Having done this for the last 6 years I can say that it can pay good money BUT.....you are at the mercy of the Real Estate market and are law suit bait because you are insured. There are lots of unethical people out there that would just love to use your insurance money to remodel their house.
There are two schools of thought on this E&O idea. (I have it)
If you have it, you are bait since you have the "deep pockets".
If you don't have it you could loose everything you own.
Nice choice huh?
There is an option, Incorporate your business. That puts a stopper on getting to your personal assets. Don't have anything much in the corp name and it doesn't become a target. Lawyers are expensive and hungry. They will only go after something if there is something to go after. If you got nothing, they usually won't bother. No profit in it.
Always inspect to whatever standard is followed in your area. Do not exceed that standard if you can help it. Doing so opens the door.
Have a good contract that clearly spells out what you do and
do not do.
Provide a copy of the Standard to every client and explain it before doing an inspection. Make them sign and initial it where needed
before doing the inspection.
CYA is the best policy.
The Home Inspector is a "Generalist" regardless of any license he holds. He is not wearing that hat during a HI. Do not, repeat, DO NOT exceed the SOPs you are following. (Go to the ASHI site and look over their SoPs and Code of Ethics. It's a good place to start.)
the HI's job is to observe and report.
not to diagnose and tell them how to fix something. Doing that will get your tit in a wringer most times.
Defer to the "specialist" that is licensed in that trade to get "in-depth on that system". That is NOT your job as an HI.
The best analogy I can give you (which I give to my clients) is that you are like their primary care physician. You do a "general check out" and then refer to the specialist for further diagnosis and correction.
I have survived over 2500 inspections in the last 6 years without getting sued. Must be doing something right. I have paid out some money to make a few assholes go away.
Cheaper than paying the lawyers.
Good Luck
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