Q: I don't know of any other licensed professions that are mandated to carry errors and
omissions insurance. Why were inspectors singled out?
A: The Texas Legislature voted to add this requirement to Senate Bill 914 in the final days of the 2007
session. While we cannot say why this requirement was imposed on inspectors, TREC is now charged
with enforcing the law.
Q: My inspector license expires June 30, 2008. When do I have to show proof of insurance?
A: Senate Bill 914 requires you to show proof of insurance at the time of your renewal in June 2008.
After that time, be sure to keep your policy current and keep copies of your policies, as you may need
to show proof of continuous coverage from July 2008 through June 2010 in order to renew your license
again.
Q: Can you recommend an insurance company that offers professional liability insurance for
inspectors?
A: TREC is unable to recommend insurance companies and does not maintain a list of companies that
offer professional liability insurance for inspectors. We would suggest that you contact an inspector
trade association or perhaps the company with which you have other insurance (car, home, etc.).
Q: Will TREC have an insurance "pool" for inspectors who are unable to get coverage
through a regular insurance company?
A: When the Texas legislature passed the insurance requirement, they did not create an insurance
pool for inspectors or authorize the Texas Real Estate Commission to do so. Therefore, TREC is
unable to offer coverage to inspectors.
Q: I am currently taking classes to get my inspector license but will not be finished until after
September 1, 2007. Can I file my application before I finish my coursework, or is there a way
for me to be "grandfathered"?
A: Unfortunately, you cannot file your application until you have completed all of your coursework, and
TREC must require proof of insurance from all applicants who apply on or after September 1.
Q: I am not currently performing inspections, but I'd like to maintain my license. Is there a
way for me to do that without going to the expense of obtaining insurance?
A: An inspector who meets all other renewal requirements but does not show proof of insurance will
receive an inactive license (which does not permit the inspector to perform inspections). To become
active, a professional inspector would need to send in the Return to Active Status form (or, for
apprentice or real estate inspectors, the sponsorship form) along with the applicable fee and the
required proof of insurance.
omissions insurance. Why were inspectors singled out?
A: The Texas Legislature voted to add this requirement to Senate Bill 914 in the final days of the 2007
session. While we cannot say why this requirement was imposed on inspectors, TREC is now charged
with enforcing the law.
Q: My inspector license expires June 30, 2008. When do I have to show proof of insurance?
A: Senate Bill 914 requires you to show proof of insurance at the time of your renewal in June 2008.
After that time, be sure to keep your policy current and keep copies of your policies, as you may need
to show proof of continuous coverage from July 2008 through June 2010 in order to renew your license
again.
Q: Can you recommend an insurance company that offers professional liability insurance for
inspectors?
A: TREC is unable to recommend insurance companies and does not maintain a list of companies that
offer professional liability insurance for inspectors. We would suggest that you contact an inspector
trade association or perhaps the company with which you have other insurance (car, home, etc.).
Q: Will TREC have an insurance "pool" for inspectors who are unable to get coverage
through a regular insurance company?
A: When the Texas legislature passed the insurance requirement, they did not create an insurance
pool for inspectors or authorize the Texas Real Estate Commission to do so. Therefore, TREC is
unable to offer coverage to inspectors.
Q: I am currently taking classes to get my inspector license but will not be finished until after
September 1, 2007. Can I file my application before I finish my coursework, or is there a way
for me to be "grandfathered"?
A: Unfortunately, you cannot file your application until you have completed all of your coursework, and
TREC must require proof of insurance from all applicants who apply on or after September 1.
Q: I am not currently performing inspections, but I'd like to maintain my license. Is there a
way for me to do that without going to the expense of obtaining insurance?
A: An inspector who meets all other renewal requirements but does not show proof of insurance will
receive an inactive license (which does not permit the inspector to perform inspections). To become
active, a professional inspector would need to send in the Return to Active Status form (or, for
apprentice or real estate inspectors, the sponsorship form) along with the applicable fee and the
required proof of insurance.
| FAQs on Liability Insurance for Texas FAQ regarding the new requirement (We have cut and pasted it below) http://www.trec.state.tx.us/inspector/SpecialTopics/InspectorLiabilityInsurance.asp#FAQ Certificate of Insurance and other forms for Home Inspectors in Texas http://www.trec.state.tx.us/formslawscontracts/forms/forms-inspector_app.asp |
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As of Sept 1, 2007 all home inspectors in Texas renewing the licenses are required to have Errors
and Ommissions Insurance -at this time (October 2007) this does not include general liability. We
are waiting on a final decisions from TREC.
Please use the information contained below to assist you in your understanding and applications
for E and O insurance. Please confirm ALL information regarding specific limits and requirements
with TREC as this situation is still fluid.
At this time, Home Inspectors are required to carry $100,000 in E & O insurance.
and Ommissions Insurance -at this time (October 2007) this does not include general liability. We
are waiting on a final decisions from TREC.
Please use the information contained below to assist you in your understanding and applications
for E and O insurance. Please confirm ALL information regarding specific limits and requirements
with TREC as this situation is still fluid.
At this time, Home Inspectors are required to carry $100,000 in E & O insurance.
Updated Nov. 26, 2007 OAG Opinion on Home Inspector Liability Insurance - Attorney General Greg Abbott
Texas Occupations Code Chapter 1102. The opinion clarifies that the insurance requirement does not apply to
intentional acts, such as fraud. No legal opinion was expressed as to whether the law requires a general Updated
Nov. 26, 2007errors and omissions policy, or both because the nature of the coverage is a matter of the policy
OAG Opinion on Home Inspector Liability Insurance - Attorney General Greg Abbott contractual in nature; the title
or name of a particular policy is not controlling. The opinion regardless of the name of the policy, the
insurance must protect the public against contractual in nature; the title or name of a particular policy is not
controlling. The opinion concludes that negligence or incompetence in violation of chapter 1102,
subchapter G.
Texas Occupations Code Chapter 1102. The opinion clarifies that the insurance requirement does not apply to
intentional acts, such as fraud. No legal opinion was expressed as to whether the law requires a general Updated
Nov. 26, 2007errors and omissions policy, or both because the nature of the coverage is a matter of the policy
OAG Opinion on Home Inspector Liability Insurance - Attorney General Greg Abbott contractual in nature; the title
or name of a particular policy is not controlling. The opinion regardless of the name of the policy, the
insurance must protect the public against contractual in nature; the title or name of a particular policy is not
controlling. The opinion concludes that negligence or incompetence in violation of chapter 1102,
subchapter G.
| First Indemnity is an affiliate member of ASHI |
