We are starting to hear complaints from inspectors about increases, that are happening again, in the cost of professional indemnity insurance.
We asked the insurers why? Some of the the answers we got back included:
- The underwriters were not prepared to provide covered for a minimum lower than $1,000,000/$2,000,000.
- A large number of claims have been recieved from the profession and the legal defences pushed the costs up.
We have always had serious doubts about the cost of Home Inspectors Insurance, and have in the past, when faced with these claims, tried, on behalf of our members to ascertain the accuracy.
Once again we have asked the insurers to back up these claims with written documentation providing the proof. Instead we got back comments such as “the Fort McMurray fires have lower the profitability of insurers such that our insurances have gone up.”
In a recent study, by insurance companies, the average costs of professional indemnity insurance, regarldess of limits, was placed at $710 per year.
If this is the case, then why are most Home Inspection companies being asked to pay in excess of $3,000 per year?
In order for us to seek out new suppliers of Insurance for our market we need to provide a risk profile for the underwriters.
The simplest way to d o this is to get a loss-run from existing insurers. We’ve tried this in the past and have either been fobbed-off with claims the information is protected under the “privacy act” or flatly refused. In Canada, unlike the U.S and Europe, there are no regulations that force an insurer to provide a loss-run so it is really up to the individual to try to battle their insurer for this information.
In order for us to gain an understanding of what is really going on in the market, we are asking all inspectors to complete this simple survey, accurately and honestly.
If we get back what we are expecting, we believe we will be able to get an insurance premium that allows ALL inspectors to protect themselves while at the same time maintaining a good level of income and protecting consumers at the same time.
We believe it’s time Home Inspectors stoppped working to line the pockets of insurance companies.
Your feedback will help.