Why You May Need Indemnity Insurance during a Building Inspection
If you have located a home and you are keen to own it, a pre- purchase property inspection is required. This is invaluable as it helps determine if you will proceed with the purchase given the condition of the property. You will also get to save lots of money as well when defects are identified. Having a pre-purchase property inspection is vital to ensuring both your happiness and safety in your new home and should not be taken lightly.
Choosing a building inspector requires a lot of research so as to get someone who is not only qualified but is accredited as well. One of the crucial aspects that you should consider is whether the building inspector has indemnity insurance. Many people who have hired a building inspector realise the importance of having adequate insurance right before the signing of the contract. An inspection is done visually and is non-invasive thus might not pick up on the problems that are well hidden. It generally looks for any notable defects, deterioration, significant maintenance issues and the physical particulars of the building.
What Me Worry?
The indemnity insurance the inspector has will protect you in case the inspection misses something in the report. This could range from failure to report any evidence of timber pests and defects, poor assessment to any damages to the building during a visit. This insurance enables a prospective buyer to hold the inspector to what he claims and protects against financial loss due to professional negligence.
Better to be Safe Than Sorry
It is important to make sure that the building insurance cover is up to date and determine what damages and legal costs are covered as well. Moreover, you should ask if there is any exclusion as some inspectors are not fully insured and do not cover all the relevant costs. Policies list certain conditions to be met, and you should carefully research if the inspection covers them. For one, time of the inspection should be within 12 months from when the policy was taken, the building is listed as a residential dwelling and will continue as such, and there should be no impending enforcement actions to be taken.
However, this does not thoroughly protect you thus you need to show up during the inspection. This not only helps you see areas that have been covered during the inspection but enables you to ask questions and understand more of the report. An inspection only takes a short time but is a worthwhile investment in the long run.