Warranties / Guarantees

HOME INSPECTION “GUARANTEES”:

DISADVANTAGE MARKETED AS ADVANTAGE

There are essentially two aspects to “Guarantees” and “Warranties” offered by some home inspection companies:

They offer to provide coverage and pay up to an aggregate maximum, in most cases, of about $500.00 per “Guarantee” or $1500.00 per element with respect to any negligence on part of the inspector. They also restrict any claims that might be brought against the home inspector for negligence to what is payable under the “Guarantee” and may restrict any dispute over a claim to arbitration before someone accredited by an American Association which may not have accredited members readily available.

Coupled with the liability limitation and arbitration provisions, the “Guarantee” really is a significant disadvantage being marketed as an advantage. People who sign up for a home inspection based on the existence of such “Guarantees” are really just restricting the opportunity to seek recourse from negligent home inspectors to an unrealistically low amount.

It must be recognized that appropriate due diligence according to all known pre-purchase or pre-sale inspection standards is not to be construed as technically exhaustive; how much credibility can there be in offering a 90 day “guarantee” on an item of which the manufacturers warranty expired 5 years ago? The cost of information required to provide a credible “Guarantee” would outweigh the usefulness of the information and, in fact, would be a material detriment to the orderly and timely completion of the real estate transaction. Therefore, the object of a pre-purchase home inspection should be to reduce the uncertainties about unknown physical deficiencies of components, not to guarantee the life of the components.

Throughout an inspection, inferences are drawn that cannot be confirmed by direct observation, consequently no credible “Warranty” or “Guarantee” can be offered. Unfortunately, unwary potential customers may see these “Guarantees” as a tremendous advantage, when in fact, they are probably a liability limitation vehicle disguised as an advantage.

We at EXCEL Inspection Service Ltd. are not aware of any insurance company that provides insurance on the structural aspects of a building other than accidental, vandalism, and climatic conditions.

We strongly recommend that a legal opinion be obtained on any type of “Guarantee” being offered by a home inspection company before recommending or engaging their services.

At EXCEL, we stand behind our inspection reports 100% with no time limits and no deductibles, as any company offering a professional service should.

™ EXCEL Bldg. Inspection & Consulting is a Trademark the property of "Eldon Schechtel"