[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/homeinspectionsovercoffee.com\/home-inspection-company-warranties-might-ruin-your-real-estate-business\/#BlogPosting","mainEntityOfPage":"https:\/\/homeinspectionsovercoffee.com\/home-inspection-company-warranties-might-ruin-your-real-estate-business\/","headline":"Home Inspection Company Warranties Might Ruin Your Real Estate Business","name":"Home Inspection Company Warranties Might Ruin Your Real Estate Business","description":"We offered warranties for years; it was a cornerstone of our marketing, messaging, and entire business model.\nIt was who we were as a company. As we grew and did more and more inspections, we learned that this was a huge mistake. We were allowing our business model to be controlled by third-party vendors that did not have the same care and concerns for our clients and our real estate partners.","datePublished":"2022-07-11","dateModified":"2025-05-19","author":{"@type":"Person","@id":"https:\/\/homeinspectionsovercoffee.com\/author\/curtis\/#Person","name":"Kloc Curtis","url":"https:\/\/homeinspectionsovercoffee.com\/author\/curtis\/","identifier":6,"description":"Curtis Kloc is a U.S. Navy veteran and seasoned entrepreneur with over two decades of experience in business development, inspections, and technical systems. He has built and sold multiple six- and seven-figure home inspection and environmental services companies, including HERO Inspections & Environmental and Elite Analysis. Curtis is the founder of Inspections Over Coffee, a nationally expanding franchise known for its white-glove service, inspector training systems, and streamlined operational workflows.\r\n\r\nWith deep roots in nuclear engineering from his time as a Machinist Mate and Engineering Laboratory Technician aboard two U.S. Navy aircraft carriers, Curtis brings unmatched precision and discipline to every business he runs. He is certified and licensed in home inspection, mold assessment, asbestos inspection, and environmental testing, and is a member of NACHI since 2006. Curtis now leads AI automation initiatives through Nexation.ai, helping businesses eliminate busywork and refocus on what matters most\u2014client relationships, growth, and results.","image":{"@type":"ImageObject","@id":"https:\/\/homeinspectionsovercoffee.com\/wp-content\/uploads\/2025\/06\/1630069397452.webp","url":"https:\/\/homeinspectionsovercoffee.com\/wp-content\/uploads\/2025\/06\/1630069397452.webp","height":96,"width":96}},"publisher":{"@type":"Person","name":"Curtis Kloc","image":{"@type":"ImageObject","@id":"https:\/\/homeinspectionsovercoffee.com\/wp-content\/uploads\/2024\/10\/site-logo.png","url":"https:\/\/homeinspectionsovercoffee.com\/wp-content\/uploads\/2024\/10\/site-logo.png","width":512,"height":512}},"image":{"@type":"ImageObject","@id":"https:\/\/homeinspectionsovercoffee.com\/wp-content\/uploads\/2024\/12\/home-inspection-warranty-1.jpg","url":"https:\/\/homeinspectionsovercoffee.com\/wp-content\/uploads\/2024\/12\/home-inspection-warranty-1.jpg","height":784,"width":800},"url":"https:\/\/homeinspectionsovercoffee.com\/home-inspection-company-warranties-might-ruin-your-real-estate-business\/","about":["Agent Training & Resources"],"wordCount":804,"articleBody":"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tHome Inspection Company Warranties Might Ruin Your Real Estate Business\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t  Why Home Inspection Warranties Might Be Hurting Your Real Estate Practice  At one point, warranties were a cornerstone of our business. We believed they added value, reinforced our commitment to our clients, and differentiated us in the marketplace. But after conducting over 15,000 inspections, we learned\u2014sometimes painfully\u2014that including warranties was a huge mistake. Here's why we've stopped offering them and why you might want to think twice before aligning your real estate practice with inspection warranties.  They Don't Deliver What They Promise  The average inspection warranty costs $30\u2013$40. For that price, they claim to cover roofs, sewer lines, mold, structural issues, and more. But consider this: reputable home warranty plans cost $500\u2013$1,000 per year, and insurance policies that cover catastrophic events like fire or water damage cost thousands. So how can all of that be truly covered for just a few bucks? The truth is, it can't. And it isn\u2019t.  These warranties offer a false sense of security. Most claims get denied due to fine print, exclusions, or loopholes. For example, a plumbing leak inside a wall is typically excluded, despite being one of the most common post-inspection issues. There are caps, deductibles, and countless ways to avoid payout. In 2021, we paid over $100,000 to warranty providers. They paid out around $5,000\u2014to our clients. That\u2019s a 3% return, and not without battles.  They Damage Your Reputation  When these warranties fail to deliver, the blame doesn\u2019t fall on the warranty company\u2014it falls on you, the real estate agent, and us, the inspection company. Clients sit on hold for 30\u201350 minutes per call. Claims can take 6\u201310 months. The customer service is abysmal. Even when a payout happens, it\u2019s usually partial and leaves the homeowner frustrated.  Suddenly, you\u2019re getting calls post-closing from a client with a plumbing issue or roof leak, wondering why their warranty isn\u2019t covering it. Your reputation, trust, and future referrals are now on the line for something you can\u2019t control.  Inspectors Aren\u2019t Insurance Companies  Home inspections are a snapshot of a property\u2019s condition at a specific point in time. A great inspector with modern tools\u2014thermal cameras, moisture meters, drones, and advanced training\u2014will provide a thorough assessment. But they cannot predict the future. Nor should they, or their agents, be expected to make good on events that happen post-closing.  Warranties were sold to us as protection against missing something. But if you have trained, experienced inspectors, that protection is unnecessary. Worse, if something is missed and you tell the warranty company, they often say, \u201cSorry, not covered if it was missed.\u201d It\u2019s a lose-lose scenario.  It Hurts the Client Too  Your clients are left feeling misled. Even when they receive a partial check, they\u2019re upset about what wasn\u2019t covered. The frustration grows and it reflects poorly on everyone involved. And most clients don\u2019t understand that you, the inspector, and the agent aren\u2019t liable for future homeownership problems. The expectation, created by the warranty, is now your problem to manage.  True Stories from the Field  Story #1: A post-closing leak led to water and mold damage. Our report had video and thermal images proving the issue was new. Six months of fighting later, the client got a $500 check\u2014well below the repair cost. The mold claim was denied.  Story #2: A sewer line issue required major exploratory work. The warranty advertised \u201cWe\u2019ll dig it up and fix it,\u201d but only paid for the exact break. Not the digging. Not the diagnostics. Everyone wasted time for minimal payout.  Story #3: A second-floor shower drain leaked. Thermal images and video from the report proved it was new. The claim was denied because the leak was behind drywall. After intervention from our owner, they covered the leak repair\u2014but not the drywall. The client, and everyone else, was frustrated.  Let\u2019s Stay in Our Lane  As inspectors and agents, our job is to protect clients during the home-buying phase. We ensure they don\u2019t unknowingly inherit problems. But once they own the home, normal maintenance and unexpected repairs become part of homeownership. That\u2019s what homeowner\u2019s insurance is for.  Warranties mislead clients into thinking someone else will deal with the problems. When that doesn\u2019t happen, they turn to you. And the cycle of disappointment begins.  The Better Option  If you want an inspection partner who delivers thorough, clear, and professional evaluations\u2014without overpromising\u2014Inspections Over Coffee is the ideal choice. We go above and beyond state and national minimum standards. Our technology, training, and reporting are best-in-class, and our mission is simple: help your clients understand what they\u2019re buying\u2014nothing more, nothing less.  Skip the gimmicks. Skip the fine print. Skip the disappointment. Let\u2019s focus on what actually helps your clients.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSchedule Inspection\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home Inspection Company Warranties Might Ruin Your Real Estate Business","item":"https:\/\/homeinspectionsovercoffee.com\/home-inspection-company-warranties-might-ruin-your-real-estate-business\/#breadcrumbitem"}]}]