The Checkbox:An Inspector’s Electronic Signature Cautionary Tale

The following is a real home inspection claim from our archives. To protect the insured’s identity, all identifiable characteristics from this claim—including names, associations, and locations—have been altered or removed.

Five years. That’s how long one California home inspector had been using their home inspection software to schedule appointments and obtain signed pre-inspection agreements. The platform boasted that it collected pre-inspection agreement signatures and stored contracts. After signing up, the inspector had no reason to believe the software was doing otherwise.

But when a larger company acquired the inspection software system, things changed. Customer service halted, and the inspector searched for other solutions. After switching to another software, the inspector went back to the old one to retrieve past copies of agreements. They were hit with two big surprises:

1. They couldn’t easily obtain copies of their submitted agreements.
2. The software never collected electronic signatures—just a box for clients to check.

Panicked, the inspector contacted the company that acquired the software. The company’s president said the software’s operating system and database were “super outdated,” so much so that it could crash at any moment.

“I would find another solution ASAP,” the company president told the inspector.

Unsure what to do, the inspector called us, their insurance provider, for help.

After several meetings with the inspector, our carrier’s underwriters, and our claims team, we were able to find a solution: The inspector could still see individual appointment details, contracts with check marks indicating consent, and confirmation emails confirming acceptance of the agreement. The claims team and carrier agreed that screenshots of all three could be combined in a court setting to provide proof of signature.

It took time, but the inspector was able to manually sift through every agreement from the last five years and save copies of the screenshots before their old software crashed. The inspector was relieved we could help them find a solution before it was too late.

Key Takeaways From This Electronic Signature Cautionary Tale

What can you learn from this home inspector’s experience? Here are a few takeaways.

1. Look for a true e-signature.

E-signatures, or electronic signatures, are digital approvals or acceptances of documents and transactions. By typing their name in a box, selecting a scripted font of their name, tracing their signature with a mouse or their finger, or uploading an image of their handwritten signature, clients can sign your home inspection contracts on their internet browsers instead of in person.

Most home inspectors use e-signatures rather than wet-ink signatures. Some reasons why:

• Yes, electronic signatures are legal. Thanks to the Electronic Signatures in Global and National Commerce Act (E-Sign Act), electronic signatures are just as legally binding as handwritten signatures.
• E-signatures are faster and more efficient to obtain than paper-based signatures. They also enable inspectors to get signatures prior to the start of their inspections—an essential step for enforceability and insurability—more easily.
• When an electronic signature goes the extra mile of being a digital signature, it provides cryptographic proof of the signer’s identity.

What Makes an E-Signature Legally Valid?

But not all e-signatures are created equal. For an electronic signature to be admissible in court and with your insurance provider, it must:

• Be the signer’s full name.
• Include the date of signature.

Are checkbox agreements legally enforceable for home inspections?

Not by themselves, no. In this inspector’s case, the software was only having clients click a checkbox. The inspection software needed to obtain additional information for the checkbox to be enforceable, including:

• The signer’s full name.
• The signature date.
• A timestamp.
• An IP address.

Bonus points if the software collects additional verification data, like proof of digital identity.

So when you’re shopping for home inspection reporting software, don’t settle for checkboxes alone. Make sure you’re collecting all the information necessary for true, enforceable e-signatures.

2. Trust (but verify).

A diner may say they have the world’s best cup of coffee, but that doesn’t mean they do. (Sorry, Elf.) The same goes for home inspection software companies. Just because they say they have certain features—like electronic contract signing—doesn’t mean they do.

So always confirm. How can I test if my inspection software collects valid e-signatures? 

Run a test by sending an inspection agreement to a personal email, family member, or friend, and then review what information they collected. If you’re not getting a true e-signature, find another product.

3. Don’t put all your eggs in one basket.

Your home inspection report software may have all the bells and whistles. But that doesn’t mean it’s impervious to failure. Just ask NASA.

In 1962, the Mariner 1 space probe veered dangerously off course. NASA had to blow it up just 290 seconds after launch to prevent it crash-landing to earth. The cause of the malfunction: a very simple software error that cost $169 million in today’s dollars.

No software is perfect—including your inspection software. So don’t rely on it alone to store your inspection agreements and reports. 

What’s the best way to store inspection agreements and electronic signatures? How long should I store inspection agreements and contracts?

Store copies of your signed home inspection contract and reports on an external hard drive or in cloud storage so you have your important inspection assets in more than one place.

And keep copies of inspection documents for at least five years. The longer, the better. We all shake our heads when a claim for roofing issues comes in 15 years after the inspection. (Seriously, we’ve seen it with our own eyes.) But it does happen.

For more opinions and information about contract storage, click here.

4. Use an agreement you can trust.

Having a blank for an electronic signature and a date is a pretty low bar for your pre-inspection agreements. Expect and get more from your home inspection contracts by using our model agreements. 

Vetted by claims professionals and attorneys, current with the latest case law and state requirements, our home inspection agreement templates work harder to defend inspectors than any other. Click here to learn more and get your copy.