InterNACHI creates Consumer Recovery Fund.
The International Association of Certified Home Inspectors has set up another non-profit
corporation to manage several new funds.1. Consumer Recovery Fund.
This fund will give consumers (clients of InterNACHI members) the option to tap a third-party fund which would compensate them directly for inspector negligence in return for pre-agreeing to limit the liability of the inspector to 5 times the cost of the inspection. The fund would pay out even if the inspector disagreed, retired, or went bankrupt. This fund may eventually require consumers to agree to hold referring real estate agents harmless.
2. Legal Defense Fund.
Unlike the Consumer Recovery Fund (above) which aids consumers when the inspector is wrong, the Legal Defense Fund will aid inspectors when the consumer is wrong. This fund may eventually be used to offer indemnity to real estate professionals who recommend InterNACHI members.
A first meeting to set up these funds was held in Kingston, Ontario on September 14th. Our Canadian legal counsel was present for this meeting
and will be handling the setting-up of this Canadian non-profit corporation to
manage these funds. Canadian InterNACHI members are in greatest need for immediate
alternatives to the expensive E&O insurance currently available. Techniques
to maximize the marketing advantages of our Consumer Recovery Fund and negligent
referral indemnity for real estate agents were also discussed.
Current status:
ConsumerRecoverFund.com and ConsumerRecoveryFund.org have been registered.
Wayne Fulton will be our initial Executive Director. About Wayne.
A Board of Directors made up of InterNACHI members is being assembled. Canadian law
requires that this non-profit corporation's Board be mostly Canadian, but Americans
can sit on the board as well. Chris Butler of FREA, our industry's leading E&O insurance provider has agreed to sit on the Board,
so has American InterNACHI Chapter Presidents Dave Campbell, and Joe Burkeson. Also
InterNACHI members Marc Thibodeau, Gary Jackson, Ian Kilborn, Joe Farsetta, and Raymond
Wand.
Member David Verge, a Chartered Arbitrator and Mediator from British Columbia
has offered to help. Discussions with a consumer advocate are ongoing and a consumer
advocate will likely be added to the Board soon.
Brad Comeau, InterNACHI's Canadian legal counsel has agreed to handle much of the paperwork and
InterNACHI has provided the initial seed money. Nancy P. Campiglia of Akerman Senterfitt will handle any issues state side.
A Claim-Review Committee is being formed and volunteers are coming forth. Although
Canadian-based, inspectors from all countries are welcome to participate in the
funds.
Check back for further developments.
