In recent years the claims against building inspectors has risen dramatically. This has resulted in most professional indemnity insurers pulling out of this market.

The biggest issue that we have is the insured's delay in notifying us. This can jeopardise our ability to deal with the matter, it could potentially also result in the claim being denied if they have delayed too long. It appears that the main reason behind any delay is that the insured thinks the complaint is baseless and won't go anywhere.

Unfortunately, this is not always the case and it is best to notify us as soon as possible. That way we can assist in dealing with the complaint from the beginning.

Our insurers have identified areas that could help minimise claims in the future.

• A copy of your Terms & Conditions (pre-inspection agreement) must be supplied to the client before an inspection is conducted. This gives the client access to what your inspection will involve and explain the limitations of your report.

• Defects - If you identify a defect you need to provide full details about what it is, where it is and recommendations. This is what the client is paying for, so great care is needed in explaining these defects in the report and get acknowledgement that the client has understood what you have reported.
  Note: Some defects will require further investigation by experts such as engineers eg. cracks in the brickwork. These defects still need to be noted with the emphasis on further investigation being recommended.
• Obstructions - It is very important that you advise where you could not access areas of the property.

• Take lots of photos, even if it may not necessarily be a defect that is required to be included in the report. A lot of claims we have dealt with are where an issue arises after the inspection that a claimant tries to argue was present and missed by the insured. Also make sure the photos are clear and of a high quality.

• Include all advice given in writing. If you give any oral advice during the inspection, make sure it is also contained in the report. If there are any discussion after the report is given, make a written record of what is said and confirm in writing by sending an email to the client. That way it doesn't come down to a he said / she said type of argument.

 

If you would prefer to talk to a broker first, please call 1300-881-779 between 8.15am and 5.15pm E.S.T. business days and receive an indicative quote over the phone.