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InspectorPro: Pioneers for Home Inspector Insurance

by Contributing Writer
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As a home inspector, you’re used to being the scapegoat. If defects are discovered after your inspection, if a property sale falls through, or if a subcontractor’s bill is too high, you often receive the blame (and the claim). In fact, we estimate that over half of all home inspectors receive at least one claim during their careers.

Of those claims, about 80 percent are highly exaggerated or without merit. Even so, how your insurance company handles your claim can spell the difference between celebratory cheers and a negative outcome.

In 2009, Citadel Insurance Services, LC saw a need in the insurance industry. Across the nation, there were tens of thousands of home inspectors protecting the millions buying and selling homes every year. As they do today, these inspectors were catching dangerous defects to safeguard American families. They were crawling under homes, traversing roofs, and testing appliances to help their clients make educated buying and selling decisions.

But who was looking out for them?

Revolutionizing Home Inspector Insurance

Back in 2009 (and even now), there were not many insurance companies catering to the home inspection industry. Sure, lots of agencies offer cookie-cutter professional and general liability insurance policies. But they don’t understand the inspection industry’s unique risks.

Home inspectors were looking for a custom insurance solution. That’s when InspectorPro Insurance was born.

Utilizing a construction draw inspection policy as their template, Citadel created a professional and general liability policy for home inspectors. Founding Partner Anthony Eardley used his rich history of developing niche insurance products to create the program. Brokers Will Colton and Aaron Menlove joined soon after. Together, they began steadily forming lasting relationships with inspectors from around the country— many of whom were InterNACHI members.

“We have always been a relationship-based company. We were never just selling insurance. We took the time to have quality conversations,” Colton said. “We learned very early that we needed to understand what inspectors’ needs were, and we needed to constantly adapt to meet those needs.”

In its first year, InspectorPro insured a few hundred inspectors. By their second, they insured over a thousand. Inspectors appreciated InspectorPro’s industry-focused solutions.

In 2012, InspectorPro created a new, custom policy that defined inspection services and agreements. They offered more endorsements for add-on inspections, like pool and spa and sewer scope. And, to give inspectors the best possible experience, they began to take a hard look at claims management.

Getting Claims Into Expert Hands

No one wants to use their insurance. But if you must, you want a provider that has your back.

Many insurers run into the same problem: They don’t know inspectors. It’s not that they don’t want to handle cases in a way that benefits their inspector clients. They just don’t know how.

By comparison, InspectorPro knew that offering specialized claims handling was the key to transforming okay service into great service. Great service quickly grew from a goal to their non-negotiable standard.

To bring their vision to life, InspectorPro hired their own claims team. Unlike other adjusters who flit between different industries and claim types, InspectorPro’s claims team only works with home inspectors. Their focus on the field has made them experts in the industry. They know what works (and doesn’t) in attorney letters, phone calls, courtrooms, and contract provisions. They have their shortlist of lawyers and arbiters who get the best outcomes for inspectors

In the last decade, they’ve faced thousands of home inspector claims across all 50 states. And those claims have taught them a lot.

Today, InspectorPro’s claims team is so efficient that most of their claims close for less than the cost of the inspector’s deductible–often no cost at all. With their reputation built on superior claims handling, InspectorPro gives their clients peace of mind.

“A client bought a house that was poorly maintained and, some months later, wanted $10,000 from me,” said InterNACHI CPI Paul Cummins of No Surprises Home Inspection NOVA-DC. “InspectorPro spent weeks preparing a point-by-point rebuttal at no cost to me. In addition to being a very nice testament to the quality of my work, I felt like my big brother had just shooed away a bully.”

Stifling Complaints Before They Turn Into Claims

Not everyone was a fan of InspectorPro’s growing success.

Lawyers were an unlikely antagonist. Aiming to win inspectors, some spread false information. They claimed insurance companies were eager to settle or accumulate legal fees, charge deductibles, and increase premiums. They told inspectors that having insurance made them targets.

These lawyers also discouraged inspectors from reporting claims, putting them in violation of their policies’ reporting requirements. And when inspectors employed the attorneys for help battling clients’ grievances, they paid hundreds of additional dollars for boilerplate template letters that exacerbated conflicts, rather than resolving them. Claimants’ attorneys even caught “home inspector lawyers” responding to claims in states where they weren’t licensed, leading many claimants to increase their demands.

Many of these claims crossed InspectorPro’s desks after the naysaying lawyers had failed. In response, InspectorPro developed one of the first and best pre-claims assistance programs in the inspection industry. Pre-claims assistance gives inspectors free help responding to unhappy clients to prevent them from demanding money or contacting an attorney. When inspectors submit qualifying pre-claims to InspectorPro, they receive personalized guidance and tools to de-escalate their clients’ complaints–without paying their deductible, a higher premium, and other extra fees.

“The pre-claims team really helps deal with those silly complaints that have no merit. They have always been friendly and helpful,” said InterNACHI CMI Jim Troth of Habitation Investigation in Ohio.

Since offering this service in 2014, InspectorPro has stifled 85 percent of complaints before they’ve turned into claims. The other 15 percent still qualify for up to 50 percent of their deductible for reporting the problem early.

Today, they handle close to 200 pre-claims every month. By nipping complaints in the bud, InspectorPro saves their clients precious time, emotion, and money–all without the need to pay for a separate complaint handling service.

Giving Inspectors the Power to Prevent Claims

Many of the claims and complaints InspectorPro was receiving had striking similarities. Claimants weren’t reading reports. They were finding out-of-scope defects and trying to pin them on their inspectors. There were even trends in the types of claims home inspectors filed each year.

In 2016, InspectorPro began publishing blog posts with risk management advice. That November, they published their first article utilizing claims data trends: Top 5 Claims Against Home Inspectors. In it, they revealed that water damage, roof issues, foundation defects, mold, and plumbing problems were the five most common types of claims year over year.

Thousands of inspectors read and discussed the article. Its facts and tips were featured in numerous convention presentations and on industry podcasts, including the InterNACHI Home Inspector Podcast.

“InspectorPro does an outstanding job educating their clients to avoid claims. They consistently relay information about establishing expectations, preparing solid inspection agreements, and reporting procedures.  The monthly newsletters offer valuable tips on protecting inspectors from physical harm as well as frivolous claims,” said InterNACHI CPI Thomas Wells of Home Sweet Home Inspection Services, LLC in Florida. “The best protection from potential claims is preparation before the inspection even begins.  InspectorPro offers us that peace of mind.”

Today, InspectorPro’s risk management tools work to change the litigious culture plaguing home inspection businesses. Their blog includes over 200 articles on wide-ranging industry topics, like:

All articles are free on InspectorPro’s blog, with new articles published on the first and fifteenth of each month. To never miss a new post, subscribe to InspectorPro’s newsletter.

Growing the Team

As more inspectors turned to InspectorPro for risk management expertise and insurance services, the original team realized it was time to grow.

What started as a handful of brokers and support staff grew into a strong unit of 28 licensed insurance professionals. That’s over five times the staff size of competing brokerages, and it doesn’t even include the separate claims team mentioned earlier. InspectorPro performs most underwriting in-house, which allows them to send quotes, adjust coverage, create certificates, and answer calls and emails quickly and efficiently.

“I called and emailed several companies for quotes. InspectorPro was in touch immediately. I had a quote but decided to wait and see what the others had. … Still waiting to hear back. I can only imagine how responsive they will be when I need something. InspectorPro has my business,” said InterNACHI CPI Kevin Shonkwiler of Pinnacle Home Inspectionsin North Carolina and Virginia.

While InterNACHI CPI Manuel Martinez of Big River Property Inspections in Iowa didn’t start with InspectorPro, he made the switch to get better customer service.

“I had a horrible experience with my former insurance company. Actually from the day I got a quote, I was basically worried about being talked to like I was an idiot any time that I would call or email. …The final straw was when my agent didn’t change my banking information for my policy and my insurance was canceled,” Martinez said. “I called InspectorPro to quickly get a quote and got wonderful treatment. They were able to set me up quicker than it took my former agent to return my call and explain what happened.”

In 2020, InspectorPro partnered with Bob Pearson, who developed one of the first reasonably priced and comprehensive inspector insurance programs in the late 80s. Having performed 10,000 home inspections himself before becoming an insurance broker, Pearson has an unparalleled understanding of inspector pain points.

“InspectorPro has revolutionized home inspector insurance–especially with pre-claims assistance. There’s not another insurance company–homeowners’, automobile, whatever–in the marketplace today that is so proactive and so ready to take care of its customers,” Pearson said. “When you call us, you’re going to get your questions answered. When you have a claim, we’re going to take care of you all the way. It’s absolutely superior service.”

Developing State-specific Contracts

Back at Claims, InspectorPro identified another important trend: Inspectors’ contracts could make or break their defense. With the right provisions and information, inspectors could strike down and even dodge claims. Without these essential protections in their agreements, inspectors faced more claims, more refunds, and more expensive lawsuits. InspectorPro decided to level the playing field with their own contract.

Backed by their 15 years of claims handling experience, InspectorPro released their model pre-inspection agreements in 2021. By applying wisdom from recent claims, case law, and legislation, InspectorPro crafted state-specific pre-inspection agreements proven to succeed. They’re so confident in their agreements, they even give $1,000 deductible discounts to their insureds who adopt them.

“Before working with InspectorPro, I had to instigate my defense myself. I had to ask what was going to defend me in court and put it into my agreement,” said InterNACHI CMI Jerry Hardisty of Bluegrass Inspections in Texas. “With InspectorPro, I didn’t need to ask. They just gave me a contract they can defend me on. Having an agreement that I can trust and have confidence in is so vital. It’s peace of mind.”

InspectorPro: The Gold Standard for Home Inspector Insurance

While you do all you can to manage your risk, even a perfect inspection isn’t immune to a lawsuit. Don’t settle for insurance coverage that doesn’t meet your needs.

“Insurance is not all the same, and the time to find out you’re NOT covered is when you’re getting sued,” said InterNACHI CMI Russell Hensel of Comprehensive Building Consultants in Florida. “Give InspectorPro a call. It’s free. What do you really have to lose? You might just end up getting educated on why your present policy is cheaper. (It’s because it sucks!)”

Apply with InspectorPro today for a no-obligation quote for errors and omissions and general liability coverage.

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