Many Real Estate professionals, such as Real Estate Agents, Home Inspectors, and Appraisers, are seeing dramatic increases in E and O Insurance premiums, mostly related to liability issues.

As a Home Inspector in the Charleston area, I am aware of some of the issues that often come up, usually through no fault of the Real Estate Agent, the Home Inspector, or the Appraiser. But the fact is there is an unhappy client for some reason or another, and they want compensated, usually by means of litigation. The good news is this: If you are one of the fortunate real estate agents who enters the free Agent Indemnification Program through InterNACHI, your liability is minimized.~In short, if you are successfully sued for a negligent referral of an InterNACHI Inspector, you will be awarded $10,000!

If you want to decrease your liability, then refer an InterNACHI Certified Home Inspector. And if you want to refer the "best of the best", then refer your client to a Certified Master Inspector©. Just enter the zip code in the "Find a CMI" box, and you will find the Best Inspectors in the World.

There are a few other ways to reduce liability risks:

Make sure the Home Inspector is Licensed and Insured.

Attend the Inspection. You have a relationship with your client, and can convey some of the findings with your client, and it shows your professional interest and concern.

Recommend the Inspector who offers the highest value, not the cheapest price. Cheap Home Inspectors do cheap home inspections, and offer less value to your client. 

Manage your client's expectations. Not every problem will be discovered during the Home Inspection.