Working RE Home Inspector - Volume 1

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Winter 2016, Volume 1

When Visual Inspection Isn’t Enough How to Get Agents to Hand Out Your Cards When to Report a Claim or Incident Examining Agent-Inspector Relationship Mold Testing Home Inspector 6760 University Ave., #250 San Diego, CA 92115

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Working RE

Home Inspector

Published by

Winter 2016, Volume 1

E&O Insurance Experts (www.orep.org) David Brauner Insurance Services Calif. Insurance Lic. #0C89873

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From the Publisher Readers Respond

When Visual Inspection Isn’t Enough

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How to Get Real Estate Agents to Hand Out Your Cards ction me Inspe Nick’s Ho

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Dew Point - The Mysterious Mix of Water and Temperature When to Report a Claim or Incident

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Examining Agent-Inspector Relationship Inspector Advisor

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Prelisting Inspections: More Income or More Liability?

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26

Introduction to Infrared Thermography Mapping for Success with Google

New Expanded Coverages for Home Inspectors Mold Testing

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Industry News

Professional Marketplace

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Mission Working RE Home Inspector is published to help inspectors build their businesses, reduce their risk of liability and stay informed on important technology and industry issues.

Published by OREP Working RE is published by OREP, a premium provider of home inspector insurance nationwide. OREP’s lowcost, broad coverage policy includes E&O, GL, radon, termite, and many other coverages for no extra premium.

See inside front cover for more or visit OREP.org today for a free quote!

2 Working RE Inspector Winter 2016

Publisher David Brauner: dbrauner@orep.org Editor Isaac Peck: isaac@orep.org

Working RE 6760 University Ave, #250 San Diego, CA 92115 (888) 347-5273 Fax: (619) 704-0567 www.workingre.com

Working RE Home Inspector is published bi-annually and mailed to home inspectors nationwide. The ads and specific mention of any proprietary product 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.

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From the Publisher

Glad to Meet You

by David Brauner, Publisher

If we haven’t done insurance business together yet or you have never seen a copy of Working RE—glad to meet you! My name is David Brauner and I have been providing insurance services and publishing information for home inspectors for over 20 years.

Working RE Home Inspector, which you hold in your hands, is a new spinoff of our premier publication, Working RE magazine. This new edition of Working RE is dedicated entirely to home inspector issues.

We hope you enjoy reading it and will consider posting links in your favorite online forums and telling your home inspector friends about it. It’s free upon request for a limited time.

My goal is to provide you with information that helps you be a better home inspector for your clients and a more successful business owner.

Working RE is published by OREP.org, which provides E&O/ GL insurance for home inspectors. I am a licensed insurance agent in 49 states and serve as Senior Insurance Broker at OREP.org (see inside front cover).

I began OREP in my spare bedroom 14 years ago—filled with optimism, short on cash but long on the drive to make it a success.

I continue to work hard at it every day—so I imagine we have more than a few things in common. With the help of an excellent staff, we have grown OREP into one of the leading providers of insurance for home inspectors in the country.

My goal with this magazine is to provide you with information that helps you be a better home inspector for your clients and a more successful businessowner for you and yours. Thanks for reading!

When to Report a Claim or Incident Most legal cases I have worked on could have been nipped in the bud if inspectors would have let insurance carriers know immediately of the problem no matter how small. I am glad that you brought up “Too many times a polite apology or impulsive admission of responsibility is hard to undo.” Inspectors should never,

ever state that they made a mistake until an expert comes in and all the facts are examined. There are many times I found no mistake was made in the inspection report, but someone in the company already said that they were wrong and that’s brought up in court. (See pg. 18 for story.) –Robert Sprague

4 Working RE Inspector Winter 2016

Kitchen Appliance Inspections I am all about providing full consulting inspections. However, I always charge a good consulting fee based on the number of hours I estimate an inspection will take, and my fees are typically higher than the average home inspector. For instance, I often have clients purchasing a home with the intention to remodel and replace all appliances, and therefore, educated clients do not want to pay for a service not needed.

This is why I offer discounted rates and exclude items per client needs.

I also write into my report the items excluded from the inspection per client agreement. Florida’s statutes state that an inspector shall document items that are not part of the inspection and why. The Standards of Practice discussed here may fall within the same guidelines for other states, but if interpretation is an issue then I advise seeking legal advice. –Mario Neira

Clothes Dryer Vents Thanks for taking time to write about an issue that often is played down because of the lack of access.

However, it is very important and the article helps to put it on the front burner. Good article, please continue to share. –Bruce McRary Great article! Very clear and complete. After 10 years, I’ve seen a multitude of dryer venting configurations, and more than a few not so healthy. How about a “debris under refrigerator” for your next writing.

I’ve seen of a couple of house fires with that one! –William Zoller

Find these stories and more at WorkingRE.com. Opt-in free today for the latest home inspector news and information.

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When Visual Inspection Isn’t Enough

by Isaac Peck, Editor

Many pre-inspection agreements used by home inspectors include clauses that either define the home inspection as a “visual inspection” or deliberately outline that the inspection is limited to what is readily visible by the inspector.

The following are excerpts from several home inspector agreements/Standards of Practice: • The inspector shall inspect readily accessible, visually observable installed systems and components. (ASHI) • Inspector agrees to perform a visual inspection of the home/building. (InterNACHI) • The inspection and report are opinions only, based upon visual observation of existing conditions. (NAHI) • The inspection is limited to visual observation of apparent conditions at the time of the inspection and is not technically exhaustive. (HomeGauge) However, the notion that a home inspection is strictly “visual” has long sparked debate among inspectors regarding just how far an inspector should go to discover hazards and defects in the property. After all, testing the GFCI outlet, opening the electrical panel with a screwdriver, or the use of any tools beyond a flashlight, could technically be classified as going beyond a “visual inspection.”

Jerry Peck, a retired home inspector who now works as a litigation consultant and hosts InspectorAdvisor.com, Isaac Peck is the Editor of Working RE magazine and the Director of Marketing at OREP, a leading provider of E&O insurance for appraisers, inspectors and other real estate professionals in 49 states.

He received his master’s degree in Accounting at San Diego State University. He can be contacted at Isaac@orep.org or (888) 347-5273.

6 Working RE Inspector Winter 2016

says that even when an inspection is referred to as a visual inspection, if tools of any type are used, whether the tool is as simple as a screwdriver, or more complex such as a moisture meter or receptacle outlet tester, or if appliances are operated, then the inspector has raised the bar beyond a “visual inspection.”

“Any home inspector using any reasonable ‘standard of care’ is not doing a strictly ‘visual’ inspection, regardless of how many times the inspector may state in the report or contract that their inspection is just a ‘visual’ inspection,” says Peck.

The practice of labeling an inspection as strictly a visual inspection dates back to the 1970s when the profession was just getting started, according to Peck. “I suspect the last ‘visual’ home inspection was in the 1970s or early 1980s by one of the ‘old guys’ who helped start this profession. I know the pioneers in Florida did not really do a ‘visual’ inspection even back then. When

they suspected a moisture problem, they would take tissue paper and press it against the wall, if the tissue stuck to the wall, the wall was ‘wet’, if the tissue did not stick to the wall but fell off and felt moist, the wall was ‘damp’, which indicated a potential moisture page 8

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page 6 problem. As soon as they pulled out a tissue and used it to determine if the wall had moisture, the inspection was no longer just visual,” says Peck. “A truly ‘visual’ inspection could basically be done by just walking around and looking, with the inspector’s hands kept in his or her pockets,” Peck insists.

Bruce Ramsey, an inspector from Georgia with 15 years’ experience, supports Peck’s conclusion, pointing out that inspections that adhere to the Standards of Practice of many associations are not simply visual, despite what many inspectors put in their contracts.

“Testing receptacles, operating faucets, flushing toilets, operating windows and doors, probing for moisture, operating HVAC, are just some of the non-visual activities that are part of a home inspection. When you add in tools like moisture meters, infrared cameras, thermometers and receptacle testers, inspections move farther away from purely visual,” says Ramsey.

Ramsey says that a more accurate contract wording would be to say that the inspection is “primarily visual,

but not technically exhaustive.” That’s because the phrasing “not technically exhaustive” is more in line with what most home inspectors actually perform. “The receptacle tester is a tool that indicates wiring problems but does not definitively identify the exact cause of the problem. The actual cause ranges from faulty wiring to damaged equipment. In such a case, the inspector is able to identify a problem, but the inspection is not technically exhaustive enough to determine the root cause,” says Ramsey.

The phrasing “not technically exhaustive” is more in line with what most home inspectors actually perform.

Legal Ruling One legal ruling that relates to this topic is the case of Nauman vs. Real Estate Support Services (RESS), wherein Paul and Nora Nauman (the Naumans) sued RESS for failure to discover defects in a property they purchased. While the ruling is dated, having been issued in 1994, it nevertheless sheds light on how the courts interpret “visual inspection” wording in a contract. In

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the case, RESS had a contract with Coldwell Banker Relocation Services to provide home inspection services where the objective of the relocation home inspection report was to “provide the client with a report of the relocating employee’s home, consisting of a series of visual inspections.” While Coldwell Banker was listed as the client, the inspection agreement stated that “the client may at its discretion disclose [the report] to other interested parties.”

The Naumans made an offer on a property listed by Coldwell Banker that had been inspected by RESS six months earlier. During the purchase transaction, the Naumans were told that their offer would be accepted only if they accepted the home inspection report by RESS, which they did.

Shortly thereafter, the Naumans discovered a defect in the chimney not mentioned in the inspection report.

The report had merely indicated the flue was “acceptable.” The Naumans then sued RESS for damages.

While much of the case rested on the question of whether the Naumans were legally entitled to rely on the inspection report, given that RESS’s inspection contract was with Coldwell Banker, the Appeals Court of Indiana addressed directly RESS’s argument that, per their contract, the inspection was limited to “visual” elements only:

“The inspection conducted in this case was demonstrably not limited to a ‘visual’ examination of various items.”

The Naumans ultimately won the claim with the appeals court rejecting the defense of a “visual only” inspection, and holding that the Naumans were a “third party beneficiary” of the contract between RESS and Coldwell Banker, and were consequently entitled to bring suit over the inspection’s deficiencies.

This case may not completely remove the “visual inspection” defense from home inspectors (they still can’t see through walls), but it does offer valuable insight into how some courts interpret the responsibilities and duties of the inspector. It also is a sobering reminder for inspectors that when they mark an item “adequate” or “acceptable,” they are certifying that they have inspected the item. To limit their liability, it may be wise for inspectors to qualify their statements in similar cases, describing to what extent an item was inspected and what specialists should be contacted if further information is sought. page 10

“The inspection conducted in this case was demonstrably not limited to a ‘visual’ examination of various items. The inspector had not limited the inspection of the garage door opener to a visual examination of it and had not limited the inspection of the electrical system to a visual examination of the electrical panel. He had engaged the garage door opener to determine whether it was operable and had removed the front cover from the electrical panel to fully examine it. Further, the inspection report itself shows the inspector inserted dye into the private sewage system, and such conduct is not merely a visual examination even though the inspector also examined the grounds for the dye as a sign of seepage. The Naumans’ claim the inspection of the chimney likewise should not have been limited to a visual examination. The trial court determined that to have marked the chimney flues as ‘adequate,’ without first having removed the cap and looking down the chimney, was negligent. The evidence supports this conclusion.”

Working RE Inspector Winter 2016 9

page 9 State Requirements The Standards of Practice (SoP) in some states have specific requirements that the inspection cannot be strictly visual. For example, Indiana’s SoP states that the inspector must “inspect the interior components of service panels and subpanels.” However, state SoPs can also help to limit an inspector’s liability. In Indiana, the state SoP specifically clarifies that inspectors are not required to “inspect the interiors of flues or chimneys.”

Inspectors working in states with SoP should be mindful of what they are and what they are not responsible for.

Local Standard of Care At the end of the day, most home inspectors just want to do a thorough job and stay out of trouble, protecting their license and livelihood while providing a quality service to their clients. The best way to do that, according to many veteran home inspectors, is to meet the “standard of care” required of your profession.

Scott Patterson, veteran inspector and expert witness, reports that he has seen the issue of “visual inspection” arise in more than one legal defense. “I can tell you firsthand that the standard of care, i.e., what other professional inspectors in your area would do, is the best defense and what most, if not all, attorneys strive to show,” says Patterson. Patterson continues, “If you are in a licensed state that has an SoP, as long as you perform your inspection to the standards of the licensing law, it makes it extremely difficult for a plaintiff to claim you were negligent. This is just another unexpected bonus from home inspector licensing laws.”

Todd Stevens, experienced home inspector trial lawyer and past President of the San Diego Bar Association, says that the home inspector’s responsibility for a visual inspection is a tricky area. “I’ve litigated cases that involve mold or other defects that were behind a wall.

The plaintiffs will typically argue that the inspector should’ve seen it anyway, or that something was visual that at least was a red flag and the inspector failed to mention it,” says Stevens.

Stevens echoes Patterson’s comments, explaining that these cases often come down to a standard of care.

However, the inspector’s standard of care is not always crystal clear, and may vary by state or locality. “A standard of care is what is generally practiced by professionals in the community. Here in California, the only codified

10 Working RE Inspector Winter 2016

standards are the California Real Estate Inspection Association (CREIA) standards, so these function as the minimum standards an inspector is held to. The catch is that if it’s common practice for home inspectors in a state or community to perform a certain function that is beyond the minimum requirements, some plaintiffs may try to argue that an inspector’s standard of care should exceed the minimum standards,” says Stevens.

When there’s a disagreement on what constitutes a standard of care in an area, it will frequently turn into a battle between expert witnesses.

When there’s a disagreement on what constitutes a standard of care in an area, it will frequently turn into a battle between expert witnesses. “When cases go to trial, experts are typically hired by both sides, with the expert on one side saying that the standard of care is X, Y, and Z, and the other expert will say the opposite,” Stevens explains. “Good experts are home inspectors themselves or former home inspectors who know the industry well. The jury then has to decide what’s the more reasonable requirement or standard.”

The best way for inspectors to protect themselves is to document and photograph any red flags, put them in the report, and state that further testing is required, according to Stevens.

The lesson for home inspectors is clear: even if a home inspection contract has language limiting a home inspector’s liability to what is visually observable, the home inspector still may be held liable for something not readily “visible.” Home inspectors should be careful to follow their SoP and meet the standard of care in their area, where applicable. Additionally, home inspectors should be very cautious when reporting that items in a home are “acceptable” if the inspector did not, or was not, able to fully inspect the item. Wherever possible, a home inspector should qualify the degree to which different items in the home were inspected and recommend that qualified specialists inspect items that the inspector has no experience or ability to fully investigate. WRE For the latest home inspector news and information, opt-in free online at www.workingre.com (Home Inspector Edition).

How to Get Real Estate Agents to Hand Out Your Cards

by Nick Gromicko, InterNACHI Founder

Inspection e m o H ’s k Nic

As a Realtor for many years, I dreaded the thought of having to listen to a local home inspector’s presentation at the mandatory Tuesday morning sales meeting.

Home inspectors were so boring and never offered any information that was useful to my real estate business: “Hi, I’m Bob from ABC Inspections. I’m thorough, I arrive on time, uh… did I say I was thorough?” Uggghhh!

So, when I became a home inspector, I knew I needed to do something better, something interesting, and something that would actually be useful to real estate agents.

I came up with this: I asked the broker/owner of the real estate office if I could bring in a truckload of insulated concrete forms (ICFs) and demonstrate how a corner of a foundation is constructed using ICFs. I also explained that I was going to bring in a stack of 3.5 x 8-inch cards with all the sales talking points for ICFs printed on them. The cards would help a listing agent highlight a home with an ICF foundation, and they’d help a buyer’s agent talk intelligently about ICF foundations when showing a home built with them. The cards were sized to fit in the glove compartment of the real estate agent’s car. I said that I would provide enough cards for agents who wanted to give them out to their clients who were buying a home with an ICF foundation.

The presentation was very dramatic. Setting up the block corner gave me something to do with my hands and allowed me time to compose my thoughts between periods where I would turn to the audience of agents

and tell them about the next benefit of ICF construction. I also passed around one of the insulated concrete forms, since they’re light. Some agents actually stood up to watch and listen to my presentation. You know you’re keeping your audience’s attention when they rise to their feet.

At the end of my show-and-tell, I offered the cards. Every agent took them until I ran out.

At the end of my show-and-tell, I offered the cards.

Every agent took them until I ran out. The broker/owner/manager asked if she could call the manager at one of their other offices and have me repeat my presentation at their sales meeting, too. Word got around town, and I eventually gave that same presentation at many real estate offices’ sales meetings.

I was often asked to leave the ICF corner and a stack of cards in the meeting room for an extra week so that agents who missed the presentation could see it and get some informational cards. Agents would also call me when they ran out of cards. It was really great for my inspection business to have those talking-point cards in the glove compartments of all those agents’ vehicles knowing that they were being handed out to all those consumers who were about to hire a home inspector.

Nick Gromicko is founder of InterNACHI, the International Association of Certified Home Inspectors, based in Boulder, Colorado.

InterNACHI is the world’s largest association of property inspectors—with one of the largest websites on the Internet at www.NACHI.org—offering education, training, benefits and support to its members to help them succeed in the home inspection industry. Author of more than 25 inspection textbooks, including the best-selling “How to Run a Successful Home Inspection Business,” as well as hundreds of informational articles for consumers and professionals, Gromicko promotes the home inspection industry and advocates for inspectors throughout North America and beyond through training and support.

12 Working RE Inspector Winter 2016

You can probably guess what was on the back of those cards: my inspection company’s contact information.

for DIY videos on YouTube, or visit a local installer. It just doesn’t get any simpler.

I accomplished so many things at once with these presentations:

Also, if you are an InterNACHI member, don’t forget to let all the agents know that they can get all their required continuing education for free at InterNACHI. To order the free marketing cards, visit www.

InspectorOutlet.com, click Free Real Estate Agent Marketing Cards.

1. I was able to personally introduce myself to dozens of real estate professionals at the same time.

2. Rather than make an uninvited nuisance of myself, I helped take the monotony out of their typical sales meetings, which was another way I made my presence welcome and myself memorable.

3. I was able to demonstrate my competence and knowledge, and I offered them freely to the agents so that they could do the same for their clients.

4. I forged a bond with these professionals so that I’d be at the top of their list when they were recommending a home inspector.

5. I got them to market me by passing out my cards.

You don’t have to be a whiz at PowerPoint or a construction expert to do what I did.

You don’t have to be a whiz at PowerPoint or an expert in construction to do what I did. When you know that you’ll have a captive audience, you need only present an idea that they’ll find useful and informative enough to pass along, even if it makes them sound like they’re the expert. The relationship you create with real estate professionals is give and take, but you both have the same goals in mind: to serve your clients and to close the sale.

Remember that you can take any type of concept to make this marketing strategy work. Find some local product or trend that may be especially popular in your area. Green homes, water features, septic systems, pools, barns, historic homes, bamboo flooring, Xeriscaping™—the ideas are endless. But it helps if you have the pulse of your service area, or at least an idea of the local listings, which are available as a matter of public record.

Once you land on an idea for a presentation, you don’t need to spend weeks putting it together; just find the manufacturer’s information and build on that.

When I did my presentation on ICFs, the manufacturer provided facts and statistics on how strong ICFs are, their superior insulative value, etc. If you want to add some demonstration component like I did, you can look

Also, let them know that if they have hesitant buyers, the best way to get their clients into a home is to let them know they have a way out through InterNACHI’s “We’ll Buy Your Home Back Guarantee.” (For more information, visit InterNACHI.org, click Membership and Benefits, Member-Only Guarantees.)

Being innovative with your marketing doesn’t mean you must be a genius researcher or gifted at oratory.

It requires motivation and a little creativity. You’re not likely to receive a random request from your local real estate office to give a presentation until they know its value; likewise, you can’t wait for an invitation to be bold in your business. WRE

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Working RE Inspector Winter 2016 13

Dew Point – The Mysterious Mix of Water and Temperature

by Tom Feiza, Mr. Fix-It, Inc.

Dew

point affects many home issues and mechanical systems. Basic principles of science explain how dew point works and how this relates to home inspections.

Dew point basics Invisible water vapor is always present in the air. At times, it condenses as visible moisture. Dew point is expressed as a certain temperature. Outdoors, when the air temperature drops below the dew point, condensation occurs, causing rain to fall—for example, it rains when a cold front moves in.

You can also see dew point at work on a hard surface, such as the outside of a glass of water. If the temperature of the drinking glass is below the dew point of the air around it, water condenses on the outer surface of the glass. When you see moisture forming on a surface, think: “The temperature of the surface is below the dew point temperature of the air.” That’s all you need to remember.

Figure 1

But what does dew point mean to home inspectors? Here are some situations you’re likely to encounter.

Window Condensation in Cold Climates Dew point is at work when condensation occurs on cold windows (See Figure 1). During the winter, window glass is often the coldest surface in the home. Cold air drops along the glass to the sill. The glass stays even colder when an interior screen or shade keeps radiant heat in the room from reaching the glass. The temperature of the glass is below the dew point temperature of interior air, so condensation forms. If the glass is colder than 32 degrees Fahrenheit (F), ice will form (See Figure 2).

What should you tell customers with window condensation problems? “The temperature of the glass is below

14 Working RE Inspector Winter 2016

Figure 2

the dew point temperature.” There are two ways to remedy this: either raise the temperature of the glass or reduce the moisture in the air. Glass temperature increases along with higher outdoor temperature, higher indoor temperature, open shades, or even indoor air movement. Set up a small fan to blow air on the problem window; the moisture will go away, because air movement raises the temperature of the glass.

Condensation in Hot, Humid Climates In hot, humid climates, condensation forms on the outside of windows (See Figure 3).

away from the air conditioner through a condensate (water) drain line. This process, too, involves dew point.

The evaporator coil remains at about 45 degrees F. A fan blows home air across the coil, and since the coil is below the dew point temperature, the air is cooled and moisture forms on the cold coil.

100 Degrees in Arizona – but It’s Dry Heat Why do we feel cooler when air is dry? Because the dew point temperature is low. Dry air allows water to evaporate from our skin as invisible vapor at a faster rate. The dry air is looking for water.

When water evaporates from our skin, it changes phase from bulk water to vapor. Our warm body transfers heat to the water so it can evaporate (boil). As the change of phase takes place (boiling), the body is cooled. It takes 144 BTU of energy for each pound of water evaporating from our skin.

You can test this yourself by jumping into a pool. When you get out, you will feel colder as the moisture on your skin evaporates into invisible water vapor in the air.

You can test this yourself by jumping into a pool. When you get out, you will feel colder as the moisture on your skin evaporates into invisible water vapor in the air. More wind or other air movement causes more evaporation.

Figure 3

The home’s air conditioning cools the window. The cooling effect eventually reaches the outside of the glass, and when it drops below the dew point temperature of the air, condensation occurs on the outside.

Exterior glass condensation can also occur in cold climates when air conditioning is running and the air is hot and humid. If the air cools overnight and drops below the dew point temperature of the glass, condensation occurs.

Dew Point and Central Air Conditioning You already know that air conditioning lowers indoor air temperature and removes moisture, which drains

Wind Chill Effect Let’s say you live in a cold climate. What is that “wind chill” the weather person talks about? On a windy day, the wind chill temperature is below the air temperature.

That’s because when skin is subjected to air movement, we feel cooler. The water on our skin evaporates (boils) into invisible water vapor, and heat transfers from the body to evaporate water at a faster rate. Wind also breaks through the thin layer of warm air surrounding the skin, increasing the rate of convection away from skin.

Heat Index OK, let’s boil that water from our skin again – remember it takes energy for the change of phase from water to vapor.

When the air is hot and humid, the dew point is high.

The moisture on our skin evaporates at a slower rate page 16 

Working RE Inspector Winter 2016 15

page 15 because the air is already saturated with water. When less water evaporates from our skin, we feel warmer.

Swamp/Evaporative Coolers In hot, dry, desert-like climates, it makes sense to cool homes with swamp coolers or evaporative coolers. A typical swamp cooler sits on the roof, with ductwork connecting it to the home’s interior (See Figure 4).

Figure 4

The swamp cooler itself contains evaporative material saturated with water. A fan draws in dry, hot outdoor air and moves it across the material. The water on the material evaporates (boils) into invisible water vapor and heat is removed from the air. The system needs a water supply. A small pump constantly floods water into a pan holding the evaporative medium. These units do add moisture and raise the dew point temperature of the air, but since the air was desert-dry before it entered the system, adding a little moisture doesn’t make the home’s interior uncomfortable. The system requires constant maintenance, because circulating outdoor air draws dirt into the evaporative medium and the water.

Old, Dry and Drafty Homes Imagine a drafty old house during a cold winter. Air leaking in from outdoors makes the interior of this house cool and dry – and kids have great fun shuffling their

16 Working RE Inspector Winter 2016

feet on the rug to create shocks from static electricity.

Figure 5 shows that when we take typical outdoor air at 30 degrees F and 80% relative humidity and heat it to 70 degrees F indoors, the relative humidity drops to 20% but the dew point stays at 25 degrees F (See Figure 5). That cold outdoor air really dries out a home as it moves indoors. It doesn’t cause condensation on interior surfaces because the indoor temperature is above the dew point of 25 F.

Figure 5

Dripping Bath Fan in Cold Climate Another situation you might encounter: water dripping around the housing or below the discharge duct of a bath fan (See Figure 6). When the damper sticks open, warm air moves up into the cold duct or cold air drops into the duct. The duct is below the dew point temperature of the air, and if enough moisture forms, the fan drips into the bathroom.

Attic Mold in Cold Climate If there’s mold on the roof deck, it must be below the dew point temperature, right? Water is essential to mold growth. Mold occurs on the roof structure and deck in a cold climate because the framing and deck have been wet over time. Warm, moist interior air is leaking into the attic through gaps around light fixtures, plumbing and electrical penetrations and around the chimney. As the warm, moist air contacts the cold

roof deck, it is cooled below the dew point temperature. Water forms and mold grows on the attic dirt and wood. The solution involves stopping those air leaks.

Installing air seals between the heated space and the attic will address this problem.

Always remember the answer to condensation questions: “The surface temperature is below the dew point temperature.” And remember the solution: raise the surface temperature or lower the moisture level in the air around the cool surface. WRE Tom Feiza has been a professional home inspector since 1992 and has a degree in engineering. Through HowToOperateYourHome.com, he provides high-quality marketing materials that help professional home inspectors boost their business. Copyright © 2015

by Tom Feiza, Mr. Fix-It, Inc. Reproduced with permission.

Visit HowToOperateYourHome.com (or htoyh.com) for more information about building science, books, articles, marketing, and illustrations for home inspectors. Please e-mail Tom (Tom@ misterfix-it.com) with questions and comments. Phone: 262-303-4884

Figure 6

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Working RE Inspector Winter 2016 17

When to Report a Claim or Incident

by David Brauner, Senior Insurance Broker, OREP

For many home inspectors, the anxiety ratchets up a few notches when facing an unhappy and complaining client, but not always for the reasons you might expect.

Many home inspectors are confident in their reports, so that typically is not the worry. For these inspectors, the heartburn is not that they made a mistake in the report but whether to report the complaint to their insurance agent, just “take care of it” themselves, or simply to ignore it. Most inspectors have walked in these moccasins at least once.

If you do report it, the worry is that the insurance company will simply “roll over” and pay off a complaining client to save itself money and then raise your rates next year, whether the complaint had any merit or not.

To a careful and competent inspector, that prospect is enough to make your blood boil. And to add insult to injury, the “settlement” is usually just under the deductible cost and comes out of your pocket!

If you’re with me so far, here are a few things you ought to know.

David Brauner is Publisher of Working RE magazine and Senior Broker at OREP.org, a leading provider of E&O Insurance for inspectors in 49 states. He has provided E&O for home inspectors for over over 20 years.

He can be contacted at dbrauner@orep.org or (888) 347-5273. Calif. Insurance Lic. #0C89873.

18 Working RE Inspector Winter 2016

1. Most insurance policies contain language requiring the insured to report the claim or incident when it happens. A claim can usually be defined as a demand for money or simply a “demand.”

Admittedly, this can be murky territory. It doesn’t hurt to take a look at your policy language.

With the OREP home inspector policy, a claim means a written demand or suit you receive. In this case, suit means a civil proceeding for monetary, non-monetary or injunctive relief, which is commenced by service of a complaint or similar pleading.

While a verbal demand or complaint technically does not meet this definition of a “claim,” it can still trigger the reporting provision in your policy for reporting any incident that reasonably could give rise to a claim in the future. Most inspectors ignore verbal complaints but take written ones seriously, especially if they are delivered on a law firm’s letterhead and arrive via Certified Mail. Know that the language of many insurance policies do not make any distinction between a verbal and a written complaint. You usually have a duty to report. The good news is that, contrary to what you might think, reporting is in your own best interests.

2. Home inspectors do make mistakes, sometimes serious ones that wind up costing tens of thousands or even hundreds of thousands of dollars to defend and settle. If you have insurance and you find yourself embroiled in a complaint, pat yourself on the

back for avoiding the potential catastrophe of having to come out of pocket to defend yourself. No one likes insurance until they need it. If you don’t have insurance, get sound legal advice as soon as possible.

Why Report First, as explained above, most policies have language requiring you to report a claim or incident. Why is it so important for the insurance company to know about the claim or potential claim when it happens? Because experience shows that when an insured (you) attempts to handle a claim on their own, they are more likely to hurt their own defense rather than help it. The best advice is to let the experts handle the response, even the initial one. Too many times a polite apology or impulsive admission of responsibility is hard to undo.

Too many times a polite apology or impulsive admission of responsibility is hard to undo.

Secondly, if you do not report an incident when it happens, and some time goes by and the incident resurfaces as a full-blown claim, the insurance company has the right to refuse coverage if they feel the delay in reporting has complicated the defense. That’s what most policy language says. It’s rare but it can happen.

Additionally, if you have completed a renewal application in the meantime and checked the box “no claims or incidents,” they are going to want to know why. If they believe you willfully concealed facts, they can refuse coverage. They may defend the claim but won’t renew your policy. When you go to find a new carrier, one of the questions might be whether you’ve ever been denied coverage and why. You get the picture. It can get ugly.

Claims Made Most every inspector has a “Claims Made” policy. This means the claim has to be reported during the policy period. If you let your policy lapse (don’t renew) or it is cancelled due to non-payment, the policy period ends.

If you did not report the incident when the policy was in force (or during any applicable extended reporting period), there is no coverage for that incident. Moving your policy to another company at renewal is fine, as long as the new company offers prior acts coverage and there is no lapse in coverage. But imagine this scenario: a homeowner complains about an item or two in your report a few months after moving in. You rebut it

verbally and then hear nothing more. You did nothing wrong so you assume it’s resolved. In the meantime, you’ve let your policy expire because business is slow, or you hate insurance, or you went on vacation and forgot to renew it in time. Today, six months later, you receive a certified letter from the homeowner’s cousin Joey who has just opened up his own legal practice and now wants to practice on you. If you reported the incident when it happened, even if you let your Claims Made policy lapse, it should be covered because it was reported when the policy was in force. If you didn’t report the claim/incident when the policy was in force and it has expired, there will be no coverage. So by reporting you are protecting yourself.

Mythbusters Finally, most of the large established insurance programs for inspectors, especially those backed by long-standing insurance carriers that have been in business for many years, like OREP’s, have a staff of adjusters whose job it is it to evaluate the merit of these claims. If the claim is frivolous, the adjusters will respond accordingly.

Typically, if the issue goes away at this “first defense” point, there is no cost to the insured’s deductible and no premium increase next year. A happy ending.

So, to summarize, at most insurance programs like the one at OREP, there is no downside to reporting incidents or complaints when they happen, and in fact, reporting can offer you the kind of protection you purchase insurance for in the first place. WRE

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Examining Agent-Inspector Relationship

by Isaac Peck, Editor

The home inspector’s relationship with the real estate agent is a topic often discussed among home inspectors and agents. Some inspectors tout strong relationships with real estate associations and agents as the best way to grow an inspection business. Others say the reliance of the inspector on agent referrals is a key problem when it comes to keeping an inspector honest, ethical, and professional.

The fact is, a large percentage of inspectors rely on agent referrals to bring in work and keep them in business.

While this is not necessarily a negative thing, many inspectors argue that there is an inevitable conflict of interest inherent in such a relationship, as ambitious and unethical agents select inspectors who are less thorough. Some inspectors complain that on numerous occasions they’ve had agents combatively ask them if they are “deal killers,” sometimes right in front of the buyer!

Those who follow the relationship between real estate appraisers and mortgage brokers, agents, and lenders may see similarities between the way the appraiser is pressured into meeting “value” and how inspectors are encouraged to “sign-off” on a home after a quick inspection. Sean Wiens, an inspector from Vancouver, Canada, sees agent referrals as a threat to the integrity of the profession, saying that inspectors who are the most successful are the ones “who cater to the agents.”

22 Working RE Inspector Winter 2016

The result, according to Wiens, is that inspectors end up not looking out for the buyer’s best interests and that lowers the standards of the profession.

Dennis Robitaille, Director of Independent Home Inspector’s of North America (IHINA), believes that an inspector’s reliance on agent referrals creates a serious conflict of interest and this belief is what led him to found IHINA. Robitaille says that some agents have a list of two or three home inspectors who have been prescreened as not being deal killers. “The list, however, will be long enough to protect the agent from any referral liability should the buyer want to blame the agent for any inspection mistakes.” This results in no liability for the agent but the buyer’s choice is limited to inspectors who will not hurt the sale, says Robitalle.

On the other hand, there is a strong argument why an ethical agent’s referral adds value to the buyer and benefits all involved. A seasoned real estate agent has years of experience and expertise in the local market. If the agent is honest he or she can save a buyer a lot of time, money and frustration by referring a competent home inspector. Lenn Harley, a real estate broker in Maryland, says that good agents have learned to recognize good home inspectors and other service providers to homebuyers. “Our buyers rely on our experience for matters as important as a home inspection,” Harley says. According to Harley, there is a trend in the real estate industry for agents to avoid risk by not making referrals and not attending home inspections. But her position is that the agent referral actually adds value to the buyer. “When homebuyers ask me for a home inspector referral, I refer them to the most competent and thorough inspector I know,” says Harley.

Serving the Client Dick Greenberg, a real estate broker from Colorado, says, “We never hesitate to make recommendations, whether they are inspectors, lenders, handymen, carpet cleaners, etc. because we care about the client’s satisfaction. Our favorite inspector has ‘killed’ several deals for us, and we and our clients were grateful.” In other words, for the ethical agents and brokers, it’s a question of serving the clients and building strong relationships.

“Our commission comes from our clients, not a particular deal, and it has never made sense to jeopardize a client relationship by recommending an inspector who would do less than serve his or her client’s needs,” says Greenburg.

As far as there being a conflict of interest when it comes to agents referring home inspectors, Greenburg says, “For that concern to be valid, you’d need at least two people to ignore their duty to their client—the agent and the preferred inspector. While it’s certainly not an impossibility, those are the same agents who bend or break the law and code of ethics as a matter of routine.

The answer is to get rid of them, not limit the service we provide on the presumption that we’re all like them,” says Greenburg. In other words, for the many honest and ethical real estate agents, brokers, and home inspectors—building strong relationships and referral arrangements is a way to help all involved. It provides the inspector with business, the real estate agent/broker with a knowledgeable, reliable, and thorough inspector to refer to their clients and helps homebuyers by providing them access to a dependable professional.

Of course, not all real estate agents/brokers are honest and ethical, so perhaps the best route an inspector can take is to diversify. Work closely with and market to real estate agents/brokers and find the ones who want ethical work, while also building up other avenues of business through direct marketing, an effective website and strong Internet marketing. In short, the best safeguard against an inspector becoming too reliant on agent referrals is to build a diverse business that is arguably more sustainable and profitable in the long run. WRE

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Editorâ&#x20AC;&#x2122;s Note: InspectorAdvisor.com is an on-demand support service answering your home inspection, construction, code, liability, and other tough technical questions.

InspectorAdvisor.com is hosted by OREP.org and features insights, advice and answers of veteran inspector Jerry Peck. His column is a regular feature of Working RE Home Inspector.

Inspector Advisor

by Jerry Peck

Q: How should I test overhead garage door operators and what is the proper test for the auto-reverse feature?

A: Before testing the operation of an overhead garage door with its operator, a thorough visual inspection should be conducted of the door and its various parts (see sidebar).

If any of the items inspected are not in the condition the item(s) should be in, the door should be serviced and/or repaired by an overhead garage door professional BEFORE testing the door with the operator, as any of the items inspected could indicate an overhead garage door installation which is subject to failure. And, yes, the door could potentially fall off the tracks or the tracks could fall down.

If all of the items check out as being in good and proper condition, only then do you proceed with an operational test using the overhead garage door operator. The overhead garage door operator controls (control buttons) should be at least 60 inches above the garage floor and any adjacent floor, such as the floor inside the house at the garage/house door. If the operator controls are 60 inches above the garage floor and the house floor is a higher than the garage floor, and the garage/house door is adjacent to the operator controls, the controls will be less than minimum 60 inches high above that adjacent floor.

Visual Inspection First Before testing the operation of an overhead garage door with its operator, a thorough visual inspection should be conducted of the door and its various parts including: the door panels for cracks or damage; all hinges, rollers, tracks and mounting hardware to make sure there are no damaged, loose or missing parts; the tracks to make sure they are not bent, damaged or loose on their hangers/supports; the springs for cracks or breakage; the cables for damaged or frayed areas; the tension springs for safety cables installed (safety cables should be installed through the springs and securely fastened at each end to keep a broken spring from flying away); the top of the overhead garage door where the operator attaches to the door for cracking/flexing/damage; check that a stiffener brace is installed along the top of the door to keep the operator from bending the top panel. Check that the photo cells are installed at each side of the door at the bottom of the door tracks, that the photo sensors are no greater than six inches high, that the photo sensors are facing each other and that the manual door locks are not locked. The manual locks should be disabled.

Look Out Below Before proceeding with the operational test, make sure there is no vehicle parked below the overhead garage doorâ&#x20AC;&#x201D;this is a word of warning based on personal experience. I have had two garage door tracks come apart during operation of the overhead garage door operatorâ&#x20AC;&#x201D;the first one was before I started doing a thorough visual inspection of the door and its hardware first.

Jerry Peck has been in construction since 1972, first as a contractor then as an inspector; he has been inspecting since 1991. He is the owner and principal of Construction Litigation Consultants, LLC and does construction consulting, construction defect litigation consulting, and personal injury litigation consulting when related to construction of new and existing buildings. He has consulted with clients across the state of Florida and throughout the Southeast, as well as having had cases from Arizona, Kentucky, Oregon, Montana, New Jersey, and more. Jerry is a licensed General Contractor, Plans Examiner, and Code Inspector in Florida. He also does code consulting related to the Florida Building Codes and the International Building Codes, along with various state codes based on the International Building Codes. Peck answers your questions at InspectorAdvisor.com.

24 Working RE Inspector Winter 2016

The track was a sectional two-piece and one of the two bolts holding the sections together had a missing nut and the bolt was almost falling out of its hole. The other bolt and nut were loose. When I pushed the operator control button, and as the door began to close, I heard a loud POP and the track snapped downward at the point where the two pieces of track were connected.

Fortunately, the loose bolt held and kept the track from completely falling down and piercing the roof of a brand new Lexus parked below the door.

from the attachment point, the bottom of the door could be crushed upward, bowing the bottom panel. This does not indicate a defective door; this indicates an incorrect test and that you will need to get your checkbook out to replace that bottom panel. Some inspectors fear the 2x4 test, yet every overhead garage door operator installation instructions I have seen states that is the one and only way, and the proper way, to test the auto-reverse feature. (To see a full maintenance guide for garage doors, visit WorkingRE.com/Dasma.)

After a brief recovery, I looked around the garage floor and found the bolt which had popped out of the track.

I eventually found the nut which went flying across the garage when it popped off the end of that bolt. I set my ladder up next to the track, managed to raise the track back into position, reinserted the bolt and put the nut on as far as I could. Then I wrote the door up as having a loose bolt and nut and that the garage door needed to be serviced by a professional garage door contractor BEFORE the door was operated again. The owner called a garage door company who came right out and serviced all three overhead garage doors. They found some other loose items which I had not seen.

It is imperative that the inspector know what they are doing and how to do this test, which includes proper placement of the 2x4 and checking the door for damage, problems, issues before performing the test.

Now, with no vehicle parked below the door, operate the overhead garage door with the homeowner installed controls (the button). If the door is closed, the door will open. Watch the door for any signs of trouble. If there are no issues, use the normal homeowner control button to close the door. Watch the door for any signs of trouble. If there are no issues with the door closing, use the control to open the door once more.

After the door has opened, close the door one more time, and this time, as the door is closing, swing something through the photo cell beam (I always just swing my leg up to break the beam). The door should stop closing and reverse, moving toward its open position.

Testing Auto Reverse Now it is time to test the auto-reverse feature (starting with the door in the open position). Place a length of 2x4 below the door (I keep a piece about a foot long in my tool bag), lengthwise parallel with and directly below the door so that the door meets the approximate center of the 2x4. The 2x4 needs to be placed on the floor directly below the point where the operator is attached to the door. Check for any signs of buckling of the door as it may not be braced properly for a door operator. If the 2x4 is placed off-center or perpendicular

Press the control button and stay next to the button in case you need to reverse the door manually by pressing the button (in case the door does not auto-reverse as it should). Watch the door and track as the door closes and meets the 2x4. Technically, the door should automatically reverse within two seconds of touching the 2x4.

It is difficult to time the door, so I watch the door and track. If the track bows upward while the operator is trying to use the door to crush the 2x4, the auto-reverse IS NOT WORKING PROPERLY as the door should have already reversed. In this case, MANUALLY REVERSE the door by pressing the control button.

Yes, I have had tracks bow up as I stood there watching and telling my client “Yep, that door is not auto-reversing like it should; I’d better reverse the door manually.” Then I would press the control button to open the door—my point having been made. Of course, “making a point” runs the risk of damaging the door. I have never had a door damaged by that test, but it is possible, so the person testing the door needs to know what they are doing and be willing to accept the results. I have had doors fall off their track; no visual inspection could find that. With one, the operator upper limit switch broke as it opened for the third time. The operator continued opening the door to the point that the door was pushed out of the track and fell to the garage floor.

Note that I am not advocating a risky test, I am simply relaying information gained over the years that, if the auto-reverse test on a 2x4 is done properly, the doors should—based on my personal experience, not be damaged—not unless something else is already damaged, loose, etc. WRE

Working RE Inspector Winter 2016 25

Pre-Listing Inspections: More Income or More Liability?

by Joseph Denneler, Esquire

Many inspectors and real estate agents are starting to provide pre-listing home inspections for sellers of homes. Motivated sellers often want to make sure a sale is not cancelled due to an issue arising from the buyer’s home inspection. It’s always a good thing to increase revenue, but are pre-listing inspections also a potential pitfall for the unwary inspector?

Neither state requirements nor an association’s Standards of Practice (SoP) differentiate between the buyers and sellers of buildings with respect to the home inspector’s responsibilities. The scope of the inspector’s duty is always to the client, whoever that may be. A client, under most definitions, is a person who has an interest in the condition of a building, whether it is for the purposes of buying, selling or even to detect defects that could later become costly repairs. An inspector can and should apply the SoP for their state or, where applicable, their association, when doing home inspections. Those standards were crafted to assist you and your client, and to eliminate some common human errors. But some of the general limitations and exclusions from the standard buyer’s home inspection do not apply to an inspection for a seller.

We all know that there are many exclusions and limitations on an inspection that arise because the client, usually a buyer, does not own the building and does not have permission to move personal items, dismantle systems and components or take any action that might cause damage. Some areas of buildings are not accessible Attorney Joe Denneler provides inspection contracts written to the home inspection standards applicable and specific to your state. OREP members enjoy 25% off these services. To contact Joe or if you’re an OREP member and would like the discount code, email subscription@workingre.com.

26 Working RE Inspector Winter 2016

due to locked doors, access points that require more than the mere moving aside of a panel, and so on. These impediments fall away when you are doing an inspection for the owner of a building. If you need access, your client can provide it. If you want to move a chair or table away from a wall, you only have to ask. While no accepted SoP allows an inspector to take these actions when inspecting for a buyer, none limit an inspector from exceeding the applicable standards where appropriate.

I use the fact that an inspector does not have the authority to move or dismantle components when defending home inspectors in litigated matters. I often argue that a buyer cannot have a reasonable expectation that the home inspector will take any action to move or potentially damage things that do not belong to his or her client. Pre-listing inspections do not provide that cover.

The other issue that arises is access to the inspector’s opinions by persons who are not the inspector’s client.

I have heard many horror stories, and have investigated a few claims, where someone “relies” on a pre-listing inspection report that was left for viewing at an open house, or otherwise made available to a potential buyer who did not retain the inspector. They have no contractual relationship with the inspector and, in most cases, the inspector has no legal duty to that buyer.

Unfortunately, as many inspectors have heard me say at my seminars, the truth is just another argument to some folks and their lawyers. The goal, always, is

to prevent claims, not defend them. Once a lawsuit is filed and/or a demand for arbitration made, costs pile up. If you’re insured, you may be required to pay your deductible. If you’re not insured, you may spend thousands out of pocket proving what you already know, that you had no duty to a non-client.

Many states have toothless frivolous litigation statutes that require proof of bad intent rather than misuse of the law. Chances are you are not going to get your money back, and you certainly will not get your valuable time back.

Minimizing Risk Thankfully, there are always ways to minimize risks.

Regarding the access issues, take extra time to make sure your client understands the scope of your inspection. If you elect to perform pre-listing inspections using the same rules you apply to a buyer’s inspection, then use a contract that specifies that scope and make sure your client understands it before you start your work. If you and your client are not averse to using more invasive techniques, then provide an advanced inspection where you do move your client’s personal property, look above suspended ceiling tiles and take advantage of the fact that your client can provide you with unfettered access to the systems and components of the building. Many inspectors use different levels of inspections, and charge

for providing a more involved service. You can protect yourself and generate more revenue at the same time.

The unauthorized use of an inspector’s report by a non-client happens. Many state-based standards restrict an inspector’s ability to distribute the report without express permission of the client. In non-regulated states, many inspectors include a clause in the contract or report advising that the report is only for the use of the client and that any other use is prohibited. Although that alone cannot prevent an unscrupulous litigant from filing a lawsuit, it will help to mitigate the damage by making it relatively simple to get the suit dismissed. If you are going to use that type of clause, make it conspicuous, and make sure you review that issue with your client prior to your inspection. It will serve you well to have your client initial that clause in your inspection contract and put the onus on them to not distribute it. This will further emphasize that you are only working for them, and your opinions are not for the general public.

There is risk inherent in most every inspection. Whether you are inspecting for a buyer or a seller, be clear and precise regarding the scope of your work and for whom it is being done. If you follow that practice, there is virtually no limit to your potential as you work to enter new markets and expand your business. WRE

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Marketing expert Mike Crow shows home inspectors 10 proven strategies to obtain 10 more referrals per month! How much revenue would 10 more referrals a month add to your bottom line?

Learn the key steps necessary for every successful marketing venture and the six critical components every home inspector can improve upon which will help you grow your business.

David Brauner, Senior Broker at OREP shares insights and advice gained over 20+ years of providing E&O insurance for inspectors, showing you how to protect yourself and your business.

10 Strategies To Get 10 More Referrals Per Month Presenter: Mike Crow

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Claims and Complaints: How to Stay Out of Trouble Presenter: David Brauner

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Working RE Inspector Winter 2016 27

Introduction to Infrared Technology

by Christopher Casey, President of Monroe Infrared

Thermal Imagers, better known as Infrared or IR cameras, have been used by forward-thinking home inspectors for many years. The applications and benefits of applying infrared technology have been well documented. So why is there so much hesitation from inspectors to bring infrared service into their business model? Let’s take a look at the top issues inspectors face when considering adding this service.

Expense A good IR camera for home inspection applications can be purchased from $2,500 to $10,000, with many models falling between and around these price points.

Inspectors should consider IR cameras that offer at least 19,000 pixels worth of image resolution and a thermal sensitivity of 0.09°C or better. You can buy one that satisfies these requirements for $2,500–$3,500, depending upon the manufacturer. While there are lower cost and lower resolution cameras available, we have found that the potential issues “missed” by less sensitive cameras make them less than ideal for home inspector applications, which are highly focused on moisture identification. For a better camera and training, your investment will likely be between $4,000 and $8,000, depending upon your budget and commitment. Infrared, like many technologies, has come down in price with the expansion of markets utilizing the technology but as of today the use by home inspectors is still in the minority, probably due to the cost.

Christopher Casey is the President and CEO of Monroe Infrared Technology. He is a is a West Point graduate with a bachelor’s degree in Mechanical Engineering and an MBA from St. Martin’s University. Monroe Infrared is a leading provider of infrared tools and training, and has a reputable history of offering quality Thermal Imagers, Infrared Inspection Services and Professional IR Training to all industries and business sectors.

28 Working RE Inspector Winter 2016

Demand Infrared provides customers a greater level of certainty about issues which might not be otherwise found by the naked eye during the inspection or for some time thereafter. Problems may be proactively identified and addressed now, which can save everyone time, money and headaches. Customers are getting smarter and are starting to expect their inspector to provide IR. I suspect that nearly every person reading this article would agree that customers ask about IR more often today than in years past. Is the business going to a competitor who offers this technology? We regularly hear from home inspectors, who have purchased an infrared camera and attended professionally taught, hands-on thermography certification and marketing training, that they are enjoying a 100–200 percent return on investment in the first year, depending upon which IR camera is purchased.

In other words, on a $4,000–$5,000 investment for an IR camera and certification training, they increase their revenue by $10,000 to $15,000 during the first full year. Many inspectors find that customers will pay for what they perceive to be added value, presented to them by someone who is professional, experienced and who can demonstrate their qualifications and knowledge in the subject matter. page 40 

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Mapping for Success with Google

by Joel Baker, Instructor at a la mode

Whether we’re talking to real estate agents, appraisers, or home inspectors, the subject that always comes up is, “How do I get my website on the front page of Google search results?” Here is a free Google service that can get your website on the front page of search results, and it only takes about five minutes. It is something that every business owner should consider doing if they live or work in their service area.

Here is a free Google service that can get your website on the front page of search results, and it only takes five minutes.

Go to the Google homepage and do a search for “Your City Home Inspector.” So, for example, if you live in San Diego, search for “San Diego Home Inspector.” You’ll see a map that shows some home inspection companies.

You can try it with agents and appraisers too; you’ll see the same thing – San Diego agents and appraisers are all shown on a map.

Once signed in, you will see a map of the United States.

From here, select the Widget in the top right of the screen and click “Create New Page.” There are only a few fields to fill in: company name, address, phone number, email address and website. When you’re listed on the map all of this will show in the results.

It’s also important to include a description of your business.

How do you get your company on this map? Go back to the Google homepage and notice at the bottom a link for “Business.” Click that link. Once on this page that welcomes you to the Google Business Solutions, you will be prompted to “Get Your Business on Google.”

Click “Sign Up.” From there you can either log in into your existing Google account or you may need to create a Google account if you don’t have one. It only takes a few minutes and is also free.

It’s also important to include a description of your business. For home inspection services, you may want to put “radon services,” “historic homes,” or your other specialties. Be sure to list the types of things you specialize in so when people are searching for those services your company will appear in the search results.

Joel Baker is an Instructor at a la mode, a technology company providing software to real estate professionals.

This should only take five minutes and is something that you can do today to get you on the front page of results and hopefully result in more business. WRE

30 Working RE Inspector Winter 2016

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Expanded Coverages for Home Inspectors

by Isaac Peck, Editor

One of the largest, nationwide providers of professional liability (E&O) insurance for home inspectors announces the addition of new, important environmental and other coverages to its flagship home inspector’s E&O program. Many of the new coverages are included in OREP’s base policy with no additional premium. The carrier is “A” Rated, Admitted and has been doing business since 1852. The program is available in most states.

The addition of these new coverages to OREP’s E&O home inspector program makes it easy and affordable for every home inspector to be protected with comprehensive coverage, according to David Brauner, Senior Broker for OREP.org.

Brauner says the OREP package includes comprehensive E&O, full general liability, pest/WDO, lead paint, pool & spa, EIFS/Stucco, commercial, indoor air quality testing, green building inspections, infrared thermography, rodent inspections and more; mold and septic inspection coverage can be added for a small additional cost. (Certain coverages vary by state. Please ask your OREP agent.)

Brauner, who has helped inspectors place insurance coverage for over 20 years said, “OREP was exhibiting at a conference last year when several inspectors visiting our booth said they love the program but needed certain coverages that were not included. It took a year but these coverages and many others have been added, making it one of the broadest packages of coverage available for home inspectors.”

32 Working RE Inspector Winter 2016

The OREP package includes comprehensive E&O, full general liability, pest/WDO, lead paint, pool & spa, EIFS/Stucco, commercial, indoor air quality testing, green building inspections, infrared thermography, rodent inspections and more (most states).

Better still, most new coverages are included free in the base policy, at the already competitive minimum premium ($1,250). This is why cost should no longer be a factor that keeps any home inspector from enjoying complete coverage.

No Time Wasted on Quoting OREP is the only program that allows home inspectors to get back to work fast. Most home inspectors can secure coverage without wasting time on the back and forth of quoting, Brauner said. “For most inspectors, the online application takes just minutes to complete and quote. It gets inspectors back to work fast.

And next year most policies will renew automatically at the same or lower premium with no application needed at all,” Brauner said.

“If inspectors take just a few moments of time this year when shopping E&O insurance, the advantages of OREP’s program will be obvious,” Brauner said. “Give us a call or visit OREP.org to get the details. We answer the phone!” WRE

AssuredBio Full Page

5.

Mold Testing

by Edward Sobek, PhD

Home

inspectors are on the front lines in the battle against mold in residential properties. Mold testing services have been around many years. Many inspectors avoid it while others dive in and tackle it, offering mold testing as an add-on service. On the other end of the spectrum, there are inspectors who have switched to inspecting for mold full time. Is testing right for you at this time? We think for many, the answer is yes.

Providing complete mold/environmental inspection services can be extremely lucrative but requires additional training both on and off the job. However, inspectors can offer a simplified mold testing service without having to become a certified mold inspector. That solution is to provide a “Mold Screening Service,” that is designed to issue a black and white answer to the question of whether a residential property has a mold issue or not. It’s a relatively simple, high-profit add-on service that many buyers take advantage of when it is offered.

By now, the majority of inspectors have some general idea about mold, even if they have a disclaimer in their contract that excludes mold from the home inspection.

There is no denying that it is mold that is the colorful fuzzy material in the crawlspace. Still, many inspectors think it’s too risky to report it. One inspector told me that mold is like a landmine that is best to avoid, rather than risk a litigation “explosion” that could damage his company and livelihood. That is hard to argue with but that is what exactly I am going to do, because the risk of not

reporting mold is more dangerous than any landmine.

It’s more like a powder keg with a short fuse attached to a smoldering cigar—like in an old spaghetti western.

That keg is going to blow and you have no way of knowing when or where or how much collateral damage is going to occur. So the best answer is to take control.

If you have more than 50 home inspections under your belt, you already have developed some intuition about mold. Simple things come to mind, especially related to water. Mold needs water or moisture to germinate and colonize indoor substrates. A house with a leaky roof, window, hot water heater, shower, etc. is going to have a mold problem; the extent of the problem depends on how large of an area the water intrusion is affecting and how long it has been going on. Larger and longer equals more mold, while a small area and shorter duration will equate to little or no mold. You’ve all spent time in dank basements and nasty crawlspaces where the humidity is out of check and that musky, moldy funk saturates your olfactory cells. You have seen the fuzzy surface mold in those areas that produce that odor. You’ve seen green, black and yellow blotches on drywall behind washers with leaky hoses. You’ve seen leather shoes

Edward Sobek is a PhD microbiologist with 20 years of laboratory and field experience. Dr. Sobek specializes in microbial and chemical issues affecting the built-environment. He and his team at Assured Bio Labs have tackled everything from viral outbreaks in medical facilities, moldy manufactured plastics, Legionella investigations to formaldehyde off-gassing in building materials. They have diagnosed mold and bacteria issues in hundreds of homes, commercial properties and complex manufacturing settings. He has worked on odor and chemical contamination in both residential and commercial properties. Dr. Sobek is also the founder and President of Assured Bio Labs, LLC. Assured Bio is an AIHA accredited and CDC Elite laboratory. Home inspectors prefer Assured Bio Labs because of their friendly and knowledgeable staff, superior technology and fast turnaround time.

34 Working RE Inspector Winter 2016

in closets with a nice blue fuzzy covering that you know has nothing to do with fashion. You already have enough innate knowledge of mold to start screening.

You already have enough innate knowledge of mold to start screening.

Safety First Whether you decide to begin screening for mold or not, I urge you to start protecting your health during a home inspection. Too many inspectors refuse to use personal protective equipment on an inspection. You are the most important person in your business. If you get sick the bills go unpaid, you lose business, and your number one attribute—your health—is at risk of permanent damage.

I recommend that you buy a box of comfortable N95 masks. Take some with you when you enter a home.

Put the mask on immediately if you go into an area of a home like a basement where you can see mold or the air has a musky odor. Chronic exposure to high concentrations of mold may lead to a variety of health problems.

Scientific studies have shown that chronic exposure to elevated mold indoors significantly increases the risk of adult-onset asthma. Chronic sinus infection is another documented outcome of continued mold exposure. It is called fungal sinusitis. Protection is key. Follow these three rules. 1) If you smell musky, dank odors, or see suspected mold growth on surfaces, put on your N95 respirator. 2) Always wear your N95 in non-living areas like crawlspaces and attics. 3) Be kind: if you’re going to put a N95 on and someone like an agent or homeowner is walking with you, always offer them one too. If they decline, the risk is on them, not you.

Mold Screening I like to divide mold screening into conditioned and non-conditioned spaces. Conditioned space is living space. It is where occupants spend most of their time: bedrooms, dens, living rooms, kitchen etc.

Unconditioned spaces have no heat and air, like crawlspaces, attics and garages. The objective of a mold screening service in the living space is to determine if the airborne concentration of mold is elevated. Since you’re going to be going through the entire house for your standard inspection, it’s easy to combine the mold screening service at the same time. You are going to collect air samples in the conditioned space to determine airborne mold spore concentrations. You will also collect an air sample outside of the house to compare to the indoor.

In non-conditioned spaces, only collect samples from surfaces that you believe have suspect surface mold. Do not collect air samples in a crawlspace; it’s not a living space and will only end up confusing all parties involved.

Too many factors outside the control of the homeowner can lead to airborne mold in a crawlspace. Always use the phrase “Suspect Surface Mold” when discussing visible mold. That dark area could be a cola stain; it could be anything. Never state that “surface mold is present” unless and until you have a confirmation report from a laboratory accredited by the American Industrial Hygiene Association (AIHA).

Labs For those home inspectors eager to add a mold screening service, they first need to find a home inspector friendly AIHA-accredited laboratory (such as Assured Bio Labs, LLC.). Look for one that caters to inspectors, that teaches courses approved in your state, and has technical field scientists on staff who conduct high-end residential and commercial mold investigations. Second, you are going to need a sampling kit that includes a sampling pump, tripod, swabs, air cassettes etc. The lab will set you up with everything you need.

Air Sampling To determine if mold is at elevated levels indoors, the indoor airborne mold concentration is compared to the outdoor concentration. Higher concentrations of water-intrusion mold inside equates to an elevation.

However, for reliability, a representative air sample is required. A single location inside plus a single location outside is not adequate. A composite sample of the whole living space, from multiple locations, is required and likewise a composite sample of the outside air surrounding the home is necessary. Subsampling using mold testing kits both inside and outside gets the job done. It provides a single composite inside sample to compare to a composite outside.

Collection

I recommend that you subsample five locations in a home with a standard mold testing kit, although the procedure may vary depending on the test kit you are using. That will provide a robust representation of the air inside the home. With another mold test kit, collect a composite outside sample from three orfour locations around the home. Remember you are just screening. If mold is elevated anywhere in the house it is a problem. page 40 

Working RE Inspector Winter 2016 35

Industry News Colorado Vetoes Licensing Bill Over 30 states have some form of home inspector licensing requirements, which typically involve would-be inspectors having to take a series of classes, pass an exam, and stay up-to-date by taking continuing education classes every few years. Some require the inspector to carry E&O insurance.

However, a number of states continue to hold out against home inspector licensing. Just last year in February 2015, Colorado’s Senate Business, Labor and Technology Committee, on a narrow 5–4 vote, shut down a bill that would have required Colorado inspectors to obtain licenses along with completing continuing education, passing an exam and criminal background checks.

Ed Hardey, Chairman of the Aurora Association of Realtors, argued that inspectors are “the only party in a real-estate transaction who is unregulated and given unfettered access to a person’s home.” Hardey’s comments may have been a veiled reference to an alleged sexual assault of a 14-year-old girl by a home inspector in 2014, a scenario which Senator Nancy Todd argued would have been prevented if Colorado had a state licensing board regulating inspectors.

Ultimately, the state senate decided against passing the legislation. Senator David Balmer, head of Colorado’s Senate Business, Labor and Technology Committee, argued that “the free market is already regulating home inspectors and I think can continue to regulate them.” Senator Tim Neville, who also voted against the bill said that “licensure won’t safeguard homeowners in most situations, and that a profession is protected by the good faith of the people who are in it.”

Nick Gromiko, Founder of InterNACHI, explains InterNACHI’s position on licensing and offers a unique perspective on how licensing affects both new and experienced home inspectors. “Because about half of our members are in favor of licensing and half of our members are opposed, InterNACHI takes no formal position on it. I can tell you that licensing doesn’t reduce the number of inspectors. That isn’t a position or an opinion; it is simply a fact. Licensing also doesn’t increase fees for inspectors.

What licensing does is create a clear path for someone to enter the market, where prior to licensing, it is difficult to capture market share from the strong, veteran inspectors who have earned it over time. When the state issues licenses, everyone goes back to square one. The newbie, fresh out of school, waves the same state-issued credential (license) that the veteran has. It gets worse. Agents, to avoid negligent referral claims, then begin pointing to the state list of licensed inspectors when they refer their consumers to a home inspector. The state makes no distinction between licensed veteran inspectors and licensed newbies. Therefore, licensing benefits newbies trying to break into the market, and harms veterans trying to defend their market share,” says Gromiko.

However, those in favor of licensing made a series of passionate arguments on why licensing is necessary.

In its letter to the state house of representatives, CAR writes that “as the only participant in a real estate transaction who is unlicensed, home inspectors are not subject to criminal background checks, standardized pre-licensing education, nor continuing education.” CAR writes that the bill is “vital” in order to protect their clients through a home buying/selling transaction.

Because InterNACHI headquarters are in Colorado, Gromiko says that InterNACHI actively engaged the Office of Policy to discuss the licensing requirements and to ensure that all inspectors with the Certified Master Inspector (CMI) professional designation from InterNACHI would be grandfathered in to the licensing program if the bill passed. Ultimately, Colorado failed to pass the inspector licensing law and remains an unregulated state for inspectors. —Isaac Peck, Editor

The effort to pass the legislation and make Colorado a mandatory licensing state had been in the making for years, involving a number of professional associations and stakeholders, including the Colorado Association of Realtors (CAR), the International Association of Certified Home Inspectors (InterNACHI), the American Society of Home Inspectors (ASHI), and National Association of Home Inspectors (NAHI).

36 Working RE Inspector Winter 2016

Drones Gain Popularity Drones are increasingly being used by real estate professionals. While real estate agents focus primarily on using drones to capture the glory and splendor of a property, inspectors prefer to use drones to uncover a property’s defects. A number of inspectors report using drones to do roof inspections,

arguing that the use of drones can prevent an inspector from injuries by helping them avoid dangerous situations. Popular drone models with mounted video equipment are now relatively inexpensive, with some available for purchase for less than $200. One concern among inspectors is that the use of drones for commercial purposes, which includes home inspections, remains illegal without the consent of the Federal Aviation Administration (FAA), which is still developing standards for commercial use. However, the FAA’s lack of approval isn’t stopping home inspectors from uing drones. Glenn Fricke, a home inspector in Florida, says “It’s kind of like speeding in your car, you’re not going to have FAA drone police on every corner. I have yet to hear of any home inspector getting fined by the FAA.”

Inspector Wins Frivolous Lawsuit

Minnesota Requires License to Test Radon

A recent New Jersey court case, Vorhand v. Guinan, et al., delivers good news to home inspectors who worry about facing frivolous lawsuits. The case originated when a failed real estate transaction in New Jersey prompted an enraged seller to file a lawsuit against both the buyers and home inspector involved. The suit alleged that the concerns of the buyers, which led them to withdraw from the contract, were exasperated by the inspection report which noted potential issues with the home’s foundation and structure.

Despite there being no contract between the home inspector and seller, the seller alleged that the inspector was negligent in performing the inspection and owed damages.

The court ultimately dismissed the seller’s claims and granted the motion for sanctions against the seller.

The seller was then forced to repay the home inspector for legal fees and costs incurred in defense. In a press release on the case, attorney Joseph Denneler, counsel for the home inspector defendant, writes, “Although not normally sought or granted, sanctions for frivolous litigation are an effective tool to offset the costs of frivolous claims in home inspection and other professional liability matters.”

Minnesota joins a handful of other states that require licensing/certification of radon testing professionals.

Minnesota inspectors who test for radon as part of their inspection, or offer it as an additional service, will now need to get a radon testing license due to the recent passing of the Minnesota Radon Licensing Act. The Act requires a radon testing license for any “person, firm, or corporation that sells a device or performs a service for compensation to detect the presence of radon.” Radon is the second leading cause of lung cancer in the United States. Radon comes up from the soil into houses in certain locations and is only a risk in enclosed spaces. Beginning on October 1, 2017, anyone who tests for radon will need to apply for an annual license. The annual fee for the license will be $300. The irony for inspectors is that while radon professionals will need to be licensed in the state, the home inspection industry in Minnesota remains unregulated.

InspectorAdvisor.com Answers Your Tough Questions Inspectors can now get their tough home inspection questions answered thanks to InspectorAdvisor.com.

InspectorAdvisor.com is an on-demand inspection support service hosted by OREP and moderated by veteran home inspector, code compliance expert and litigation consultant Jerry Peck. The service provides inspectors with timely answers to their tough technical questions—in plain English! The site notifies all subscribers when every new question and answer is posted so everyone learns from each other. This exclusive on-demand service is only $59 annually and free to those who purchase their insurance through OREP.org as part of the OREP Professional Support Network. The service has a money-back guarantee. Visit InspectorAdvisor.com for more.

Working RE Inspector Winter 2016 37

Professional Marketplace E&O/GL Insurance from OREP Broad Coverage, Peace of Mind Complete coverage should never be optional, according to David Brauner, Senior Insurance Broker at OREP. “If you want to do the best for yourself, your family and your business, be sure to choose a professional insurance policy that will protect you adequately should the unexpected happen,” Brauner says. “A broad policy covers you for the threats that you can anticipate as well as the unexpected ones that you don’t see coming. A broad policy covers all the bases and keeps you safe.” The OREP E&O insurance program includes Errors and Omissions, General Liability, Radon, Termite/WDI/ WDO, Lead Paint, Pool & Spa, EIFS/Stucco, Indoor Air Quality Testing, Green Building Inspections, Infrared Thermography, Rodent inspections and more. Mold and Septic/Water testing are available for a small additional premium (most states).

The carrier is “A” Rated and Admitted in most states. Prior Acts, multiple inspectors, commercial, additional insured for agents/referring parties and much more are included.

Minimum premiums begin around $1,000. “First Defense” defends and protects insureds against meritless and frivolous complaints before they take root, saving inspectors a deductible expense, higher premiums and a negative claims history. All insureds enjoy automatic membership in the OREP Professional Support Network ($95 value), which includes free, on-demand technical support, contract review, discounted approved CE, Working RE magazine, corporate discounts on office supplies, technology and more. OREP members also qualify for a deductible forgiveness option. Visit OREP.org. Or call toll-free (888) 347-5273. David Brauner Calif. Insurance License: #0C89873.

Home Inspector Contracts – Manage Risk Nationally recognized home inspector attorney Joe Denneler adds a layer of protection to your inspection business by providing inspection contracts written to the home inspection standards applicable and specific to your state. OREP insureds/ members enjoy a 25 percent discount on this essential service.

This service is part of the OREP Professional Support Network: email isaac@orep.org for your discount code.

Save on Office Supplies, Telecom and More Corporate savings is a little-known but significant cost-saving benefit of being an OREP insured/member. OREP Insureds and members of the Professional Support Network save money with Office Depot, Staples, Dell, FedEx, UPS, Sprint, Verizon, AT&T, travel, rental cars, and more. The program is free. Rod Lopez, an OREP member from New Jersey, says that he saved over $100 recently with the discounts at Staples and Office Depot. Cynthia Traylor, from House Calls Home Inspections, in California, said “We are saving 19% on our Verizon bill and I order all of our office supplies through the discounted Staples portal—they provide overnight, FREE shipping, even on Sunday orders! We are taking advantage and truly enjoying your program. Great job!” Large company or small, you can enjoy significant discounts on the goods and services you use most. The corporate savings program is part of the OREP Professional Support Network. To start saving today, contact the Editor, Isaac Peck, at isaac@orep.org.

Combine E&O Coverage and Save: Mortgage Field Services/Energy Raters Insurance OREP is a leader in providing E&O and general liability insurance to mortgage field services/ property preservation inspectors (MFS) and energy raters/auditors. Over the years, OREP has developed a low-cost, broad policy that insures most mortgage field service professionals at a cost they can afford. Policies that combine coverage for MFS and home inspecting can cut your insurance bill in half and allow you to expand your services and increase your income. OREP also provides low-cost E&O and general liability insurance to energy raters/auditors.

Policies that combine coverage for energy rating with home inspection also are available to save you money and help you expand your services. For a quick insurance quote for either mortgage field/property preservation or energy rating (or in combination with home inspecting) visit or call OREP.org today. Email: info@orep.org or call toll free: (888) 347-5273.

We answer the phone!

HomeBinder Gives Inspectors Marketing Edge Here’s a valuable and low-cost add-on service to help you land first-time clients. HomeBinder is a tool to help you set your business apart from the competition—inexpensively. We know it’s not always easy to distinguish your inspection services from the competition when bidding for work, but providing potential first-time clients with an impressive list of value-added services can make choosing your business a no-brainer. HomeBinder provides appliance recall alerts to homebuyers and serves as an “electronic filing cabinet” for them, allowing new homebuyers an easy and automatic way to schedule maintenance reminders, track improvements/repairs and receive ongoing recall alerts at no charge—courtesy of their home inspector (you!). Inspectors pay one low monthly fee for an unlimited number of recall alerts and HomeBinders to give away free to clients. OREP insureds get their first month of HomeBinder free and save $10 per month, every month on the HomeBinder service ($29.95 regular price for unlimited alerts). If you are an OREP member, email isaac@orep.org for your discount code and savings of over $100 a year!

For more on HomeBinder, please see pg. 29.

38 Working RE Inspector Winter 2016

Part of the OREP Professional Support Network

OREP Insureds Qualify for $1,500 Deductible Forgiveness OREP has partnered with the Inspector Services Group (ISG) to offer insureds deductible forgiveness on their E&O policy—a cash credit up to $1,500. Inspector Services Group (ISG) is a leading provider of inspection warranties and recall checks. To qualify for deductible forgiveness, an inspection transaction needs to include two products—a RecallChek and a 90 Day Warranty, both of which must be submitted to ISG. Under this special program, RecallCheck and the 90 Day Warranty are available to OREP inspectors at little or no cost.

OREP inspectors benefit in several ways. First, these products are a valuable additional service for clients that helps set OREP inspectors apart from the competition. Second, if there is a claim on a covered inspection, as described above, ISG will save inspectors money through the deductible forgiveness program up to $1,500 (within one year of the inspection date).

Inspectors must have an active OREP E&O policy in place at the time of the claim and be a client of ISG. Third, according to OREP Senior Broker David Brauner, the program takes the hassle off of an inspector’s plate. “Under this program many of the nuisance claims that inspectors face now will be handled professionally by the experts at ISG, under the warranty program, and not have to be dealt with by the inspector.

This saves inspectors a possible deductible expense, a ding on their claims history and, in many cases, a great deal of aggravation from dealing with an issue that is more properly covered under a home warranty, rather than an E&O policy,”

Brauner said. “It also gives OREP insureds a leg up because they are providing two valuable services to their clients at little or no expense, in most cases. And if it can’t be handled by the warranty and turns out to be a legitimate E&O claim, deductible forgiveness kicks in up to $1,500,” Brauner said. OREP members can get all the details at InspectorServicesGroup. com or email Nathan@NathanThornberry.com for additional member savings. You may call Nathan, Mike Doerr, Tim Clark, Brandon Wells, or any of the ISG team at (800) 544-8156.

InspectorAdvisor.com Answers Your Tough Questions Inspectors in the field can now get their tough inspection questions answered at InspectorAdvisor.com. InspectorAdvisor. com is an on-demand technical support service hosted by OREP, with Jerry Peck presiding. Peck is a veteran inspector and builder, code guru and litigation consultant (see pg. 24 for more). InspectorAdvisor.com provides inspectors with timely answers to their tough technical questions—in plain English!

All subscribers are notified as new questions and answers are added, so everyone learns from each other. This exclusive on-demand technical support service is free to OREP insureds/ members and $59 annually for all other inspectors. Now you don’t need to guess how to resolve tough technical and other inspection issues or rely on questionable advice. This service is less than $5 a month and comes with a money-back guarantee. InspectorAdvisor.com is part of the OREP Professional Support Network. For login details, email isaac@orep.org.

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Is it old fashioned to answer the phone? Maybe. But in an age when companies work hard to avoid talking to you, we answer when you call and more.

We save you money, provide you the very best coverage available and all OREP Insureds enjoy automatic membership in the OREP Professional Support Network, which includes guaranteed delivery of Working RE magazine, InspectorAdvisor.com, Corporate Savings, discounts on continuing education, contract review, deductible forgiveness and more! “First Defense” defends and protect insureds against meritless and frivolous complaints before they take root, saving inspectors a deductible expense, higher premiums and a negative claims history. What are you waiting for?

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Working RE Inspector Winter 2016 39

page 28 (Infrared Thermography)

page 35 (Mold Testing)

Increased Liability Nearly all home inspectors utilize clear, well-written and well-vetted statements of work (or they should!).

Talk with whoever prepared your current inspection contracts about adding the short verbiage required to define that your use of infrared is no different (better or worse) than what is defined by a visual inspection. It is a snapshot in time and does not determine whether an issue was or was not present, only that it may not have shown itself adequately at the time of the inspection. In short, using an infrared camera to either augment your current home inspection or providing a separate thermal inspection service does not increase your likelihood of being sued if you properly account for it in your contract’s statement of work. Talk to a peer you trust who has added infrared service to his offerings to see how it is working for him/her. Also, many E&O insurance programs now include Infrared Thermography coverage at no extra charge, such as OREP.org.

You are not sourcing the mold reservoir. Unconditioned spaces are easy. These are samples collected with special swabs from surfaces where you suspect mold colonization. For example, if sampling a crawlspace you do not need to sample every spot, just a representative area, and the same goes for attics. Note the locations sampled. Also estimate how much suspected mold is present in the unconditioned space. Is it 10%, 50% or 95% of the cross beams in a crawlspace? If the laboratory data confirms that your samples are mold, then report the concentrations along with how much of an area the mold is colonizing and the locations sampled.

Keep in mind that while the cameras are very easy to use, there can be complex circumstances surrounding certain applications and situations. On the other hand, having a powerful analysis tool like an IR camera may help you identify problems that can be easily located with this proactive, non-contact and non-destructive technology. Thermal images communicate quickly and effectively to both you, the inspector, and to your customers. And they provide a useful record of the presence or absence of problems! WRE

*Missing insulation can be spotted from exterior of the home.

*Circuit Breaker: hot wires can indicate overloaded circuit. *Example of a larger home that is exfiltrating (losing) a significant amount of warm air that is pouring out of the soffit at the top of the house.

40 Working RE Inspector Winter 2016

Pricing How much should an inspector charge for the screening service? Let’s do some numbers. In general, the supplies and analysis are going to run about $125 to $150 dollars per screening. Also take into account the initial equipment setup cost and annual cost of E&O insurance (mold testing can be added very inexpensively with most insurance programs, such as OREP’s). Also consider your market. Are you working in Nashville on million-dollar homes or in the average American suburb?

A larger home is going to require more subsamples to obtain a representative composite. For the average 2,000 square foot home I recommend $295 on the low end up to $375 on the high. Remember, you are not offering a mold inspection but a screening service. It’s a huge difference, so make sure the client understands that in writing.

The objective of a mold inspection is to 1) document the location(s) of the mold contamination in the residence, 2) identify the root cause of the contamination, 3) write a detailed remediation protocol in order to remove the mold, stop the source of moisture, and restore the home back to a balanced healthy environment with respect to mold concentrations, and 4) conduct post-remediation verification testing to ensure that the remediation protocol was completed successfully.

Mold screening, on the other hand, is only designed to determine if a home has an elevated mold condition or not. A complete mold inspection on the same size house is going to range from $850 to $2,000, depending on the market. That should not discount the value of a screening. For a relatively modest amount of money, your client is receiving a high-value service that they can count on to make an informed decision that involves a large sum of money tied up in the home. WRE

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