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Selecting the right E&O policy----better yours than mine! (part1)

By
Home Inspector with Charles Buell Inspections Inc.

It seems that lately I have had a string of issues come up where my opinion of the condition of something was vastly different from that of the "qualified" professional brought in to make further evaluation.

In itself this does not bother me all that much, because I would rather have the issue move from my E&O Insurance to theirs anyway.  

 

It does create issues when the agents start arm wrestling over the deal however.

For example on a recent inspection I pretty much shot, killed and buried a 26 year old furnace.  Now if the furnace is truly shot, the buyer's agent will usually be able to negotiate for a new furnace or for an allowance for a new one.  

When I have a furnace in such a condition my report recommendation might go something like this: The heating unit is 26 years old and as such is approaching or past its expected service life and is generally less efficient than a more modern unit would be.  I recommend factoring replacement of the furnace before the next heating season.  Comprehensive and invasive evaluation of the heat exchanger prior to the next heating season is necessary if this unit's service life is to be extended.  I recommend inspection and certification in writing by a licensed heating contractor if the unit is not to be replaced. Evaluation of the unit for Carbon Monoxide leaks is required as part of the overall evaluation of this unit if it is to remain in service.   The amount of corrosion inside the heat exchanger, considerable condensate and rust in the draft hood, the appearance of the burn patterns and the age of the unit warrant these concerns.  Installation of Carbon Monoxide detectors  throughout the home according to manufacturer's instructions is recommended.   

The first thing I saw when I approached the furnace was the black marking at the top corner of the unit.  This furnace had back-drafted so bad that combustion by-products had been venting through the opening at the corner of the furnace---into the basement.

Back-drafting furnace

With the cover off, I think that even a novice should be able to see the extensive discoloration and rusting inside the furnace compartment that is the result of the back-drafting furnace.

Back-drafting furnace

My buyer did call a HVAC contractor for their opinion of the unit and were told the furnace was operating normally and that it could last another 6 months or 15 years.


It boggles my mind than any professional would put their E&O on the line with such a statement.

I am grateful for the HVAC contractor to have the furnace on his E&O and not mine.

 

 

 

Charles Buell, Seattle Home Inspector

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Seattle Home Inspector

 

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WA State, Home Inspector Advisory Licensing Board

Don MacLean
New England Real Estate Center Inc. - Easton, MA
Realtor-Homes for Sale- Easton, Mass 02356

I hope he took the time to add some tips for better ventilation or at least a fire exit plan

Enjoy the day

Jun 06, 2011 03:11 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

That looks like a pretty bad furnace to me - I wouldn't run it in my home, and I'd suggest that my clients get a third opinion.

Jun 06, 2011 03:14 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Wow...it is always interesting to hear the stories and see the pix of some of this stuff...crazy!

Jun 06, 2011 03:54 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

People never worry about their furnaces until they go out. The best E&O policy ever written is the one that is never gets used Charles =] 

Jun 06, 2011 04:20 AM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Don, good idea on the ventilation

Dick, a third opinion would be a real good idea

Kristin, never a dull moment

Paul, ain't that the truth---you never want to have to use them

Jun 06, 2011 04:27 AM
Donald Hester
NCW Home Inspections, LLC - Wenatchee, WA
NCW Home Inspections, LLC

Charlie,

I am with you on this one. You call out what you know to be true only to have the professional "softball it".

 

Jun 06, 2011 05:36 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

I'd ask the buyer to get the statement the HVAC person made in writing. I wouldn't even turn that furnace on!

Jun 06, 2011 07:26 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

He's right, of course, it MIGHT last  15 years...  but will it?  Not likely!

And all the people MIGHT be dead before then!

Jun 06, 2011 08:22 AM
James Quarello
JRV Home Inspection Services, LLC - Wallingford, CT
Connecticut Home Inspector

YI find this type of evaluation hard to swallow as well. You figure the expert is going to back up, but it feels like they stab you in the back. None the less the burden of responsibility is now on the expert. Still it doesn't always feel "right".

Jun 06, 2011 10:28 AM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Mr Charles,

I thought our deal was that I would make the errors and you would make the emissions.

Nutsy

Jun 06, 2011 02:44 PM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Mr Charles,

If you are begnoring me, it is having no impact and I did not notice.

Nutsy

Jun 07, 2011 04:57 PM
Reuben Saltzman
Structure Tech Home Inspections - Minneapolis, MN
Delivering the Unbiased Truth.

I guess the HVAC contractor's definition of 'last' is different than yours.  Technically, a furnace could easily last for 100 years.  Probably not safely though.

Do you own a gas sniffer?  They're great to use on furnace like that to detect exhaust gas leakage. 

Jun 11, 2011 04:05 PM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Don, and it baffles me as to what they have to gain from doing it

Cynthia, supposedly they did

Jay, that is right

Jim, as long as it shifts to their E&O---that is all I can do---still feel bad for the people that actually have to live with it

Nutsy, I am ignoring you

Nutsy, I am still ignoring you

Reuben, yes I do use my gas sniffer---in this case the leaking was ridiculously visible

Jun 11, 2011 06:21 PM
Brian Persons
Brian Persons Front Range Home Inspections - Greeley, CO
Certified Master Inspector/Associate Broker

It bothers me when the buyer doen't care and wants to try to live with it. Yikes!

Jun 13, 2011 01:00 AM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Brian, that is a tough one, and sometimes happens---usually I find they get the point and replace the unit regardless of whether they can get the seller to replace it or not.

Jun 13, 2011 04:30 AM