Why Home Inspectors Need Insurance?
Home inspectors work closely with buyers in the process of purchasing a new home. They count on you to thoroughly inspect a home, identify any potential problems, and deliver the findings. Buyers rely on your recommendations to determine if they should continue with the purchase. If you miss something critical, it can result in a lawsuit months after the home inspection is complete. Home inspector insurance is beneficial because it protects you during these costly scenarios.
Individuals working in building inspection inspect and evaluate a property and report on its condition. They do this for real estate transaction purposes.
Risks Home Inspectors Could Face
There are many risks you face each day that result in a lawsuit or unwanted expenses to your home inspection business including:
- Property Damage: It’s common for home inspectors to move items during an inspection or use heavy equipment. If your ladder crashes and breaks the glass on a homeowner’s cabinet or you flood the bathroom during a routine water inspection, you’ll be held responsible for the damages.
- Oversights: It’s hard to document every finding without going overboard. If you fail to notice certain pests or potential mold and the buyer ends up with a significant bill as a result later, they can file a lawsuit for negligence.
- Auto Accidents: It’s impossible to complete a home inspection anywhere but at the home. If you use your personal vehicle to travel to job sites and cause an accident, your personal auto policy won’t cover the expenses.
- Damaged Equipment: Specialized tools make it possible to complete home inspections efficiently. If these tools are stolen, broken, or damaged, expenses to replace them can add up in addition to lost revenue while they are unusable.
Types of Coverage Home Inspectors Need
Liability insurance is the beginning point for every home inspector insurance portfolio. You also need commercial property and errors & omissions coverage. If you have employees, you need to consider worker’s compensation and employment practices policies as well.
- General Liability: Pays to replace or repair property damaged by your services (belonging to a third party). It also covers injury to third parties and advertising injury if you are accused of harming a third-party with your advertising strategy.
- Errors & Omissions: Protects you against mistakes, oversights, and errors in your home inspection process. It pays defense and settlement expenses, so you don’t have to drain your bank account.
- Inland Marine: Commercial property insurance protects business property at your place of business or onsite. Inland Marine protects business property in transit in the event it is stolen for your truck or lost during an accident.
- Business Auto: Pays costs that occur when you are in an accident traveling to a job site. If you use a personal vehicle, you need to add hired and non-owned auto coverage.
How Much Does Home Inspector Insurance Cost?
Insurance for home inspectors varies in cost depending on the company and amount of coverage you wish to purchase. Insurance carriers usually want to know your experience, past claims history, whether you have employees, and what your home inspection checklist to calculate the insurance cost. You can request a quote today for home inspectors insurance by following the link below to our online quote system.