Florida Department of Business and Professional Regulation: Law Does Not Prohibit Home Inspectors From Offering Referral Fee to Insurers for Wind Mitigation Clients
Jul 29, 2013
According to an order issued on July 19, 2013 by the Florida Department of Business and Professional Regulation’s Division of Professions (“Division”) in response to questions presented by Don Meyler Inspections Inc. (“DMI”), a licensed home inspector or contractor would not be violating Florida law by offering insurers a referral fee for wind mitigation clients.
In its petition, DMI inquired about § 468.8319 (1)(h), F.S., which prohibits a person from offering or delivering “any compensation, inducement, or reward to any broker or agent therefor for the referral of the owner of the inspected property to the inspector or the inspection company.” The Division responded that the phrase “broker or agent therefor” does not apply to insurance agents and thus does not prohibit a home inspector from offering a referral fee to an insurance agent.
The Order further notes that advertisements of DMI’s proposed incentive/referral fee program would not be prohibited under Chapter 468, Part XV, F.S.
The Division notes that DMI has presented a unique set of circumstances, adding that “Another party can expect the agency to apply the rationale for its declaratory statement consistently, or to explain why a different application is required.”
The Order is attached in PDF format.
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