The Home Information Pack (HIP) debacle seems never-ending with the constant changes, from the removal of the Home Condition Report (HCR) to the delayed introduction to 1 August by the government. With the constant tooing and froing, one can be forgiven for being a tad exasperated by the whole affair and wondering what individual, or worse, committee was at the helm of the whole affair.
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While many in the industry are calling for an immediate cessation to the introduction of HIPs, those worst affected are those who trusted the government would follow through in its promise. Namely, home inspectors who have invested considerable time and money into training and HIP providers that set business targets based on a 1 June start date. They have been left up the creek without a paddle to say the least.
Insurance question
Adding to the issue is yet another potential problem that has been brought to light by CETA Insurance. It points out that there is no obligation for certified home inspectors to hold public liability insurance that would cover any damage caused during an inspection and is calling for all home sellers to check what insurance credentials the home inspector holds before granting access to their property.
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David Quick, managing director of CETA, says: “A home inspector could accidentally break a window, knock over a vase or put a foot through the ceiling while checking the loft. There are more than a million property transactions each year so inevitably problems will arise. The home seller needs to check this kind of damage will be paid for without having to claim on their own household policy.”
Quick also raises the point that only inspectors carrying out an HCR would require professional indemnity cover to pay for mistakes or negligence and as these are now optional, many people won’t take them up. He asks: “Does that mean there is no insurance requirement at all for home inspectors compiling a pack without a HCR?
“It seems amazing that there are not clearer guidelines and rules for those working in an industry that will quickly be worth millions of pounds a year and involve probably thousands of home visits every week. I have heard the organisations that certify home inspectors are strongly advising them to trade as limited liability companies to cap any potential losses, so it is clear they have some concern that costly mistakes will happen.”
Know who you’re dealing with
Martin Wade, director for Mortgage Options, comments: “I’m not one to pander to the blame culture and it wouldn’t cross my mind to check someone’s insurance. However, this underlines that you should always know who you are dealing with and only work with reputable companies that have the training and hold the necessary insurance. Yet, I imagine anyone acting as a home inspector will ensure that they have adequate insurance, as it’s a sensible thing to do. I’m sure the fact that it is not required outside of doing the HCR will be tightened up in due course.”
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Ray Boulger, senior technical director for John Charcol, adds: “This is a classic example where the government failed to get all the appropriate measures in place. Clearly, it is important that people have appropriate cover. Saying that, people let estate agents into their home without checking whether they have professional indemnity cover, but it is more relevant to energy assessors. The time people need to check whether assessors have adequate insurance is when booking the appointment. It’s too late when they turn up on their doorstep. It’s an important consideration and it ought to be a mandatory requirement for accreditation.”
No major headaches
Yet, Boulger does not believe it will cause major headaches in the future. He says: “If a company was to have an incompetent inspector, it could be a problem not to have adequate insurance and even good inspectors make mistakes. However, if a customer checks out they have insurance, it shouldn’t matter if they are competent or not. The reality is many home inspectors won’t be directly employed by the company consumers employ and it’s down to the company to have adequate cover, as the client has hired the company not the individual.
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“If the government had done its job, then people wouldn’t have had to do this and would take it as read. People need to be aware of the issue, but sooner rather than later, the government should make it a requirement for accreditation and then people won’t have to worry.”
The trials and tribulations that home inspectors face can only be compounded by failing to have professional indemnity insurance. It is an added cost, but one that could save an inspector a lot of potential problems in any future eventuality. Yet, with HIPs yet again in doubt of materialising, it remains to be seen just how many inspectors will stay the course in the end and require cover for a career consistently in doubt.
