each case must be evaluated on its own merits. may sound easy, but its still complicated and hard to manage alone. A real estate agents primary motivation may be a homes sale. Although the leak itself was concealed and, therefore, unidentifiable at the time of the inspection, the attorney alleged that water from the leak was seeping through the exterior brick wall. In the letter, the claims professionals argued that the inspector had followed the SOP and performed a proper inspection. A clear and concise statement, in detail, describing the facts surrounding the incident(s), including: The time and place of occurrences; Who was involved or present; State laws outline the standard of care a professional must provide the paying client. For example, if you found a big crack in the foundation, its a good idea to take pictures of it. Choosing a home inspector should include their certification and experience. . Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. They are not liable for the advice they give on this point. A week after the inspector sent his response letter, he received another letter from the attorney. Which brings us to the uncomfortable truth: Weve seen our fair share of claims in which the inspector would have seen the signs of foundation damage had the signs not been concealed, had the inspector not been distracted, or had the area been accessible. A client asserting claims against a home inspector may rely on a variety of legal theories, including negligence, breach of contract, and misrepresentation. A large part of protecting your business involves documenting your home inspection and preserving your inspection assets. A home inspector can also provide guidance on how to maintain the home and make any necessary repairs. There is almost never an inspection that includes this provision: It is critical that your report clearly demonstrates whether something was not inspected. Regardless of whether or not you decide to perform mold screenings, clients can file mold claims against you. Editors note: InspectorPro originally published a Top 5 Claims article in November 2016. That might, for example, be the cost of repairing the damage from the burst pipe. Additional services can be provided by certified home inspectors, such as radon testing and asbestos testing. This can serve as legal grounds for a claim if the inspector fails the. This is extremely unethical and can be very harmful to the buyer. This amount of money is likely insignificant compared to what you will have to pay to cure various structural or mechanical defects now found in your home. Learn more about FindLaws newsletters, including our terms of use and privacy policy. And he or she may need to determinethat your first inspector should have noticed the problem you discovered after buying the house. Breach of contract If proving the inspectors negligence is impossible, it may be better to look into other legal grounds such as the inspector failing to perform specific duties included in the contract. If you are thinking of suing a home inspector, here are some tips to keep in mind: With a damaged house to take care of, filing a lawsuit may not be one of your top priorities. Consider the following issues before you pursue a lawsuit, and consult with a real estate attorney if you are unsure about your case's strength. In many states, professional care is defined by the standards of care that a professional must provide his or her clients. In some states, the information on this website may be considered a lawyer referral service. TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select, Please enter a legal issue and/or a location, Begin typing to search, use arrow Reporting policies require inspectors to notify insurance companies of both claims and potential claims within a certain amount of time. How to Sue a Home Inspector with DoNotPay. Ask our Home Buying expert. Average Retirement Savings: How Do You Compare? | Last reviewed August 24, 2020. Since the polybutylene piping was only visually identifiable in the attic, and the attic was not included in the inspection, the client should be responsible for the piping remediation, the inspector argued. In the contract, he may be held liable for any damage, and he may be required to pay for the repair. The home inspector's duty is crucial because it influences the potential buyers decision before closing the sale. According to the American Society of Home Inspectors (ASHI) Standard of Practice (SOP), the home inspector was NOT required to determinethe strength, adequacy, effectiveness, and efficiency of systems and components. The home inspector was only required to report on and describe the type of materials used, which he did. Understanding these will help inspectors to better understand how to reduce their risk of . Here's a guide on how to file a claim against a home inspector. Before reaching the issue of claims against the home inspector, consider making a claim against the home seller. Additionally, the realtor had told the home inspector that the floors were uneven floors because the last homeowner used a walker to get to the bathroom, and the inspector had verbally accepted this explanation. The mold exclusion, the SOP, and the call for further inspection all emphasized that there wasnt a mold inspection. You might claim that your home inspector didn't honor your contract, or acted negligently. Be mindful of exonerative clauses Make sure to read the fine print of the inspection contract. According to the inspection clients, the roofer said that there was no way anyone with any training in roofing put that roof on, and that there is no way that it should have passed the inspection.. Food (Except Meat, Poultry or Processed Egg Products) Phone the FDA Main Emergency Number at 866-300-4374 or phone the Consumer Complaint Coordinator for your state or area. Ask to be named as an additional insured on the insurance policies of the businesses to whom you refer business, including other home inspection businesses and contractors. Hundreds of residents across the state are suffering from the aftermath of the recent tornadoes that hit Indiana at the end of March. Not to be confused with septic, sewer and waste issues, plumbing problems like the one in this example are the fifth most common type of claim against home inspectors. Negligence is ordinarily defined as the failure to act as a reasonable person in the same shoes would have acted, where damages result from the behavior. A confidential negotiation or mediation might be the best mechanism to achieve a settlement of your claims against your inspector. Let's say, for example, there's a strange smell in the basement, which turns out to indicate an extensive water leak, which caused mold. While, as a home inspector, it is not your job to diagnose repairs proficiency, it is important for you to draw attention to repairs. Home Inspectors are legally liable for actions taken by them, whether they work alone or with a private organization. If you are considering buying a home, it is important to do your research and make sure that you find a reputable home inspector. However, it is a common scenario where new owners discover problems weeks or months after closing a sale. Your email address will not be published. 2600 West Executive Parkway, Suite 500 (Read more about additional insured endorsements here.). When filing a small claims case, a court must consider four factors. If you can demonstrate that the inspectors findings caused you harm, you could have a good case. April 29, 2023 A snowstorm would make the driveway and roof inaccessible. You likely signed a waiver or contract when you hired your inspector. You likely cannot sue them just because the buyer lost interest in the home. However, suing and winning a case against a home inspector may be able to award you with financial damages that can help restore your property to a livable state. For example, the inspector may include wording in their contract that only requires them to repay the buyer for the cost of the inspection, if necessary. Before suing a home inspector, you should ask yourself if your side of the case is strong enough. Further, if you want coverage for mold claims, most providers require that you purchase an endorsement, or policy add-on. Whether you have a good case depends on what they did and how it caused you harm. For information regarding a specific legal issue affecting you, pleasecontact an attorney in your area. So if you find a hole in your roof that costs $15,000 to repair, your inspector would only have to reimburse you for the money you spent on the inspection fees. Name While the home inspector did note uneven floors in the bedroom in his report, his report did not recommend further evaluation. Verify what mold coverage your policy includes, if any, and what coverage you might add to limit your liability. entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN. How to Pay Your Houston Water Bills Online Hassle-Free, How to Remove My Case From The Internet Instantly, How to Recover Your Forgotten Workday Password Hassle-Free, Sending Money to an Inmate Has Never Been Easier, Credit Card Dispute Letter Template That'll Get Your Money Back. In addition to the buyers right to sue the builder, the builder may be held liable for breach of warranty. Concerns about the foundation, roof, windows, and electrical systems of a home should be investigated. Inspectors do not intrusively inspect a structure; they do not poke holes in walls or move boxes or furniture. Or, if you purchased a newly constructed home, you might have legal claims for defects against the home builder. Therefore, its important for home inspectors to be particularly cautious and vigilant. June 9-11, 2023 Lastly, be sure that, whenever you refer another company business, you do so safely. For the plaintiff to win a negligence claim, there are four elements that he or she must prove. Be cautious and vigilant to avoid the underbussing that you can. The owner of your home will shorten your to-do list if he or she fixes a leaking faucet, replaces a missing doorstop, or re-attaches a downspout. A home inspector is a professional who is aware lawsuits are a part of their job. When you find out that your insurance company's adjuster has sent you a lower-than-expected claim, you may be upset and worried. If you feel that you need legal assistance, you should consider contacting private legal counsel. There are some defects that are not detectable and will reappear over time. Plumbing. The client wasnt satisfied. Buyers are not usually entitled to recover damages from contracting parties if they are negligent, but this is a legal concept. The seller may have also accidentally or non-maliciously failed to clear boxes or furniture barring access to the attic, rooms, closets, electrical boxes, plumbing, utilities, and more. But youll need to consider whether your seller should face consequences. Blame game aside, there were things that this home inspector could have done at the beginning to potentially avoid having a claim altogether. The report you will get is often 50+ pages and documents the inspector's time on the property. Home inspectors are impartial third parties who often deliver bad news to prospective home sellers and home buyers which can cause complaints. All investing involves risk, including loss of principal. Our proven track record of filing lawsuits include suing companies such as: We have helped over 300,000 people with their problems. To win your case, you will need to prove that the home inspector was negligent in their duties and that this negligence caused you to suffer damages. One year later, those allegationswater damage, roof issues, foundation defects, mold, and plumbing problemscontinue to be common. These states may have higher costs of living than other states, which will have an impact on the salaries of their inspection officers. In addition to demonstrating how the inspector met the SOP in his report, our claims team explained how the construction companys letter manipulated what visual property exams actually require. An example is when the home inspector skipped items on a checklist which resulted in water leaks or faulty electrical wires. In contrast to a home inspector, an appraiser will not venture into the basement or crawl down onto the roof to inspect. Show your determination and your intention to act quickly when you present your documentation to the builder. The plaintiff must prove that the contractor's mistake resulted in damages and specify the dollar amount lost. But what if, weeks or months later, you start to notice problems no one warned you about? They have a strong understanding of electrical, plumbing, city codes, infestations, utilities, and appliances. To be a Home Inspection Specialist (HIS), you must have a state license, according to the Georgia Department of Labor. Above all, we recognize that obtaining or switching insurance providers can be stressful for you. A license to practice as a home inspector in Georgia is not required, but the state regulates the industry. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. In most states, sellers can face liability if they fail to disclose a material defect with the home that they knew about at the time of sale. It was at this point that the home inspector informed us of the situation. (To learn about the Top 5 Claims home inspectors receive, click here. When an inspector reports a false or fraudulent claim, he or she is committing fraud. Finding a financial advisor doesnt have to be hard. All complaints submitted to the Tennessee Division of Regulatory Boards are subject to the Public Records Act, T.C.A. If you do not have professional-level knowledge of these areas, you may not understand what the report says or the extent of the problem. This indicates that there are some bad apples in the profession, and that aspiring inspectors should be prepared for difficult and demanding work in the future. Such records could have greatly aided the inspector in the example above. Lastly, the company stated, the inspector should have made recommendations to prevent future water intrusion. Please try again. California, Florida, and Texas are three of the states with the highest paying home inspectors, according to BLS data. He then recommended that the claimants monitor those repairs to ensure they were sufficient. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). Errors or failures during the home inspection process may result in monetary damages against the home inspector. If you are thinking about suing your home inspector, you should first consult with an experienced lawyer to discuss your case and see if you have a valid claim. Three months later, additional leaks appeared in separate areas of the home. Therefore, it is necessary to have a contract that explicitly outlines the home inspectors duties. (Read more about exclusions in pre-inspection agreements, including samples, here.). Get more information on this here. Claims professionals recommend keeping inspection assets at least five years, regardless of the statute of limitations in the inspectors area. Meeting with a lawyer can help you understand your options and how to best protect your rights. Contact a qualified real estate attorney to help guide you through the home buying process. Buying a home comes with many challenges and home inspections could be one of the least of your worries. Jennifer will be a Legal Writer for LegalMatch in 2020. Even new construction has defects, and the inspector is there to explain the report so you can make your own decision on the house. The home inspector was pleased to pay significantly less than his deductible amount and to see the claim close once and for all. Search, Browse Law Question: My husband and I recently purchased a house in Dallas, and within 2 1/2 months our home's foundation started to drop. Hilton St. Petersburg at Bayfront, FL More. You might also have a cause of action for breach of contract, particularly if you had a written contract with the inspector in which he or she agreed to perform certain specific types of review that were, in fact, never actually performed. Further, the inspector had advised the client to have a professional roofing contractor evaluate the entire roof. You can choose to go to a small claims court (your winnings are limited to your state's cap, often around $10,000) or take the lawsuit to the local courts. The claimants, a married couple, alleged that the home inspector failed to report significant defects to the propertys front stoop. Most sellers will play ball with this idea if they don't want to risk losing the sale. The letter closed with a demand for the inspectors insurance information. Its not uncommon for inspectors to include an exculpatory clause, which limits their liability. With the Sue Now product, all you have to do is: Log in to DoNotPay and select the Sue Now product, Select whether you need a demand letter or court filing forms, Describe the reason for the lawsuit and submit any applicable details, including photo evidence. Although the claim may appear frivolous to you, do not make that determination. Read more about Suing the Home Seller. The home inspectors mistake caused you financial damages. You can read a real home inspector lawsuit case from North Carolina here. ), Additionally, those providers that include mold coverage outright often sublimit the mold endorsement. Before moving forward with such a large financial decision it can be a good idea to work with a financial advisor who can get your finances in order and advise you about what you can afford. If they failed to find something that harmed you or another resident, you have the legal option of pursuing legal action. There is a connection between the inspectors negligence and your damages; for example, faulty electrical wires that resulted in a fire. But proving that the inspector was negligent may not be easy. In that letter, the company argued that the inspector had failed to perform an adequate inspection. Heres a guide on how to file a claim against a home inspector. By FindLaw Staff | The association can only investigate and discipline its own members. Less than a month post inspection, a home inspector received an attorney letter alleging that he failed to detect an active water leak in a bedroom and its bathroom, which led to foundation issues. In this article, we will explain the liabilities of a home inspector and what legal elements you must prove if youre suing a home inspector in small claims court. Here's our list of the 12 most common areas of inspection for which claims are made against home inspectors: Water damage (non-roof) Water damage (roof) Foundation. It is not uncommon for a lawyer to sue a home inspector. Essentially, you would claim that the inspector didn't take reasonable and necessary steps to detect any problems with the home. The claimants argued that they could have avoided this damage had the inspection report provided more information.