We know it’s tough to understand all the insurance terms your carrier packs into your insurance policy. (Case and point: Do you know the difference between your provider and your carrier?)
Here at InspectorPro, we write broad policies, which offer more open-ended coverage than basic policies. If something isn’t explicitly excluded, and it’s within your policy’s definition of a home inspection, then it’s automatically covered. Common exclusions include:
- Improper licensure
- Warranty claims
Keep in mind that there is some coverage that you can add back with endorsements. Endorsements are amendments to your policy that modify coverage, usually by adding additional coverage or changing exclusions. That laundry list of specialty inspections in all your quotes? Those are optional endorsements, which means they aren’t included in your policy unless you add them. For a list of optional coverage available, go here.
In the case of endorsements, “optional” is not a synonym for “unnecessary.” Endorsements are essential for any inspectors going the extra mile and offering ancillary services with their basic inspection. Whether you’re inspecting for termites or radon, if you’re inspecting for it at all, you need to add the endorsement to receive insurance protection. If you’re not carrying the endorsement, you don’t have the related coverage—even if the claim is frivolous.
In fact, most mold claims are against inspectors who do not inspect for mold. That means most mold claims lack merit. However, to receive coverage for meritless mold claims, home inspectors must carry the mold endorsement. (You can read more about avoiding mold-related claims here.)
Even if your specialty inspection isn’t one of five most common types of claims, you may decide to carry the endorsement to avoid the cost of an uncovered claim. Ultimately, it’s up to you to determine what coverage you need to maintain peace of mind.
You can cancel your policy at any time by submitting a written request. If you cancel early, you’ll receive a refund for the remaining period you’ve paid for minus the minimum premium earned. (Usually 25 percent.)
Some things to consider before you cancel your policy:
Do I need the insurance to fulfill a requirement?
Many states have licensing requirements and regulations that affect home inspectors. In fact, some states mandate that inspectors carry a certain amount of insurance coverage to protect consumers. Check our state’s insurance requirements to make sure that you can cancel your policy and remain compliant.
Can I reduce my coverage instead of canceling?
Can’t make your insurance payments? Instead of canceling your policy, consider how you might reduce your coverage. For tips, contact your broker.
Can I afford to continue inspecting uninsured?
to our claims data, over 60 percent of home inspectors receive at least one claim during their careers. Claims can be expensive—especially when you’re footing the legal costs and potential payouts yourself. Can you afford to pay for claims if they arise?
Will cancelling my policy create a coverage gap?
Your policy with us is claims-made, meaning you need to have a current policy and continuous coverage for protection from claims. Cancelling your policy without starting a new policy could result in you losing your past inspection coverage. Even a lapse of a day between your policy cancellation and the start of a new policy could create a coverage gap.
Will my new insurance provider give me the same benefits?
Thinking of switching to another insurance provider? Make sure that they’re offering you the same benefits you’re getting from us. Most of our policies come with great perks, like pre-claims assistance, diminishing deductibles, and early reporting discounts. They also avoid common policy pitfalls, like sublimits and shared limits. Not sure if the competing policy you’re considering is up to snuff? Ask us for a free policy comparison.
Do I need to purchase tail coverage?
Planning for retirement? Interested in another field? Thinking about selling your business? Then you should consider purchasing tail coverage before you cancel your policy. Formally known as an extended reporting period (ERP) endorsement, tail coverage allows home inspectors to report claims for inspections that would have been covered prior to their last policy’s expiration. Learn more from our article “Tail Coverage: How to preserve claims coverage when you leave a franchise or the industry.”
If you do decide to cancel, we’ll be sorry to see you go. Just know that you’re always welcome to come back.
To submit a request of cancellation, contact your broker.