$6.4M Lawsuit Targets Home Inspector
Inspecting Joist Hangers on Decks
Inspectors are more likely to face a claim than any other trade or real estate professional. You Need a Team with Experience In Your Corner
Specializing in Home Inspector insurance for over 23 years, OREP Members enjoy pre-claims defense from trial attorney Geoff Binney who delivers decisive response letters and shuts down frivolous claims.
2025, Volume 29
Mission
From the Editor
Readers Respond
Navigating Dangerous Waters: Lessons from 100 Inspection Claims by Kendra Budd, Editor
Inspecting Joist Hangers on Decks by Reuben Saltzman, Structure Tech
Advertise! Now Reaching 25,000+ Inspectors Nationwide!
A Guide for Home Inspectors Considering Additional Services by Kristine Gerber, Inspector Toolbelt
Inspector Faces $6.4M Lawsuit Over Failure to Inspect Adjacent Lot by Kendra Budd, Editor
Father-Son Duo Take on Home Inspecting by Kendra Budd, Editor
28
Attorney’s Fees Clause: A Must-Have in Your Pre-Inspection Agreement by Isaac Peck, Publisher
Detecting Indoor Allergens: A Guide for Home Inspectors by Jamie Coupaud, SimpleLab
32
34
Why “As-Is” Properties Still Need a Quality Home Inspection by Henry Sander, Heartland Home Inspection
38
Air Movement and Venting in the Home by Charles Buell
Working RE Home Inspector magazine is published tri-annually to help home inspectors build their businesses, reduce their liability and risk, and stay informed on important technology and industry issues.
Published by OREP
Working RE Home Inspector is published by OREP Insurance Services, LLC, a leading provider of home inspector insurance nationwide. OREP has a low cost, broad coverage E&O and General Liability policy that includes coverage for radon, infrared, termite, pest/rodent, lead paint, mold, drone, and more. Visit OREP.org/inspectors for more information or to get a quote in only five minutes or less!
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Working RE Home Inspector is published tri-annually and mailed to home inspectors nationwide. The ads and specific mentions of any proprietary products contained within are a service to readers and do not imply endorsement by Working RE. No claims, representations or guarantees are made or implied by their publication. The contents of this publication may not be reproduced either whole or in part without written consent. 4 4 24 12 18 6 20
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Marketing Manager/ Senior Graphic Designer
Ariane Herwig: ariane@orep.org
Editor
Kendra Budd: kendra@orep.org
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by Kendra Budd, Editor
F acing inspection claims is a fear that looms over many an inspector’s head—but it shouldn’t be as frightening as it is. Home inspectors have tools at their disposal to protect themselves from frivolous claims, and this copy of Working RE Home Inspector is packed with actionable advice and cautionary tales. From hard-earned lessons straight from attorney Geoff Binney to high-profile current court cases, and must-haves for your pre-inspection agreement, this issue covers it all.
Claims against home inspectors come in all forms—many stemming from misunderstandings about what a home inspectors’ job entails, which oftentimes leads to over-the-top demands. Attorney Geoff Binney, and OREP’s Isaac Peck sat down with Working RE Home Inspector to talk about some of the crazy claims that have crossed their desks over the years, as well as how home inspectors can best defend against them. To read the full story, go to page 6.
What about real-life scenarios? Well, we have one playing out in real time for a New York/Connecticut home inspector. The inspector has been accused of failing to inspect the property line thoroughly, which in the homeowner’s mind included inspecting the adjacent properties. After the home was purchased, the homeowner discovered rotting powerlines on the adjoining properties, which has cost him thousands of dollars to repair. The home inspector is now facing a $6.4 million lawsuit, despite having a rock-solid pre-inspection agreement including a Limitation of Liability clause. You can read the unfolding case on page 20.
Claims—whether frivolous or not—should never be taken lightly. One essential line of defense is the Attorney’s Fees clause in your pre-inspection agreement, which can serve as a gut-check for shake-down litigation and deter meritless lawsuits. To read more about adding an Attorney’s Fees clause to your agreement, see page 28.
Home inspectors deserve protection, especially protection from frivolous and unwarranted claims. It’s very easy to sue a home inspector, however it’s rather difficult to successfully do so—so long as the inspector has all their legal ducks in a row. Working RE Home Inspector is here to help inspectors comb through the confusing legal jargon, and tell them exactly what could benefit them.
Stay safe out there! WRE
Danger Zone: When Home Inspections Get Violent I did an inspection five or six years ago where the seller didn’t tell her estranged ex-husband that the home was being sold. I was on the freestanding garage roof when I heard my ladder being jostled. I looked over the roof line in time to see someone taking my ladder away from the roof! I yelled “Hey! Hey! Don’t touch that! I’m up here!” He yelled “Who the F- are you?!” I said “I’m an inspector. Who are you?” He looked at me from the ground and said “I own this place! Now get the F- off of my roof before I come up there and throw you off!” I could tell he meant it. Dude was HOT! In the next few minutes it took for me to get down, grab my stuff and put it back in my vehicle, he threatened me a half a dozen more times. I called the Realtor, called the seller and neither did anything about it. I lost the inspection that day and the $675+ fees the buyer had already given me. When I looked the guy up online who accosted me, he was no stranger to legal trouble. Multiple arrests for assault and plenty of time behind bars. I guess I was lucky he didn’t go all-out that morning. Crazy folks are always “on” and regular folks need a moment to realize what’s-what before the fight or flight response kicks in. The Realtor blamed me for the altercation, of course, and I haven’t worked for them since. —Christopher Brunetto
This is such an insightful article! It’s interesting to hear how mold testing can be such a huge revenue driver for home inspectors. I had no idea that SERVPRO was actively declining mold testing work—it definitely opens up an opportunity for home inspectors to fill that gap in the market. The statistic about upselling mold tests to 40 percent of inspections is amazing! —Jeffery Carlos
You can call it defective, but the guy is booked 14 months out. I’m a home inspector and consider myself a very thorough inspector here in Arizona. I don’t do the two-and-a-halfto three-hour home inspections. I’m usually there at least six to eight hours, regardless of how long I’m there I take the time to do it right. I wish I was booked 14 months out. People love drama, it isn’t my style, but again he is booked solid 14 months out. There is a lot to be said for what he has accomplished with his style of marketing. I believe he also has over a million followers. Something to think about. Marketing classes could probably use him as a case study; it would be an interesting course. —Kyle Pritchett WRE
by Kendra Budd, Editor
H ome inspectors are often misunderstood by the home-buying public, with little understanding of what a home inspection is—or what it isn’t. Homebuyers often assume inspectors are responsible for uncovering every hidden flaw, predicting future breakdowns, or even guaranteeing the performance of a home’s systems for years to come. Consumers expect home inspectors to have X-ray vision, a crystal ball (that predicts the future), or to function like warranty providers.
Home inspections are limited, visual, and non-invasive snapshots of a property. Unrealistic expectations put home inspectors on the receiving end of more legal demands, claims, and lawsuits than any other professional in the home services sector.
Inspectors need risk management plans to handle potentially litigious clients who make demands when problems arise after closing.
Specializing in home inspector insurance for over 20 years, OREP Insurance, which administers a national Risk Purchasing Group, has developed a unique attorney-led pre-claims service for its Members.
Unlike other programs that involve adjusters unfamiliar with the profession or that try to “coach” inspectors to respond on their own, OREP Members benefit from direct attorney support and decisive response letters from Geoff Binney, managing partner at Woodlands, Texas-based Gauntt, Koen, Binney & Kidd LLP.
As an experienced trial attorney, Binney has built his practice around construction-defect litigation, first-party insurance defense, and home inspector claim defense. With 15 years’ experience in home inspector defense, he is one of the most experienced lawyers in that field, having worked with many of the largest home inspector insurance carriers in the United States.
Kendra Budd is the Editor of Working RE Magazine and Marketing Coordinator for OREP Insurance. She graduated with a BA in Theatre and English from Western Washington University, and with an MFA in Creative Writing from Full Sail University. She is currently based in Seattle, WA.
OREP and Binney have worked together to help home inspectors respond to over 100 claims. Many never escalated to formal litigation thanks to early, strategic intervention.
Working RE Home Inspector sat down with Binney, as well as Isaac Peck, owner of OREP Insurance, to discuss some of the lessons that have come out of this, including the types of claims inspectors face, what works, what doesn’t, and how inspectors can protect themselves when a client turns hostile.
Here’s what we’ve learned.
Working RE Home Inspector: What are some of the weirdest claims you’ve seen against home inspectors?
Binney: Mold and termite claims. These are often so clearly outside the scope of a home inspection that it’s obvious from the beginning the claimants don’t understand what a home inspector’s duties actually are. In many cases, I’m able to explain that quickly and get the claim dismissed—because mold and termites are excluded under almost every standard of practice I’m familiar with.
That said, not all of them go away easily. I’ve been defending one wood-destroying insect case for over four years now, and we’ve racked up more than $60,000 in defense costs. I’ve tried to explain to their attorney: “If you pursue this, not only are you going to lose, but there’s a real possibility your clients are going to have to pay my attorneys’ fees.” In another case, we won and collected $40,000 in attorneys’ fees from the plaintiffs, which the inspection agreement clearly said we were entitled to. They seemed like decent people, but they ended up on a payment plan to reimburse the insurance carrier.
Peck: One of my favorites is a Florida case where the home inspector filled out a wind form stating that a particular type of roof has an average 25-year lifespan. At the time of the page 8 8
inspection, the roof was 20 years old. Nearly three years after closing, the roof started leaking and an ambulance-chasing Florida attorney sent a demand letter for $60,000 for a new roof, basically arguing that the home inspector had represented the roof would last 25 years and now should have to buy a brand new, nicer roof for the claimant because, in year 23, the roof now required some repairs. The Florida attorney promptly filed suit when the carrier refused to make a settlement offer. When we talk about shakedown litigation that is completely frivolous, unethical, and insane, this is what we’re talking about.
A close second would be the cases where a buyer is doing a gut-to-studs remodel, pulls back the drywall, and discovers some hidden defect like termites or wood-rot behind the drywall. The buyer will then try to blame the home inspector for not having X-ray vision.
Working RE Home Inspector: Are most demand letters and claims against home inspectors legitimate mistakes by the inspector or more on the frivolous side?
Binney: Most complaints I see come from clients who misunderstand home inspectors’ duties and the scope of the inspection. Often it involves something that clearly falls outside the scope of a standard home inspection—even if the issue existed at the time of the inspection. More commonly, though, it’s something that happened after the fact.
In most of these claims, the client truly believes the inspector should have caught the issue or warned them about it. But legally, it’s outside the scope. I don’t think most people are dishonest; they just don’t know any better. And that goes for both unrepresented claimants and those who are working with an attorney.
Peck: Most of the demand letters and actual litigation filed against home inspectors have no merit. Of course, not all claims are frivolous.
With that said, defending home inspectors against claims— whether frivolous or not—is costly. Litigation is set up to be expensive and drawn out. That’s why many plaintiff attorneys are quick to file suit and try to force an inspector and/or their insurance carrier to make a payment. There are some cases, in some states, where we can file for a preliminary judgement based on strong contractual language in a pre-inspection agreement, and that’s ideal. The cost to defend a frivolous claim and actually get vindication and a judgement in an inspector’s favor can exceed $30,000 once litigation starts.
This is one reason why having a strong pre-claims process that includes an experienced attorney is so valuable, because (1) it
“When we talk about shakedown litigation that is completely frivolous, unethical, and insane, this is what we’re talking about.”
ensures that the insurance adjusters are not erroneously negotiating and paying frivolous claims for demands that are well outside of a home inspector’s standards of practice, and (2) it shuts down so many claims that might have ultimately resulted in litigation by explaining upfront, in detail, and with strong clarity why the claim is unreasonable and is unlikely to succeed if the claimant chooses to pursue it further.
Working RE Home Inspector: Have you noticed an increase in claims against home inspectors now that the market has slowed down?
Binney: Actually, I’m seeing fewer claims come across my desk. My docket is lighter than it’s been in a while. These things tend to come in waves, so I suspect it’ll turn around at some point. But right now, I’m seeing a decrease. I can’t say for sure why that is, but from a pure numbers standpoint, there’s definitely been a drop.
Peck: I’d say things have calmed down a little, but proportionally, if we compare the volume that home inspectors were doing back in 2021 versus what they did in 2024 and what they’re doing today, there’s still been an uptick.
Working RE Home Inspector: What are the most common home inspection claims you see?
Binney: It depends a bit on whether we’re talking about preclaims or actual litigation. In the pre-claims process, the issues can vary. But by far, the most common claim I see—both nationally and here in Texas—is related to water intrusion. That includes roof leaks, stucco or window leaks, plumbing leaks, and general water penetration issues.
Oftentimes, a homebuyer moves in and either right away— or sometimes even years later—they notice a damp spot in the ceiling, some rotting wood, or another sign of a water issue. They’ll call out a contractor or roofer, and that person will almost always say something like, “Well of course the home inspector should have caught this.” That happens all the time.
Here in Texas, especially in the Gulf Coast region, we have clay soil that’s known to shift and move. So, foundation issues are also very common, probably second only to water intrusion.
OREP’s E&O+GL policy includes coverage for Mold, Termite/WDI/WDO, Infrared, Pool/Spa, Drones, Carbon Monoxide, and more!
Geoff Binney, one of the nation’s foremost home inspector attorneys shuts down frivolous claims with decisive response letters.
This service is FREE to OREP Members—nothing is billed against your policy or deductible. ($600 Value.)
Beyond that, I see a variety of claims involving HVAC, electrical, plumbing, drainage, pests, and flooring. But leaks and foundation movement are by far the top two.
Peck: Frivolous ones, mostly. Just kidding. I agree with Binney’s assessment.
Working RE Home Inspector : Are home inspectors more likely to face claims than other real estate professionals or folks in the trades?
Binney: Yes, I do think home inspectors face claims more frequently. Claims against them are generally easier to pursue. It’s harder to prove that a real estate agent breached a duty, or that they knew about a defect and failed to disclose it. With a home inspector, it’s often a more straightforward case. Plaintiffs tend to see the inspector as the first line of defense—and often the first target.
That said, it’s very common to see what I call the “shotgun approach,” where buyers sue everyone involved: the sellers, the real estate agents, and the home inspector.
Peck: Yes. OREP has the benefit of serving home inspectors for over 23 years, but we also have deep expertise and regularly work with real estate appraisers, real estate brokerages, and other professionals in the home services sector. The homebuying public often misunderstands what home inspectors do and what they’re capable of. Combined with the fact that inspectors are strategically set up to be the real estate community’s liability bag-holder means that when buyers move into a home and start finding problems, or they have buyer’s remorse, they will frequently zero in on the home inspector as the one to blame.
Working RE Home Inspector: How can home inspectors avoid and defend against claims?
Binney: First, be diligent. Know your duties and stick to them. Provide plenty of information in your report and take lots of photographs—more than you think you need. When there are legitimate claims—and there certainly are—they usually come from a situation where the inspector just had a bad day and missed something. But even when inspectors do everything right, they can still get hit with a claim.
Second, assuming you’ve done your job well, you need to communicate. When a client becomes a potential claimant, maintain a professional tone. Often, people just want to feel heard, so don’t get defensive or dismissive.
Third, have a pre-claims plan. Whether you’re working with a risk management program like OREP’s or not, you need a
strategy before a claim ever arises. That could mean engaging with the claimant directly, working with your insurance carrier, or involving an attorney early on. What you don’t want to do is try to figure it out on the fly while emotions are high. Have a clear plan in place that you can activate immediately.
Finally, have a good written and signed inspection agreement for every single inspection. The agreement needs the proper clauses, it needs to be defensible, written and signed. Without a signed pre-inspection agreement, it’s difficult to get out of the litigation process.
Peck: A strong pre-inspection agreement is the home inspector’s first line of defense. We also always advise inspectors to avoid predicting system lifespans unless absolutely required. Buyers often twist such estimates into guarantees.
Also, if you can’t access a particular area of the home, like a crawlspace or attic, you should disclaim that in your report.
We have disclaimers that we recommend for crawlspaces and attics even when you do have access because it’s often not possible or practical for a home inspector to stick their head in every corner of an attic/crawlspace and look every which way.
Working RE Home Inspector: What would you say to home inspectors who don’t believe getting a signed pre-inspection agreement is necessary?
Binney: As nicely as I can say it—that’s naive in today’s world. Maybe most of your clients are reasonable. But you only need one litigious person. And you don’t have to do anything wrong to be sued.
In that situation, without a signed agreement, you’re in for a long, expensive haul. The difference between defending a claim with a solid, signed agreement versus without one is night and day. I’ve seen it many times.
Peck: There aren’t a lot of insurance programs that cover home inspectors, but most of them require a signed pre-inspection agreement for the policy to respond to a claim. That speaks to how important having a signed agreement is to defend a home inspector in litigation or even pre-litigation.
Working RE Home Inspector: What are the must-have clause(s) for inspection agreements?
Binney: The two most important clauses are Limitation of Liability and Attorney’s Fees clauses. I’m not aware of any jurisdictions that are unfriendly to an Attorney’s Fees clause, and they can make a big difference in how a case plays out.
An indemnification clause is also valuable, especially in cases where someone who didn’t sign the agreement tries to bring a claim. I’ve seen situations where, for example, the husband signs the agreement, but the wife is the one bringing the lawsuit. Indemnification language can help shut that down.
Peck: After Limitation of Liability, my second favorite is an Attorney’s Fees clause that says if the client and the home inspector end up in litigation, the loser pays the fees. In many jurisdictions across the country, the plaintiff can get attorney’s fees if they win their lawsuit and it includes claims under “consumer protection” laws. The courts are one-sided in that regard: a two-sided Attorney’s Fees clause in your agreement basically says the loser has to pay. That’s a gut-check on irrational claimants or aggressive attorneys looking to “shake-down” home inspectors and squeeze a settlement out of the insurance carrier.
Working RE Home Inspector: Geoff, as lead attorney managing pre-claims defense for OREP Members, you’ve responded to over 100 demand letters in the last three years. Is there anything that sticks out or that you’ve learned from that work so far?
Binney: I was surprised at the success rate we’ve had with these pre-claims. I didn’t anticipate that somewhere between 90 to 95 percent of these cases—including many where the claimant is already represented by an attorney—would just go away after we send a response. That tells me the majority of these folks have a fundamental misperception of what a home inspector does and what they’re responsible for. This experience has only reinforced that.
My advice for home inspectors is to have somebody like me— and somebody like OREP—on speed dial. You need an attorney who’s easy to reach, who can answer your questions quickly and help you develop a strategy. Have an insurance company and a pre-claims process in place that you can call on immediately.
When you’re running your business, things don’t always go your way. Even if those situations are rare, you need a plan for when they happen. I’ve seen too many inspectors try to handle claims on their own, only to lose coverage, or lose important legal defenses, because they didn’t report an issue on time or didn’t take the right steps early on. Don’t let that be you. WRE
by Reuben Saltzman, Structure Tech
J oist hangers are metal brackets that support deck joists. It’s almost impossible to build a deck without them, and there is a ton of stuff that can go wrong with the installation. Let’s cover the most common defects we find as home inspectors. (Simpson Strong-Tie® is the largest manufacturer of these products, so I’ll reference their standards.)
Every hole in a joist hanger needs a nail. When nails are missing, the hangers won’t hold as much weight as they should.
The fix here is simple: add nails.
Joist hanger manufacturers specify nails, because screws don’t have enough shear strength.
Reuben Saltzman is a second-generation home inspector with a passion for his work. He grew up remodeling homes and learning about carpentry since he was old enough to hold a hammer. He worked for Structure Tech since it was purchased in 1997 and is now the owner and CEO of the company. To connect with him, visit https://structuretech.com/
The only exception to this is when you’re using a structural screw specified by the manufacturer, such as the StrongDrive® SD Connector screw, pictured above. If I see a screw with anything other than a hex head, I know it’s wrong.
Manufacturers specify full-sized 10d nails for almost everything. Sometimes we find other nails, such as roofing nails.
At other times, we find 10d x1-½” nails used for cross-shear nailing. The image below shows the difference between a 10d nail and a 10d x1-½” nail.
Those short little nails are made for joist hangers that have nails going directly into a joist; they’re short so they don’t come through the opposite side. But most joist hangers today require
cross-shear nailing, where a 10d nail is supposed to go through the joist at an angle and secure it to the ledgerboard, as shown below.
One easy way to know if the nails are too short is to look underneath the joist. In many cases, there’s a gap between the joist and the ledgerboard, and you can see the tips of the nails.
Another way to figure this out is to pull a nail out. If the wrong nails are used, they’ll pop out quite easily with a mini pry bar, like the one pictured below.
If the right nails are used, this little pry bar won’t do squat. The fix is to remove the wrong nails and install something like Simpson’s #9×2½” SD Connector screws.
To view “Repair of LUS Joist Hangers Installed with 10d x1-½” Nails”, go to: https://bit.ly/joistrepair. This document also lists
the newly calculated load capacities, which I personally can’t imagine myself ever using as a home inspector. I leave that stuff up to the engineers.
Joist hangers can be designed for traditional dimensional lumber or manufactured joists. The hangers for these different types of joists are not interchangeable.
And if you have joists coming into a ledgerboard at an angle, you need to use a skewed hanger like those shown in Figure 1. You can’t just take a standard hanger and kinda, sorta make the joist fit.
The entire hanger needs to be installed against a ledgerboard. You can’t leave half of it hanging out in space, see Figures 2 and 3
If you want a joist hanger installed at the end of a deck, you can’t just bend the end of the hanger by 90° and put nails into the end of the ledgerboard (see Figures 4 and 5). You need to use a special hanger on the end with concealed flanges, as shown in Figure 6, page 16.
A joist hanger must be at least 60 percent as large as the joist. A 2×6 hanger can accommodate a 2×8, a 2×8 hanger can accommodate a 2×10, and a 2×10 hanger can accommodate a 2×12. The math is already worked out in Figure 7, page 16.
The treated lumber we’ve used for the last 20 years has chemicals that eat through steel, so you can’t use a standard joist hanger (see Figure 8). Hangers designed for contact with treated lumber will be hot-dipped galvanized or stainless steel. Simpson’s ZMAX® line has an extra-thick galvanized coating, and they have “Z” at the end of their model number (see Figure 9).
Joists should be installed with no more than a 1/8” gap between the end of the joist and the ledgerboard. Larger gaps mean reduced load capacity. We don’t get whipped up about 1/4” gaps, but the gaps shown below would need professional repair.
6: Simpson LUCZ Standard Joist Hangers Installation Guide—Specialized Hanger With Concealed Flanges
7: Conversion Chart Showing Hanger Size No Less Than 60% as Large as the Joist
Summary
There’s a ton of stuff that can go wrong with a joist hanger on a deck. It’s a wonder we ever find them properly installed! No, I’m kidding. Most professional deck builders
get all of these details right without even thinking about it, but many decks are built by other people with no professional background. They keep us home inspectors on our toes out there! WRE
by Kristine Gerber, Inspector Toolbelt
A s the home inspection industry evolves, the demand for comprehensive and multifaceted service offerings is increasing. Homebuyers and homeowners seek convenience and thoroughness, preferring to engage with service providers who can offer a suite of inspections rather than coordinating multiple specialists. For home inspectors, adding services such as septic inspections, mold assessments, and pest control can significantly enhance business value. However, this expansion requires careful consideration of skills, resources, and strategic planning. Here’s a guide to navigating this growth effectively.
Before diving into new service areas, it’s crucial to honestly evaluate your current skill set and identify areas where additional training might be necessary. Home inspectors typically have a strong foundation in building structures and systems, but specialized services often require specific knowledge and certifications. Here are some examples to consider:
Knowledge Required: Understanding of septic system components, soil composition, and waste treatment processes.
Certification: Many states require specific licenses for septic system inspections.
Training: Consider courses offered by professional organizations such as the National Association of Wastewater Technicians (NAWT).
Knowledge Required: Identification of mold types, understanding of health risks, and remediation techniques.
Certification: Organizations like the American Council for Accredited Certification (ACAC) offer recognized mold inspection certifications.
Training: Invest in courses that cover the use of specialized equipment and safety protocols.
Kristine Gerber is part of the Customer Success team at Inspector Toolbelt Home Inspection Software. She helps home inspectors across the US and Canada become more proficient with Inspector Toolbelt and in their business. You can reach Kristine via email at info@inspectortoolbelt.com.
Knowledge Required: Understanding of pest biology, behavior, and control methods.
Certification: Pest control services often require state licensing and adherence to specific regulations.
Training: Pursue training programs through entities like the National Pest Management Association (NPMA).
Offering additional services can be beneficial for your business, but it’s essential to ensure you have the necessary bandwidth and resources to manage the increased workload effectively. Consider the following:
Time Management: Assess how much time each additional service will require. Will your current schedule allow for these new inspections without compromising quality?
Staffing Needs: You may need to hire additional staff or subcontract experts to handle specialized services—factor in the costs and logistics of onboarding new team members.
Equipment Investment: Specialized services often require specific tools and equipment. Alter your budget for these expenses and ensure you have space and capacity to store and maintain them.
Understanding your market is crucial before expanding your service offerings. Conduct thorough research to gauge demand for services such as septic, mold, and pest control in your area.
Client Needs: Talk to your existing clients and ask if they would value additional services. Use surveys or feedback forms to gather insights.
Competitor Analysis: Investigate what services your competitors offer and identify gaps in the market you can fill.
Pricing Strategy: Determine competitive pricing for the new services. Ensure that your rates cover the costs and reflect the value you provide.
Forming strategic partnerships with other professionals in related fields can be beneficial. For instance, collaborating with a reputable pest control company can provide immediate expertise and credibility while you develop additional in-house capabilities.
Networking: Attend industry events, join professional associations, and engage with local businesses.
Referral Programs: Establish mutual referral programs where you recommend each other’s services, enhancing both parties’ business prospects.
Communicate new services to your clients and prospects.
Website Update: Ensure your website clearly outlines the new services, including detailed descriptions and benefits.
Digital Marketing: Utilize social media, email newsletters, and online advertising to announce your expanded offerings.
Client Education: Create blog posts, videos, and informational guides that educate clients on the importance of septic, mold, and pest inspections.
The home inspection industry is evolving, and staying updated on best practices, regulations, and trends is essential.
Professional Development: Regularly attend workshops, webinars, and courses to stay informed and maintain certifications.
Feedback Loop: Encourage and analyze client feedback to improve service delivery continually.
Innovation: Stay open to adopting new technologies and methods that can enhance your efficiency and your service quality.
Expanding your home inspection business to include additional services like septic, mold, and pest control can provide substantial benefits, from increased revenue to enhanced client satisfaction. However, it’s imperative to ensure you have the necessary skills, resources, and strategic planning in place. By carefully assessing your capabilities, conducting thorough market research, forming strategic partnerships, and continuously learning, you can successfully broaden your service offerings and position your business for long-term growth and success. And don’t forget to choose an inspection software that enables you to customize templates to perform various inspections.
Embark on this journey with confidence, knowing that a wellrounded and thoughtfully expanded service portfolio can set you apart in the competitive home inspection landscape. WRE
by Kendra Budd, Editor
H ome inspectors have long repeated a familiar refrain: “We can’t see through walls.” But if a recent $6.4 million lawsuit is any indication, they may need to add: “And we can’t inspect your neighbor’s property, either.”
That’s the core issue at the center of a developing lawsuit in Greenwich, Connecticut, where a homeowner is suing his inspector for allegedly failing to identify deteriorating powerlines—located not on the subject property, but on an adjacent parcel. According to the Complaint, the off-site powerlines provide electricity to the inspected home and have led to repeated power outages, costly repairs, and a potential six-figure solution to reroute the power entirely.
So far, the case has raised eyebrows among legal experts and home inspectors alike, with many watching closely to see whether the court entertains a homeowner’s claim that the inspector should’ve identified hazards outside the scope—and property lines—of a standard home inspection.
Here’s what we know so far.
Background
In 2023, Dominick Colabella (the buyer) learned that a 7.3-acre estate, including a 13,801-square-foot home complete with five bedrooms and 10 bathrooms was available for acquisition on the New York-Connecticut border. The property was inspected by Michael Colavecchio in February 2023, the manager of Cronus Home Inspection. Colavecchio was specifically requested by Colabella to create a detailed inspection report. This was so Colabella could consider whether he would need to negotiate the terms of acquisition or if he wanted to buy the property at all.
In fact, this wasn’t the first time Colavecchio had inspected a property for Colabella. According to court documents, Colabella had hired Cronus Home Inspection prior to 2023 to perform home inspection services on a different residential property. Colabella had supposedly been tremendously satisfied with Colavecchio’s knowledge of the area while performing the first home inspection. This led Colabella to “[develop] a level of comfort with and reliance on [Cronus Home Inspection]” said the court filing. Additionally, given their “special relationship”, as the
Complaint suggests, Colabella assumed the home inspector’s efforts would be even greater than before:
Colabella, reasonably believed that by hiring the Defendants they would go above and beyond expectations, but certainly would at least meet expectations by inspecting entire properties, and would be able to identify and make Colabella aware of any potential threats to a property as they had done previously.
So, what was it that this home inspector allegedly missed on the property and turned a once prosperous relationship sour? Well, Colavecchio stands accused of not inspecting the property’s boundary line.
Indeed, in the Complaint, filed May 28th, 2025 in a U.S. District Court, of White Plains, it is alleged that Cronus knew what Colabella’s expectations were regarding home inspection—specifically that he expected Colavecchio to “identify any potential hazards or impacts from adjoining properties.”
Shortly after acquiring the property, Colabella discovered that the house would consistently lose power on multiple occasions at seemingly random times. The cause of these outages was soon discovered to be powerlines on the adjacent property that had become damaged due to a tree falling.
Colabella soon realized that the electrical power was completely dependent on the existence and functionality of these powerlines—and due to them being located on private property, he had no control of their conditions. According to Colabella, the powerlines were running through a “heavily forested” area and not only were these powerline service poles old, but they were also allegedly rotting. Furthermore, the powerlines were often prone to damage due to inclement weather.
Due to the repeated damage to the powerlines, Colabella’s lawyers are asserting that he has “incurred damages in the
amount of at least $300,000 due to repairs” and will continue to incur costs imposed by the utility provider. In fact, Colabella is heavily considering taking out the powerlines altogether to run them underground to prevent further damage—which would ultimately require a hefty fee.
Colabella believes Cronus Home Inspection and Colavecchio should shoulder the burden for the cost of repairs because he was allegedly reassured by Colavecchio that he would inspect the adjacent properties as “any reasonable home inspector would.”
It’s important to note that nothing in the home inspection report outlined that Colavecchio agreed to inspect the surrounding properties, nor that he had done so during the inspection. In his report to Colabella, it reads:
The electrical systems appear to be in good overall condition. The size of the electrical service is sufficient for a house of this size and configuration. The electrical panels are well arranged and all breakers appear properly sized. Ground fault circuit interrupter (GFCI) and arc fault circuit interrupter devices have been installed in some areas and most tested properly. GFCI and arc fault devices offer an extra level of shock and fire protection. A large propane-fired emergency generator on the left exterior supplies backup power to the house.
The report goes on to indicate that Colavecchio also inspected the size of the electrical service main and service entrance wires and meter, as well as the electrical systems. He never once notes that he inspected the adjacent property’s powerlines.
However, Colabella’s legal team is digging in on a creative loophole—that the inspector hadn’t included “source of electrical power to the Premises” in the Limitations of Electrical System Inspection included in the inspection report either. Colavecchio’s Limitation of Electrical System Inspection reads as follows:
The inspection does not include electrical code compliance, emergency generators, low voltage systems, telephone wiring, intercoms, alarm systems, TV cable, home automation, audio/video systems, networks, computers, timers or smoke/carbon monoxide detectors. The inspection of the electrical system was limited by, but not restricted to:
• Electrical components concealed behind finished surfaces could not be inspected.
• Only a representative sampling of outlets and light fixtures were tested.
• Furniture and/or storage can resist access to some electrical components.
• Insulation and HVAC equipment/ducting and stored items limited the inspection of some electrical components.
• Emergency backup generators and associated equipment are not tested or evaluated.
The document, not excluding an inspection on the source of electrical power, has seemingly become Colabella’s legal team’s main sticking point, as well as the allegation that Colavecchio said he would do so. Whether or not the latter is true, Colabella is adamant this could have been avoided if Colavecchio had inspected the adjacent properties for such deficiencies. Well, Cronus Home Inspection and Colavecchio don’t agree with Colabella’s accusations.
Cronus Home Inspection’s Response
Colavecchio as well as Cronus Home Inspection have remained quiet on this lawsuit, however they did file a Motion to Dismiss the case on July 7th, 2025. The Motion argues that Colabella has no legal standing to sue the company as the lawsuit lacks sufficient evidence. Cited in the Motion, Brown v. Daikin Am Inc., states “A complaint must be dismissed if it does not plead enough facts to state a claim to relief that is plausible on its face.” The Motion also refers to several other lawsuits that ascertain a case should be dismissed if it is lacking adequate evidence that the Plaintiff was negligent.
According to New York law (where the case is being tried), to successfully state a claim for gross negligence a plaintiff must allege the following four factors:
1. the existence of a duty;
2. a breach of that duty;
3. injury as a result thereof;
4. and conduct that evinces a reckless disregard of the rights of others or smacks of intentional wrongdoing.
The Defendant’s lawyers are asserting that Colabella’s accusations of negligence do not fit this definition. “Nowhere in the Complaint does Plaintiff point to evidence suggesting that Defendant’s conduct in omitting the electrical issues at the home from his report was intentional,” read the Motion. It continues to point out how the claims that were “so careless as to show complete disregard for the rights and safety of others,” are completely unfounded due to this lack of evidence—thus not fitting under the fourth definition of gross negligence.
Furthermore, Cronus Home Inspection’s legal team pointed out how Colabella neglected to attach the full Inspection Agreement to the original Complaint. They allege that a court would not be able to properly consider the accuracy of the Complaint without a copy of the agreement. So, the Defendants not only attached the Inspection Agreement to their Motion, but the entire Home Inspection Report as well. page 22 8
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In the Motion to Dismiss, the Defendant’s included passages from the Inspection Agreement that outlines what was and wasn’t covered. “Cronus, LLC will be conducting a non-invasive, visual inspection of the apparent condition of the visible, major components of the property,” stated the agreement. Additionally, the Inspection Agreement also included a clause titled “WHAT IS NOT INCLUDED” wherein both parties agreed upon:
This inspection will be of readily accessible areas of the building and is limited to visual observations of apparent conditions existing at the time of the inspection only. Latent and concealed defects and deficiencies are excluded from the inspection and report. The Inspector is not required to move objects obstructing his or her view or access.
With both parties agreeing on this, Colavecchio’s lawyers argue that Colabella has failed to adequately plead a viable claim of gross negligence and has not presented any facts to support the accusation that Colavecchio violated the agreement. Additionally, the Motion maintains that even if Colabella’s accusations asserting Colavecchio failed to inspect the potential hazards from adjoining properties, that “this was simply not something that he was expected or required to do under the Inspection Agreement or any pertinent State regulations.” In other words, an inspector is not required to inspect adjoining properties.
In fact, it “would be unfeasible, contrary to longstanding precedent and relevant regulations, and State criminal law to require a home inspector to trespass onto adjoining private residential property as part of a routine home inspection,” the Motion clearly states.
They also allege in the Motion that Colabella does not provide enough proof in the Complaint of the Inspection Agreement to sustain a breach of Fiduciary Duty against their client—specifically in regards to their relationship. Despite his assertions, Colabella does not provide any evidence of a “special relationship” between himself and Colavecchio. It is required under Murphy v. Kuhn, “A fiduciary duty does not exist absent a special relationship,” as cited in the document.
Due to Colabella’s lack of evidence, the Defendants are requesting that “the Court grant this Motion and dismiss the Complaint with prejudice.” Currently, the Motion remains in limbo.
While the outcome of this case remains uncertain, it underscores a growing trend: homeowners and attorneys looking for any angle—however novel—to hold inspectors liable. Whether or not Cronus’ agreement withstands legal scrutiny, the case is a sharp reminder that a well-drafted, comprehensive inspection agreement is one of the most powerful tools an inspector has to manage liability.
It’s not often that homeowners expect their inspector to assess adjacent parcels, but this lawsuit raises new questions about the evolving expectations—and potential liabilities—of the profession. Cronus Home Inspection and Colavecchio have submitted a Motion to Dismiss, and as of this writing, a decision from the court is still pending. If the Motion is denied, the case is expected to proceed sometime next year.
Inspectors should ensure their agreements clearly define the scope of the inspection, the limitations, and what is excluded—including any mention of adjoining properties or utility sources. As always, the goal is to prevent these types of claims from gaining traction in the first place.
Even with a signed inspection agreement, inspectors should be aware that homeowners and attorneys may still attempt to find creative ways to assign blame. That’s why it’s critical that your pre-inspection agreement is clear, specific, and legally robust. Whether Cronus Home Inspection’s agreement will hold up remains to be seen—but it serves as a reminder for all inspectors to regularly review and strengthen their contracts.
For practical guidance and vetted templates, visit WorkingRE.com and search “Inspection Agreement”.
This is a developing case—stay tuned for updates. WRE
by Kendra Budd, Editor
W
hen you ask home inspectors why they got started in this business, a significant portion of them will answer that at least one of their parents was/is a home inspector. The same can be said for Justin Blick, whose father, Maurie Blick, began home inspecting in 2004, inspiring him to take up the mantle as well. Now the two operate and manage a flourishing HomeTeam inspection service in Topeka, Kansas.
Together, they offer a compelling story of intergenerational success and growth within the home inspection industry, building a strong reputation as they go. But how did they accomplish such a feat? The two started off in electrical construction and now lead a reputable and successful team.
Working RE Home Inspector magazine sat down with both Maurie and Justin to find out exactly how their business model works, and what makes it thrive. Here’s what we learned.
Working RE Home Inspector: Tell us a little bit about yourselves. What’s your story and how did you get started in the home inspection industry?
Maurie: Well, I have a background in construction, and I operated an electrical contracting business for about 25 years. The business kind of went off the rails at a point in time, and we were looking for another opportunity. I had a friend that got involved in a franchise business.
He was just sky-high about his experience working within a franchise system, and that’s what really got my attention. So, when I was out looking for inspiration and new opportunities, the home inspection franchise opportunity was a good fit.
Justin: As far back as I can remember, I was tooled up and helping in the field. [Maurie] was great about including me, getting me involved with the business. He was a single father, raising sons, and doing his best. I have a lot of admiration for him. Of course, that is natural for a son to his father, but I see a lot of similarities in him and I.
and [had a] pretty successful run in the electrical construction business, dabbling a little bit in my own company. When Maurie got started in HomeTeam, it certainly caught my attention. I thought it sounded very intriguing and interesting. As he built up and started to grow, he needed some help. So, who better than your son if he’s got an interest? And I did, so he brought me in, and it’s taken off since.
Working RE Home Inspector: How did you get involved with HomeTeam? What started that part of your journey?
Maurie: I got involved with HomeTeam after they had already been up and running for about 12 years. In the process of my investigation into an opportunity, I looked at several different inspection franchise companies and HomeTeam really appealed to me because I thought their team approach to inspections was really unique. It seemed like using a team approach provided a better product. I ended up liking the guys that I met in Cincinnati and their approach. So, I selected HomeTeam back in 2004 and I think I made the right choice.
Justin: What Maurie left out was the hard times. You know, when he started out, as you might with any small business— you got to ramp up. You have to get started. There were quite a few years in the beginning that he hit the grindstone and got it done. Now we’re absolutely thriving, 100 percent.
Working RE Home Inspector: What has been your approach to making your franchise successful?
Maurie: In our case, I think we have worked really hard and have been very diligent about creating a better product in our market. We’ve competed on professionalism, producing an exceptional report, and engaging with the local real estate community with a service that goes above and beyond expectations.
I followed in his footsteps, did work in the family electrical construction business for a while, but of course, branched off from there when it closed. I went on to get my electrical license page 26 8
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I really think that was our primary focus. Of course, you have to market. In those early years, you just have to go out and “gladhand” people and promote the company. Once you get a start, I do think that the key to success is to produce a better product and compete out in the field professionally.
Working RE Home Inspector: What is it that makes HomeTeam Inspection Service different? Could you tell us a bit about your business model?
Maurie: Well, here in Topeka, I compete against quite a few other home inspection companies. One big advantage we’ve got is my affiliation with a corporate partner. My corporate partner provides me with all the legal framework I need to keep everybody safe. They also provide us with marketing and with all kinds of operational guidance every step of the way. I feel like, had I gone into the home inspection business without the benefits of a corporate partner, and all that comes with it, I probably wouldn’t be nearly as dominant in my market as we are.
Justin: This comes firsthand from a lot of the Realtors that we work with and why they enjoy working with us. Our background in construction gives us an advantage. Today, you’ll find a home inspector that went to trade school, took a course and tooled up and he’s ready to do a home inspection, which is good and fine. I’m sure many of those guys are perfectly fine inspectors. But what the Realtors appreciate is the experience that we have in construction and the fact that we’re still licensed electricians is incredibly attractive in the scope of a home inspection.
Working RE Home Inspector: As home inspectors with that extra background in electrical construction, would you advise other home inspectors to broaden their horizons to increase their marketability?
Maurie: I think people going into the home inspection business, that have a working knowledge of the residential construction industry, come in with an advantage. However, it’s certainly not a requirement, it just presents a longer, steeper learning curve.
Working RE Home Inspector: Tell me a little bit about how you go about each appointment with your clients. Do you two operate under a specific structure or does your work cater to the specific client?
Maurie: Well, our corporate partner provides us with a complete software package. So, a lot of our correspondence and communication with our Realtors and clients is done
“I feel like, had I gone into the home inspection business without the benefits of a corporate partner, and all that comes with it, I probably wouldn’t be nearly as dominant in my market as we are.”
automatically. We have notifications that go out about our order and information for our clients so they’re regularly informed. Communication is absolutely critical.
Justin: Our day-to-day operations out in the field are actually very consistent with every inspection. Arriving at a certain time, completing our task in a set amount of time, with the anticipation of meeting the potential buyer or client at the end to have a discussion. Where the challenge comes in is you’ll have very different clients every day—first-time homebuyers, seasoned homebuyers that have been through it a million times, very prickly particular buyers, buyers that are on the move and have no idea what you’re saying. Then, of course, each house is very different. So there lies the challenge—finding the defects specific to that particular property. It’s very repetitive with a lot of variance on a day-to-day basis.
Working RE Home Inspector: How does your relationship as Father-Son affect your working relationship?
Justin: Well, our working relationship started a long time ago, long before the home inspection business. I’d actually come into the electrical contracting business right out of high school. I can’t imagine the challenge that it was for [Maurie] having a teenage son in the electrical field, I couldn’t imagine, because… teenagers, right? But I got to see the business up close. He operated that electrical business for 20 years.
When [Maurie] started this venture, I had no doubt that it would be successful. So, in terms of our relationship, it has always been solid. I’d say being in the home inspection business certainly brought us closer together. You know, we’ve got to meet, we’ve got to talk. There are things that come up, but certainly for the best, I’d say. Today at 50 and Maurie being 74, we’re closer than ever.
Maurie: For all these years, I’ve always had a family-run business. And I think from the very early days, there was always the idea in the back of my mind that this could really be something in which all of my children would be able to work—that there might be a family legacy.
All three of my sons worked with the HomeTeam for several years, but my oldest son and my youngest son tried it and when
it wasn’t a good fit for them, they pursued other opportunities, which was really disappointing for me. One thing that I think is important, is that when you’re working with family, you don’t put a lot of pressure on them, to meet your expectations for them.
The home inspection business appeals to some people, but it doesn’t appeal to everybody. It was a good fit for Justin from the beginning and he was very natural at it, and enthusiastic about the opportunity. So, it all unfolded the way it should. I’m just really glad that one of my boys found a good fit here and decided to really make a commitment. Now we’re at a point where we’re working out the plan to transition the business from one generation to the next. It’s really gratifying.
Working RE Home Inspector: Do either of you have any advice you would want to give other home inspectors who are contemplating joining a home inspection business?
Maurie: I would tell people that are looking for an opportunity that there are several schools around that can provide the basic training necessary to become a home inspector. Based on my own experience, I would encourage prospective home inspectors to consider going the franchise route.
I would also tell people that they should be comfortable with going out and meeting people and promoting themselves in a public setting, because it’s almost impossible to get [started] without being willing to put yourself out in front of people and introduce yourself. I would also strongly recommend that anybody thinking of trying to open up a home inspection business from dead-stop-zero should probably have a separate income stream for a couple of years to supplement them during the start-up period. It’s daunting. It really takes quite a while just to get the first couple of Realtors to say, “Yes.” And it really does take tremendous effort over a period of time to establish yourself. Once you have an ongoing, successful and well-established business, then you can bring in an additional inspector. Then you get to start all over with the new guy and build his reputation.
Justin: Be prepared to work. You’re going to have to earn it. It is hard work, but also incredibly gratifying. To be able to go out and meet with somebody on what is one of the most important days of their life, the biggest investment they’ll ever make, when they’re looking to you for advice on whether it’s a good purchase or not. There’s a lot of satisfaction that comes with that too.
Working RE Home Inspector: Is there anything you wish you had known before you started a career in home inspection?
Maurie: In the course of going out and doing hundreds of home inspections in a year, it didn’t occur to me that there were going to be unhappy customers. Customers that moved into their house and discovered an unreported issue or condition in their home that was going to end up costing them money. That’s the difficult part of my business. If you’re not willing to deal with an unhappy client from time to time, and meet with them and go through the process of trying to help them resolve an issue that’s come up with their home, then this isn’t for you.
Justin: Be prepared. Whether it’s an inspector error, a defect that was concealed by the home seller or an item that was concealed and undetectable... stress is elevated. You have to have the right demeanor when approaching that situation, because it can be incredibly volatile. Maurie set a good example for the rest of us.
Maurie: Complaints and callbacks are difficult, but it is often an opportunity to establish a reputation for integrity within the real estate community. Reputation is the key to the whole game. WRE
offers its Members FREE, Attorney-Prepared Inspection Contract templates, plus an Indemnification Agreement to use with your subcontractors and Specific Service Waivers if you offer mold and your client declines it (for example).
by Isaac Peck, Publisher
H
ome inspection is a balancing act of thoroughness and practicality, where inspectors must navigate the fine line between identifying critical issues and avoiding catastrophizing, all while managing both risks and client expectations. Risk management is an indispensable part of that work. Here at Working RE Home Inspector, we’ve talked a lot about the importance of a well-drafted pre-inspection agreement. It’s not just a professional formality, but an essential risk mitigation tool. From defining the scope of services to clarifying client expectations, such agreements protect the home inspector by limiting liability and outlining clear terms for dispute resolution.
Nothing about the protections offered by these agreements is foolproof. Clients might complain or even initiate legal action anyway. That’s where an Attorney’s Fees clause comes in. It’s an essential shield for when everything else in the agreement fails to do its job or protect you from clients who insist on taking their complaint with you to court (or arbitration).
Imagine a few scenarios:
Scenario 1: A homebuyer sues the inspector over alleged mold damage, despite clear disclaimers and no evidence. The court dismisses the case. Without an Attorney’s Fees clause, the inspector is still out $15,000 in legal fees, even though they fended off the buyer’s attack. But with a “loser pays” clause, the buyer will be expected to cover the $15,000.
Scenario 2: A buyer discovers a hidden plumbing issue after the inspection and sues the inspector, citing the inspector’s advertising tagline “We ensure your peace of mind.” The inspector proves the defect was inaccessible and the tagline was not a warranty, effectively getting the
Isaac Peck is the Publisher of Working RE magazine and the Senior Broker and President of OREP.org, a leading provider of E&O insurance for savvy professionals in 50 states and DC. Over 14,000 professionals trust OREP for their E&O and liability insurance. Isaac received his master’s degree in accounting at San Diego State University. Reach Isaac at isaac@orep.org or (888) 347-5273. CA License #4116465.
case dismissed. Without the clause, this litigation costs the victorious inspector $20,000 in legal fees. With the clause, the losing party pays the fees.
Scenario 3: A homeowner blames the inspector for a foundation crack that appeared months after the inspection. Expert testimony proves it was not visible or foreseeable, but said expert testimony costs a lot of money. Without an Attorney’s Fees clause, the inspector is out $25,000 in defense costs. Under the clause, the losing plaintiff pays those costs—avoiding financial strain for the inspector and/or a huge hit on their E&O insurance.
Among the various clauses found in inspection agreements, two stand out as essential pillars of protection: the Limitation of Liability clause and the Attorney’s Fees clause. While the former caps the inspector’s financial exposure, the latter is what truly deters baseless litigation and ensures fairness in legal disputes. In practice, the Attorney’s Fees clause becomes the gut-check that filters genuine complaints from opportunistic legal threats.
Identifying the scope of work of your home inspection, as well as which Standards of Practice (SOP) you are adhering to, are hugely important. One way in which you can do so, is by exploring binding arbitration and mediation clauses, a clause limiting the statute of limitations for actions on the inspection to 12 months, and provisions to limit your liability. Then, there’s also provisions to limit the scope of what services are expected, as well as providing a 10-day written notice provision mandating that clients have 10 days to report post-inspection concerns (Visit WorkingRE.com, and search Key Clauses You Need in Your Pre-Inspection Agreement to learn more). However, it’s important to remember the “loser pays” Attorney’s Fees provision is one of the most important (and aggressive) clauses that you should include in your pre-inspection agreement. This clause says that if you and your client end up in litigation, the prevailing party is entitled to their attorney’s fees.
At its core, the Attorney’s Fees clause ensures that in any arbitration or legal action where the inspector is found to be
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without fault, the client agrees to reimburse all legal costs incurred in the inspector’s defense.
This clause serves several critical functions:
First, it saves the inspector potentially tens of thousands of dollars in litigation costs even when they win. Hourly rates for real estate litigation attorneys can range from $200 to $600 per hour, or even higher. A “normal” civil lawsuit involving discovery, motions, and pretrial preparation could involve attorney fees between $15,000 and $30,000 and potentially exceeding $30,000 if the plaintiffs are really digging in. That’s even before it goes to trial!
Factors leading to these high fees include the complexity of litigation, a demand for detailed investigations, even expert witness testimony (engineers, contractors, etc.), and complex legal arguments about negligence, breach of contract, or misrepresentation. Such cases may require discovery (requests for documents, depositions, etc.), which can be a major expense. Finally, in many jurisdictions, the “American Rule” is applied to attorney fee rules: each party pays their own attorney’s fees, regardless of who wins the case.
Even when inspectors successfully defend themselves in court, the cost of doing so can be devastating. Without an Attorney’s Fees clause, prevailing in a legal dispute can still result in substantial out-of-pocket legal expenses. Inspectors may spend thousands proving their innocence, only to receive no reimbursement. The clause corrects this imbalance, ensuring that inspectors are not financially punished for baseless claims.
Second, the clause is a deterrent to litigation. In today’s litigation-heavy climate, even minor inspection disputes can spiral into costly legal showdowns. While most clients act in good faith, some are plaintiffs-in-waiting, or they get bad advice from friends or family members and start leveraging legal threats to pressure insurance carriers or the inspectors themselves into quick settlements. Ambulance-chasing plaintiff attorneys are fond of making obscene demands and filing lawsuits in an effort to force an insurance carrier into a settlement. The Attorney’s Fees clause acts as a firebreak. Knowing they may be liable for legal fees if they lose, clients will think twice about initiating frivolous claims.
Third, an Attorney’s Fees clause clarifies legal responsibilities and expectations. Not all legal disputes are dramatic lawsuits: some might arise over misunderstandings about the scope of an inspector’s work, or other minor conflicts and misunderstandings. In those situations, the Attorney’s Fees clause sets clear expectations: if legal action is necessary and the inspector is vindicated, reimbursement will follow. Rather than being a threat
to the client, this kind of transparency fosters mutual accountability and reduces the chance of confusion breeding conflict.
Fourth, an Attorney’s Fees clause discourages cases where the home inspector is pulled into catch-all lawsuits, where a buyer sues everyone involved in a transaction: the buyer’s agent, the seller’s agent, the seller, the home inspector, and so on. With this clause, the buyer may carefully consider whether to include the home inspector in these catch-all lawsuits, especially without having a discussion first.
Finally, the Attorney’s Fees clause gives an inspector leverage in court proceedings, the arbitration process, negotiations, and other legal proceedings. It’s especially helpful during settlement negotiations, when parties are trying to figure out the least risky way to dispose of a case. An inspector-defendant can point out that the chances of an outright win for the plaintiff are not certain, or even a long shot, and that the price of losing will be more than just the plaintiff’s pride.
When it comes to agreements, most clients are easy to work with, but there are always going to be exceptions: clients who find what they perceive to be problems and then get “trigger-happy” with the idea of bringing claims against you.
OREP recognizes that most inspectors are experts in properties, not in legalese. That’s why every OREP Member receives access to attorney-prepared pre-inspection agreements that incorporate protective clauses like the Attorney’s Fees provision. These documents are reviewed by legal professionals and tailored to the inspection industry’s specific risks. OREP equips Members with agreements so they never start from scratch. They’re shielded by language that anticipates real-world scenarios and provides a legal framework for resolution.
The Attorney’s Fees clause is not an afterthought. It’s a strategic safeguard, and not only that, it sets the tone for the entire transaction, creating a fair playing field and discouraging predatory claims. An Attorney’s Fees clause reinforces professional boundaries while ensuring inspectors aren’t financially ruined by baseless allegations. In tandem with the Limitation of Liability clause and other important provisions, it becomes a robust insurance policy against legal risk.
While the limitation of liability is not enforceable in at least four or five states nationwide, we are not aware of a state that rejects the Attorney’s Fees clause on its face. Reputation and liability are everything to a home inspector, and those are constantly on the line. Inspectors need the shield of pre-inspection legal understandings. The Attorney’s Fees clause is one of its sharpest edges on that shield. Stay safe out there! WRE
by Jamie Coupaud, SimpleLab
T he 1960s rambler looked perfect on the outside: a five-yearold roof, clean exterior paint, and a well-maintained lawn. The inside was just as clean and show-worthy. But as soon as the inspector entered the soon-to-be nursery, a faint odor prompted him to dig deeper.
You see, when the call came in for this inspection, the buyers—a young couple and their two small children—expressed concern about the age of the house and potential allergens. Their toddler had recently been diagnosed with a wide range of environmental allergies, and in a hot housing market, they were forced to reconcile budget and health. Armed with this background knowledge, the inspector understood that not all allergen-related hazards are straightforward and obvious.
Trusting instinct, he gathered samples from the room’s surfaces. Days later, the verdict came back: elevated levels of Felis domesticus, or cat allergen, concentrated in the nursery. The listing had claimed that the home was “pet-free,” but the wallto-wall carpet and supply vents still held years of dander. Armed with data, the buyers negotiated for professional duct cleaning and a credit for new flooring before signing the papers.
Most clients expect inspectors to find leaky roofs, shaky decks, and bad wiring. But for some home buyers, what’s floating in the air or buried in the carpet is just as concerning as structural issues. Indoor allergens, tiny bits of mold, dust, and dander, can fly under the radar and easily turn a dream home purchase into a nightmare. You don’t have to be an allergist to help buyers identify these issues. You just need to know where allergens like to hide and how to talk about what you find.
A healthy house sells faster and at a better price. If a buyer’s toddler starts coughing during the walkthrough, you can bet they’ll remember. By pointing out conditions that allow allergens to thrive, such as damp basements, old filters, or
Jamie Coupaud heads Media Communications at SimpleLab, a leading platform for professional laboratory testing. From producing an online water quality course to creating social media content, she has educated consumers and professionals on the ins and outs of environmental testing since 2021.
signs of pests, you add real value to the inspection and overall home-buying experience.
Here are some common indoor allergens that you should keep on your radar:
1. Mold Spores thrive in damp spots: behind drywall, under sinks, around window sills.
2. Dust Mites love warm, soft spaces like mattresses, carpets, and even stuffed toys.
3. Pet Dander are tiny skin flakes from cats and dogs that cling to fabric and ducts.
4. Cockroach Droppings and body parts that collect in kitchens and crawlspaces.
5. Pollen brought indoors by sticking to clothing and coming through open windows. These particles settle on shelves and window ledges.
Any of these can cause itchy eyes, wheezing, or worse for sensitive occupants.
Allergens themselves are microscopic, but the conditions that create them can be visible. Visual red flags may include condensation on windows, water stains on ceilings, pest droppings, or peeling paint. These are all signs of excess moisture that make a home accommodating to mold growth. Musty or ammonia-like odors can indicate hidden mold or pest problems.
Use your usual tools: moisture meters, infrared cameras, as well as your own eyes and nose. Note anything that looks or smells off.
Clients appreciate quick wins. Offer these tips when a sale is on the line or when advising new homeowners.
“Your eyes, nose, and instruments may be enough to sense a problem, but if your clients want certainty, sending samples to a lab is the best way to accurately identify the culprit.”
1. Run exhaust fans in bathrooms and kitchens for at least 20 minutes after use.
2. Keep humidity between 30-50 percent with dehumidifiers or increased ventilation.
3. Change the home’s HVAC filters every 60-90 days (more often with pets).
4. Seal gaps that let pests in, and check crawl spaces, basements, and attics, as they are often overlooked spaces where critters live.
5. Vacuum with a HEPA filter and wash bedding in hot water weekly.
These suggestions turn a problem report into an action plan.
Your eyes, nose, and instruments may be enough to sense a problem, but if your clients want certainty, sending samples to a lab is the best way to accurately identify the culprit. Especially in cases where you see a mold-like substance or evidence of excess moisture, your buyers will likely want more certainty.
In those instances, explain that air or surface samples can confirm what’s growing and how severe the issue might be. Providing test kits for these cases is a service that will set you apart from other inspectors. Some lab testing companies will allow you to keep test kits on-hand and directly provide them to clients. If you choose not to provide test kits, you can point your clients to a qualified testing service if they’re interested.
When it comes to communicating potential allergen risks in your inspection report, it’s important to use everyday words that your clients know and understand so they can quickly assess the risk and make informed decisions moving forward. Lead with what you measured or observed and use factual readings, such as lab results, if available. Avoid alarmist interpretations of the situations and do not offer medical advice. The next practical steps if allergens are detected could include improving ventilation, consulting a certified remediator, or replacing carpet. All these steps offer clients a reasonable course of action, rather than adding to fear or diagnosing medical conditions.
Make sure you document your methods. One short line such as “samples collected with sterile swabs; chain of custody maintained,” shows professionalism and increases client confidence.
Lastly, closing on a positive note to remind buyers that most allergen problems are fixable can help keep deals moving forward.
Before you leave the property, run through this mental list:
• Smell test: any musty or chemical odors?
• Moisture check: are there elevated readings in bathrooms, basements, or attics?
• Ventilation: are exhaust fans working, are there clean filters, clear dryer vent?
• Visual sweep: are there stains, peeling paint, fuzzy growth, signs of pests on the property?
• HVAC: how is the filter condition? Any dust on vents, drip pan leaks?
If one or more boxes are checked, mention allergen risks in your summary.
Indoor allergens can be just as detrimental to a home purchase as a cracked foundation if they lead to long-term health issues for occupants. By watching for moisture, ventilation, and cleanliness issues, you help clients avoid costly surprises. That’s good for their health and your reputation. So next time you walk through a front door, pay attention to those subtle and often hidden signs of allergens. A few extra minutes of attention can help your clients breathe easier and send more referrals your way. WRE
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by Henry Sander, Heartland Home Inspection
I n the real estate world, the term “As-Is” is often used to describe a property that’s being sold in its current condition, with the seller unwilling to make any repairs or offer warranties. Many buyers interpret this as a warning to expect problems and might assume there’s no point in getting a home inspection because the seller won’t fix anything. However, this couldn’t be further from the truth. Buying an “As-Is” property makes a professional home inspection more important than ever, and here’s why:
When a seller lists a property as “As-Is,” they are saying they won’t be responsible for making repairs or improvements before the sale. It doesn’t mean the seller is hiding anything intentionally, but it does mean the buyer is taking on more responsibility for the condition of the home.
However, “As-Is” doesn’t free the seller from legal obligations. Sellers are still required to disclose any known issues, but there could be unnoticed or undisclosed problems that could significantly affect the buyer’s decision. A home inspection helps you understand exactly what you’re getting into, beyond what the seller knows or discloses. Finding an unnoticed, unknown issue does not mean non-negotiable.
Even in an “As-Is” sale, a home inspection is crucial because it uncovers potential problems that aren’t immediately visible. The property could have major defects in areas like:
• Roofing: Leaks, missing shingles, or poor drainage.
• Electrical Systems: Faulty wiring or outdated systems that could be a fire hazard.
• Plumbing: Hidden leaks, clogged drains, or aging pipes that could lead to costly repairs.
Henry “Hank” Sander is the owner of Heartland Home Inspections and founder of Heartland Education & Training Group. A licensed inspector since 2013, he holds licenses in more than six states. Sander has personally trained over 3,000 students nationwide. He is an ASHI Certified Inspector, InterNACHI Certified Master Inspector (CMI), and an active member of multiple state & national industry organizations, hosts a radio
and operates
• Structural Problems: Foundation cracks or framing issues that compromise the stability of the home.
Without a professional inspection, you risk buying a property with significant defects that can cost thousands of dollars to repair.
Even if the seller refuses to make repairs, a detailed home inspection report gives the buyer more negotiation leverage. Armed with knowledge of the property’s condition, you might be able to:
• Negotiate a lower sale price to compensate for the repairs you’ll need to make.
• Request closing cost credits to offset repairs.
• Reconsider the deal entirely if the inspection uncovers serious safety or structural concerns.
Having this information gives the buyer the power to make an informed decision, whether you’re prepared to accept the property “as-is” or walk away.
Knowing the condition of the property through a home inspection helps you plan for future repairs and maintenance. An inspector’s report provides a roadmap for what needs immediate attention versus what can be addressed over time. This helps buyers’ budget and prioritize repairs after the purchase.
For example, if the roof is nearing the end of its lifespan, the buyer can prepare financially to replace it within the next few months or years, avoiding unexpected costs down the line.
A home is often the largest investment people make. By skipping an inspection, you risk purchasing a property with unforeseen problems that could lead to expensive repairs and a lower resale value. A home inspection allows you to protect your investment
by ensuring you understand the true condition of the property and the financial commitment you’re making.
The peace of mind that comes from a home inspection is invaluable. Buying an “As-Is” property may seem daunting, but knowing the exact condition of the home allows you to move forward with confidence. Whether you decide to proceed with the purchase or back out, a thorough inspection ensures you’re making the decision with a clear understanding of the home’s condition.
An “As-Is” sale doesn’t mean the buyer should forgo a home inspection. In fact, it’s even more critical to invest in a professional home inspection when purchasing an “As-Is” property. It uncovers hidden issues, gives you negotiation power, helps plan for future repairs, and ultimately protects your investment.
Whether you’re looking to save money or make an informed decision, a home inspection is an essential step you shouldn’t skip, even when buying an “As-Is” property.
Here’s a conversational example of how a home inspector can explain the importance of a home inspection for an “As-Is”
property in a non-threatening, professional, and friendly manner during a phone call:
Home Inspector: “Hi [Client’s Name], thanks for reaching out! I understand you’re interested in getting an inspection done on a property that’s being sold ‘As-Is’. That’s actually a very common situation, and I want to make sure you’re fully informed about why an inspection is still incredibly valuable in this case. Do you mind if I explain a little?”
Client: “Sure, but I thought since it’s being sold ‘As-Is’, there’s no point, right? The seller isn’t going to fix anything.”
Home Inspector: “That’s a great question, and I hear it often. While it’s true that in an ‘As-Is’ sale, the seller likely won’t make any repairs, the real benefit of an inspection is for you. Let me put it this way: An inspection helps you get a clear picture of the home’s condition, so there are no surprises after you’ve closed the deal. Even though the seller isn’t fixing things, knowing what potential issues exist gives you a lot more power.”
Client: “But what would I do with that information if the seller won’t fix anything?”
Home Inspector: “Well, with a detailed inspection report, you could still negotiate the price or ask for credits toward closing costs to cover any major repairs you’ll need to make down the line. For example, if we find the roof is near the end of its lifespan or the electrical system needs an update, that’s information you can use to adjust the deal.”
(Pause for a moment to let that sink in).
“Also, knowing the condition of the property gives you a chance to plan ahead. Even if you’re comfortable with the ‘As-Is’ nature of the sale, an inspection helps you prepare for future repairs, so you’re not hit with unexpected costs after you move in.”
Client: “That makes sense. So even though I might not get the seller to fix anything, I at least know what I’m getting into.”
Home Inspector: “Exactly! It’s about protecting yourself and your investment. And remember, if the inspection reveals something serious, like foundation issues or mold-like substances, you’ll have the chance to make an informed decision—whether that’s adjusting the offer or even walking away if it’s not the right fit. At the end of the day, an
inspection gives you peace of mind and a full understanding of the property, which is especially important with an ‘As-Is’ sale.”
Client: “That sounds like a smart move. I don’t want to find out about a huge problem after I’ve already bought the house.”
Home Inspector: “Exactly! I’ve seen buyers walk into ‘AsIs’ deals and feel much more confident after an inspection because they know what needs attention. I’ll go through the entire property for you—everything from the roof to the foundation, and provide you with a detailed report, so you can make the best decision for your situation.”
Client: “Alright, let’s go ahead and book it then.”
Home Inspector: “Fantastic! I’ll get you on the schedule, and give you the information to move forward with confidence.”
This approach focuses on calmly educating the client, reassuring them the inspection isn’t to pressure the seller but to empower the buyer with essential knowledge—a smart, proactive step rather than a cause for concern. WRE
by Charles Buell
Bet you didn’t know you are heating and cooling a wind tunnel!
Certainly, the biggest contributors to moisture in the attic are breakdowns in the building envelope. (Of course, I am assuming that water is not getting in from outside the envelope—like a leaking roof.) These compromises also make the building less efficient and will empty your wallet more as you attempt to heat and cool your home/tunnel.
To understand this problem, it is helpful to think of one’s house like a Tupperware container. Clearly if we leave the lid a little bit ajar (like an attic access that is not weather-stripped), or start drilling holes in the bottom, sides and top, the container will no longer do its job—or at least less efficiently—relative to the number of holes, the size of the holes and where they are located.
Of course, if the holes are so the snake (or whatever else the kid catches) does not die, that is another matter. It is still important to keep the lid on though.
There are other factors—but let’s keep it simple for today.
We can build the most super-insulated house in the world but if we don’t control air movement in and out of the building our efforts at insulating can be wasted.
One of the most common, obvious, everyday sorts of “by-passes” that I see in homes is dampers in fireplaces that are left open. These chimneys will pull conditioned air from the home 24/7, with an occasional pause for atmospheric inversions that can happen. The screen on the fireplace filling up with lint is the first clue that this is happening. Even closed dampers in most cases will not stop this movement entirely.
Eliminating open flame solid fuel appliances altogether is a good idea in the context of building more energy efficient homes.
I have heard people argue that this natural draft is a good way to exchange the air in the home—without a mechanical fan. The truth is that this works, but at much greater cost than running a simple exhaust fan periodically. It is the 24/7 aspect of the chimney that makes it a problem, as it vents conditioned air that we are also paying for. On a windy day the venting might be much more than on a still day. We need “control” over this air exchange if we are truly going to control energy use as well as maintain a healthy indoor environment.
I want to stress that this is a LOT more complicated than I am willing to address here. For example, rates of ventilation will not always guarantee good indoor air quality. While outside air is generally of better quality than indoor air, that is not always the case and in some areas of the country, outside air is becoming worse every day. At some point the political aspects of outdoor air quality will be forced to reconcile with the private aspects of indoor air quality. Some will argue that if you want “quality” drinking water you had better be prepared to solid-block-carbon-filter the water where it comes into your home. The same thing is perhaps coming for the air we are bringing into our homes.
Welcome to the 21st Century.
Back to air bypass issues.
Charles Buell is a retired Washington State Licensed Home Inspector and Structural Pest Inspector with over 18 years of inspection experience and more than three decades in residential design and construction. He served two terms on Washington’s Home Inspector Licensing Advisory Board and chaired ASHI’s National Technical Review Committee. Charles is also an instructor at Bellingham Technical College, where he helps train the next generation of home inspectors. page 40 8
As previously mentioned, the attic access hatch is a common bypass, but the list is almost endless. Here is a partial list of some common breaches: plumbing pipes running through walls and ceilings, can-lights, HVAC equipment/ductwork in attics, crawl space hatches at the interior of the home, wiring
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holes in top and bottom plates of walls, chimneys, b-vents, improper framing techniques, skylights, pull downstairs, drop ceilings, exhaust fans etc.
“Stack effect” is something else that affects our homes.
Stack effect is relative to temperature/pressure differences. It is relative to the fact that warm air is buoyant. It is further driven by the lowering of pressures inside the home which then allows for air to be pushed into the lower levels of the home (from outdoors and/or crawl spaces). The taller the home, the more pressure differential as the buoyant air moves to the exterior (attic) of the home, bringing with it the moisture in the air. The colder the outdoor environment and the taller the building the more that hot air will be trying to get into the roof structure or outdoors to get to that cold. Perhaps the perfect storm is to have a leaky floor system over a vented crawl space in conjunction with serious breaches in the attic floor.
In this scenario you can think of your poor heating system as attempting to heat a wind tunnel. You will have to be willing to throw a whole bunch of energy at this wind tunnel in order to feel comfortable in your home.
In a very well-sealed home there will be less stratification of temperatures and less “driving” of the stack effect—even when doors at the lower level are opened. Opening and closing windows on upper and lower levels in conjunction with each other is a way to manually control stack effect to change the air
in the home. This is not rocket science, but can be as expensive as rockets.
At one inspection, I encountered one of the most egregious examples of a home with a functional wind tunnel. The defect was created when part of the forced air heating system was removed. If you could zoom in on Figure 1 (page 38), you would be able to see the furnishings in the room below. There were three of these vents going into the attic. The missing insulation around the vent is not even consequential in relation to this breach.
Sealing these air bypasses, even in older inefficient homes, can drastically reduce heating and cooling costs. Remember, heat tries to get to cold and high pressure moves to areas of lower pressure. So, if the attic is really hot in the summer and we are cooling the home, we have made the job of the AC unit even more difficult. Better sealed homes account for why the size of heating and cooling systems have halved since the 40s— remember, when oil was free?
Sealing and eliminating all kinds of air bypasses is perhaps the most important thing we need to do in making our houses more energy efficient. Insulation alone will not do it and in fact in many cases will only filter the air as the air moves through it. This is especially true of fiberglass insulation— even 18 inches of it. All air bypasses must be found and sealed (or otherwise eliminated) prior to insulation. Choosing types of insulation that are in themselves good air barriers is also recommended. WRE
