The following is a real errors and omissions (E&O) case study from our home inspection insurance archives. To protect the insured’s identity, all identifiable characteristics from this “bats in the attic” pest claim—including names, associations, and locations—have been altered or removed.
One night, as the Peterson family got ready for bed in their new home, a bat flew into their autistic child’s room. The child was terrified, but his parents were able to calm him down. While the family didn’t spot any more bats that night, they did notice a bad smell.
Not long after, the Petersons were enjoying a night outside when they spotted more bats. According to their reports, 150 bats swooped out of the attic from a hole in the soffit. One of the bats bit Mr. Peterson before flying away.
Contractors searched the attic. In addition to the hole in the soffit, they found other signs of bats in the attic and signs of a bat infestation. They discovered piles of guano, or bat feces, and damaged wiring. Since guano is toxic and can cause serious respiratory illnesses, the family put their belongings in storage and moved into an RV. Mr. Peterson began undergoing rabies shots for the bat bite.
Clearing the bat infestation in the attic, including guano removal, electrical repairs, and soffit repairs, was quoted to cost over $10,000. Mr. Peterson’s rabies shots would cost $13,000. The Peterson’s lawyer delivered these costs to their home inspector in the form of a lawsuit.
The inspector had insurance, but he lacked two essentials: a pest endorsement and a signed agreement. No pest endorsement meant his policy couldn’t respond to a claim for bats in the attic or a bat problem in the house. No contract meant he forfeited his coverage and his best defense. The inspector was stuck facing the claim on his own.
We don’t like writing unhappy endings. We want to defend you. Our bread and butter is stifling client complaints before they turn into claims, and closing claims at no cost to you. It’s what we do and love best. But if home inspectors don’t meet their insurance policies’ basic requirements, the insuring agreement ties our hands, and we can’t fight for you.
Do us a favor: Do your part to erase the unhappy endings, like the one in this story of the bat-infested house. Help us help you by learning from the cautionary tale above with these tips below.
That sound you hear? It’s us, talking like a broken record about getting agreements signed. And we’ll keep talking about it until we stop seeing claims with unsigned contracts.
Your clients have to sign your pre-inspection agreement before you start inspecting. It makes a difference whether you’re accused of missing roof problems or signs of a bat infestation, or mold health concerns vs bat guano health hazards. Signing after you start or not at all isn’t an option. They must sign before you start.
The home inspector in our bats in the attic case study didn’t have his clients sign his agreement. That’s as bad as getting into a car, not buckling your seatbelt, and cutting your brake lines for good measure. It’san accident waiting to happen.
Secure your best defense by getting your agreement signed before every inspection. For more on why you need to get it signed before, check out our article on contract signatures. For more on how to get it signed ahead, check out these 12 tips from your peers.
As an InspectorPro insured, you receive a lot of benefits:
But the one we really want to shout-out here is our model pre-inspection agreements. They’re meticulously crafted, courtroom-tested, experience-driven, and state-specific. Plus, if you get a claim using one, we’ll give you $1,000 off your deductible. So if you’re currently insured with us and don’t use one already, contact your broker to get your free upgrade.
While not getting his agreement signed was the biggest mistake the home inspector made, not carrying the right endorsements was a problem, too.
Endorsements change or add coverage to your insurance policy. Since many inspector insurance policies exclude coverage for ancillary services—or additional services like pest inspections, including bat inspections—you’ve got to purchase endorsements to receive protection for those claims.
Just because you don’t inspect for pests (and your agreement says so) doesn’t mean you can’t get a bats in the attic pest claim. Ask yourself: How much am I willing to pay for claims against my home inspection business? If you’re conservative and want as many claims covered by your insurance as possible, consider carrying endorsements for common types of claims. You might also consider the InspectorPro Bundle, which gives you mold, radon, pest, septic, pool, code, lead, and carbon monoxide coverage together for one low price.
To have insurance coverage when you need it (like if clients blame you for missing a bat colony in the attic), get to know your responsibilities as an insured. Read them straight from your policy, or check out this summary of common insurance company expectations.
Not sure what something means? You can brush up on common terms in our insurance glossary, and ask our talented support staff any question you’d like. They’re on the other end of the phone happy to help.
Over 15 years in and we still love insuring home inspectors. Let us bat a thousand for you.
Our claims and broker teams know the ins and outs of the industry. We’re ready to give you coverage and defense worthy of a home run. Apply for a free quote today.
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