Inspector Liability Insurance
Effective 9/8/2008 New Certificate of Insurance form REI 8-1 - At its meeting on August 18, 2008, the Commission adopted amendments to the Certificate of Insurance form for inspectors, REI 8-1. The rule adopting the amended form will be effective September 8, 2008, but the form is available for immediate use.
The new form extends the time period for insurers to notify TREC of a lapsed policy. Consistent with industry practices regarding processing of renewals, insurers will now have 30 days (instead of 10) to notify the agency if an inspector cancels or fails to renew the policy. The new form also adds a statement that the aggregate limit is as specified in the policy.
The Commission will continue to accept proof of insurance provided on the 8-0 form for 90 days after September 8, 2008.
See FAQs on Inspector Liability Insurance further down this page.
Get the  Certificate of Insurance (TREC Form REI 8-1).
FAQs on Liability Insurance
Q: I don't know of any other licensed professions that are mandated to carry errors and omissions insurance. Why were inspectors singled out?
A: The Texas Legislature voted to add this requirement to Senate Bill 914 in the final days of the 2007 session. While we cannot say why this requirement was imposed on inspectors, TREC is now charged with enforcing the law.
Q: My inspector license expires June 30, 2008. When do I have to show proof of insurance?
A: Senate Bill 914 requires you to show proof of insurance at the time of your renewal in June 2008. After that time, be sure to keep your policy current and keep copies of your policies, as you may need to show proof of continuous coverage from July 2008 through June 2010 in order to renew your license again.
Q: Can you recommend an insurance company that offers professional liability insurance for inspectors?
A: TREC is unable to recommend insurance companies and does not maintain a list of companies that offer professional liability insurance for inspectors. We would suggest that you contact an inspector trade association or perhaps the company with which you have other insurance (car, home, etc.).
Q: Will TREC have an insurance "pool" for inspectors who are unable to get coverage through a regular insurance company?
A: When the Texas legislature passed the insurance requirement, they did not create an insurance pool for inspectors or authorize the Texas Real Estate Commission to do so. Therefore, TREC is unable to offer coverage to inspectors.
Q: I am currently taking classes to get my inspector license but will not be finished until after September 1, 2007. Can I file my application before I finish my coursework, or is there a way for me to be "grandfathered"?
A: Unfortunately, you cannot file your application until you have completed all of your coursework, and TREC must require proof of insurance from all applicants who apply on or after September 1.
Q: I am not currently performing inspections, but I'd like to maintain my license. Is there a way for me to do that without going to the expense of obtaining insurance?
A: An inspector who meets all other renewal requirements but does not show proof of insurance will receive an inactive license (which does not permit the inspector to perform inspections). To become active, a professional inspector would need to send in the Return to Active Status form (or, for apprentice or real estate inspectors, the sponsorship form) along with the applicable fee and the required proof of insurance.
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Page last modified: 3/13/2009
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