E&O Rates are going down

Nathan wrote:

William Chandler wrote:Our E&O goes up every year based on increased sales volume (or at least that's what I hear).

As it should, no?

That is the way it seems to work - in favor of the house - LOL!

In fairness to OREP, we are a little difficult for the typical HI insurer proforma. Unfortunately, for us, it is just easier to stick with the same carrier each year regardless of the price. We perform many services outside the scope of home inspections and that excludes the typical carrier/agent catering to the HI industry. When we added Asset Transition Evaluations last year we had to find a separate policy from another carrier and that wasn't easy or cheap. We're gender confused here when it comes to insurance; part HI, part commercial inspector, part IAQ, part construction manager, part engineering and part appraiser. And, don't get me started on insurance for our ADA work - nobody understands that. And, we have to carry a totally separate policy for our pest control work.

Isaac, please sign me up for the Working RE Home Inspectors magazine (print version). I really love your appraisal mag and I have even been quoted in it a few times

Mozart Evaluation, Inc. wrote:Isaac, please sign me up for the Working RE Home Inspectors magazine (print version). I really love your appraisal mag and I have even been quoted in it a few times

Thank you! And of course, just email me the best address for the mailing and I'll see that you get one. My email is isaac[at]orep.org Our upcoming June 2016 issue is going to 12,000 home inspectors nationwide! We've got many of the industries best vendors in the issue. Nathan will have prominent placement too!

William Chandler wrote:Our E&O goes up every year based on increased sales volume (or at least that's what I hear).

That is how the policies work that cover all inspectors in your firm. You hire more inspectors, revenue increases and your policy increases as well. You complete an audit and report revenue when you renew your policy. It's a fair system.

I'm a working man. I don't see discounts for running a tight ship with no claims. Premium based on revenue doesn't make sense.
I had one year where my revenue increased 30% but the number of inspections almost stayed the same so the exposure did not change,
but the rates did. Where is my reward for being a better businessman?

No, the suits think they run my business and I don't like having mandatory partners. I should be able to buy X dollars of insurance coverage and that is it. No audits, no reporting, no nothing. Pay X for $50k in E&O, pay X for $100k in E&O...ala carte. No agents, no memberships, no middle man. Just me and Guido

I could be mistaken, but I don't think you have to have a "mandatory partner". I think E&O is optional in Florida. We are only required to carry General Liability.

Mozart Evaluation, Inc. wrote:I could be mistaken, but I don't think you have to have a "mandatory partner". I think E&O is optional in Florida. We are only required to carry General Liability.

Correct but if you're not carrying E&O, it is a big risk. I carry it for one reason: "Your honor, if I had known this, I would not have bought this house".

Is there an insurance that works with/gives savings if you use RWS warranty and Joe Ferry?

jtroth wrote:Is there an insurance that works with/gives savings if you use RWS warranty and Joe Ferry?

Hi Jim, we don't have a premium discount for RWS Warranty users, but we do have a deductible forgiveness program with Nathan where if you are using RWS Warranty and RecallChek on an inspection, up to $1,500 of your deductible is covered if you're ever faced with a claim and need to pay out of pocket. The RWS Warranty squashes many claims before they ever materialize with so I'd definitely recommend it.