The following story of clogged sewer drains after the home inspection is a real claim from our archives. To protect the insured’s identity, all identifiable characteristics—including names, associations, and locations—have been omitted or removed.
How many times have you returned home from the grocery store, only to realize you left a crucial item back at the cash register? Now you’re home and too exhausted to drive back and get it. You probably carry on with your night. Worst case scenario, dinner is missing thyme or the kids don’t have the after-dinner snack they wanted.
On rare occasions, this also happens with home inspections—although the outcome is much, much worse. A client pays for specific services, and for whatever reason, one of those services slips through the cracks. Unlike forgetting thyme at the grocery store, buyers not receiving a paid service can spark anxiety, purchase regret, or even a claim.
One InspectorPro insured experienced this firsthand when a clerical error led to a forgotten sewer scope inspection. Later, the client experienced clogged sewer drains after the home inspection. Unfortunately for the inspector and his client, the outcome was a little trickier than a missing dinner ingredient.
The home buyer, Samantha, had paid her home inspector, Jim, for a home inspection and multiple add-on services. But while reviewing her report months later, Samantha noticed that one service was missing. She couldn’t find any information about the sewer inspection for her home purchase.
Because Samantha’s 12-day window had already passed, Jim didn’t have enough time to come back for the sewer inspection. It didn’t help that Samantha received the report five days post-inspection, so she only had seven days left until the deadline.
Samantha, a veteran, previously had no plans of buying her own house. That was until someone from Veterans Affairs informed her that she qualified for one. Between Samantha’s excitement about the house and anxiety about her time crunch, she didn’t push the missing service. Instead, she purchased the home without the sewer scope inspection, and Jim’s team refunded the service fee.
Things quickly took a turn for the worst. Her first day in the house, the sewer backed up every time Samantha flushed the toilets or ran the shower.
It seemed the sewer scope might’ve made a difference after all. Instead of finding the clogged sewer drains after the home inspection, the scope service might’ve revealed the sewer problems before she moved in.
How did this mixup with the sewer scope inspection report happen?
Before Samantha, another potential buyer had the house in escrow. That transaction never went through.
As it turned out, the previous buyer had also solicited an inspection from Jim’s business. The other client had backed out of escrow and, therefore, didn’t need the inspection. But when Samantha requested her inspection, Jim’s employer had assigned her the same inspector for the same property.
When Samantha checked her records, it wasn’t her name on the report, but rather the previous buyer’s. Jim’s employer had accidentally tasked him with the services the previous customer had requested—not the ones Samantha had requested. This led to the omitted sewer scope.
Jim’s employer heard that Samantha was experiencing clogged sewer drains after the home inspection. After hearing the sewer line backed up, they promptly contacted us.
Because Samantha hadn’t demanded money yet for the sewer line blockage, our claims team was able to file this as a pre-claim and investigate with ample time to deescalate the situation.
Part of their investigation involved hearing both sides of the story. From Samantha’s point of view, she understood the seller and the seller’s real estate agent likely shared liability.
The real estate agents, on the other hand, blamed Jim. Their logic: If Jim had performed his sewer scope inspection as requested, he would’ve reported a tree root intrusion in the waste line under the driveway. Samantha and the seller could have addressed the clogged sewer line before closing on the house. Instead, the seller solicited their own plumber after Samantha moved in. That plumber performed a sewer scope and discovered the severe intrusion causing the clogged sewer drains after the home inspection.
As for the seller, they claimed they didn’t know about the intrusion. But our claims team suspected the seller knew more than they let on. After all, the sewer was already backing up when Samantha moved in. It’s possible the seller knew about the sewer issues but chose not to disclose them.
Samantha paid another $450 for a second scope, which confirmed the root intrusion. To fix the sewer line blockage, she would need to remove part of her sidewalk, driveway, and yard, then re-pave the sidewalk and driveway.
Between the original plumbing fee, the additional sewer scope fee, and the repair costs, the sewer issue would cost nearly $28,000 to investigate and repair. Samantha asked her inspector to cover those costs, elevating the pre-claim to a claim.
There were a few saving graces for this so-called “failed sewer inspection” claim.
First, the inspection client hadn’t hired an attorney, which made things easier for our claims team. If they could reach a direct settlement with Samantha about the home inspection and bad sewer line conflict, they could potentially avoid going to arbitration or court. This could cut defense costs and save our inspector money.
Our claims team wrote a letter denying Jim’s liability. Then, they offered Samantha two times Jim’s limitation of liability for a total of $1,030. She declined the offer, upset that repairing the damaged pipe alone would cost nearly $8,000.
After that, our claims team bumped their offer to $4,250. She accepted this final offer and signed a release of liability. This released Jim’s inspection company from any further allegations that may arise—involving a clogged sewer drain after the home inspection or anything else.
How much did our insured inspector pay? Jim’s employer started with a $5,000 deductible. But because the claim closed at less than their deductible, it down to $4,250. And despite the conflict escalating into a claim, they still qualified for our pre-claims assistance early reporting discount. This cut their deductible in half.
It doesn’t stop there. We also rewarded our insured for consecutive years without a claim; the diminishing deductible discount cut the remaining number in half. Finally, because Jim was using InspectorPro’s model inspection agreement and got it signed before starting the inspection, he qualified for another $1,000 discount.
In the end of this home inspection and bad sewer line ordeal, after a nearly $28,000 demand, our insured inspector only paid $62.
What can this pre-claim turned claim teach us?
Here are three takeaways that can help home inspectors prevent similar conflicts.
It doesn’t matter if you’re facing clogged sewer drains after the home inspection or something completely different. Don’t try to resolve claims yourself. Despite common myths about reporting claims, failing to report puts your coverage at risk. Additionally, early reporting can provide peace of mind at no cost to you.
As the inspector in this case study experienced, the sooner you report an incident to your insurance provider, the sooner they can investigate and take action. They can often intervene before the claimant has a chance to get more upset. Additionally, early guidance from our claims team keeps things running smoothly from beginning to end.
Ideally, you might even qualify for our pre-claims assistance. In 85 percent of the cases we see, pre-claims don’t escalate to a claim, and you don’t pay a cent for the help. If, however, your pre-claim does become a claim, like it did in this home inspection and bad sewer line story, you could get up to a 50 percent discount off your deductible just for using pre-claims assistance.
So protect your business from needlessly expensive, drawn-out conflicts and save big by reporting as soon as possible. If you’re insured with us, give us a call–it can only help!
Read another successful pre-claims assistance story here. It doesn’t involve a clogged sewer line or failed sewer inspection. But, like this case study, it demonstrates the power of having an efficient pre-claims team in your corner.
Jim’s employer had another advantage working in his favor. The company paid to have coverage for all their ancillary services.
There’s a common misunderstanding that inspectors can only get claims for services they’re actively providing. The unfortunate reality is clients can file claims against you even for services you didn’t perform. For example, Samantha could’ve filed a lawsuit against Jim’s business for neglecting to report evidence of mold, even if Jim’s business didn’t offer mold inspections. In this scenario, not having a mold endorsement could’ve put his insurance coverage at risk.
That’s why every inspector should secure endorsements for their offered services. In fact, it may be helpful to get coverage for the ones you don’t offer, too.
Consider which claims are most common to the industry overall. Mold, for example, is the fourth most common type of claim we see. You might also consider which services are most popular in your inspection region in case a client assumes you offer something you don’t actually offer.
These strategies can help you get ahead of frivolous claims against your business. Plus, taking advantage of InspectorPro’s Bundle means you can secure mold, radon, pest, septic, pool, code, lead, and carbon monoxide coverage together for a lower price.
Read about the benefits of a sewer scope inspection endorsement and other specialty inspection endorsements here.
Sometimes you do everything right. Like Jim’s employer, your careful risk management could earn you years without a claim. When a client does get upset, you inform your insurance provider in a timely manner. Not to mention, you’ve assessed your risk and verified you have all the endorsements your business needs.
But as our case study shows, even if everything else goes right, accidents can still happen. One minor error, oversight, or misunderstanding in your paperwork can cause an inspector to miss a service your client paid for. If they find clogged sewer drains after the home inspection, you may be the first person they call.
In stories like these, one of the best things you can do is also the easiest: Have a solid agreement that you get signed before every inspection, every time. And don’t forget your sewer scope inspection agreement for those standalone sewer scope inspections.
Lots of inspectors use hand-me-down pre-inspection agreements or free templates that come with their reporting software. These agreements are often missing crucial provisions, like the limitation of liability and arbitration clauses mentioned in this story. Such clauses are designed to protect you and your business. But they can’t protect you if your agreement doesn’t include them.
Our inspector in this case study used InspectorPro’s pre-inspection agreement. Its provisions were adapted according to the rules, regulations, and case law in his specific state and to the specific services he offered. Plus, he received a $1,000 deductible discount for using it and getting it signed prior to the inspection. It’s the easiest and most rewarding switch you can make for optimal risk management.
Don’t overlook the value of a solid agreement, and don’t leave your liability to chance. You never know when clogged sewer drains after a home inspection will be your next phone call.
If you’re a current InspectorPro insured, be proactive against potential claims and ask about our expertly crafted pre-inspection agreements. They’re available to our clients at no extra charge.
Call a team member or fill out our online form to start the process. We’re happy to answer any questions you may have about transitioning to your new agreement.
Interested in our early reporting discounts, diminishing deductible discounts, and meticulously constructed agreements, but aren’t currently insured with us? We’d love to chat! We offer an easy, no-obligation application on our website.
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