Insurance for Home Inspectors

Many states require home inspectors to carry certain types of coverage and minimum limits for liability. An insurance is designed to protect you from unintended circumstances that result in losses, or hardship of your clients and your business.

American Society of Home Inspectors (ASHI) certified is the highest level of certification a home inspector business can receive. These are the only true 3rd-party certified inspectors in the industry, and are accredited by the National Commission for Certifying Agencies (NCCA).

Yes. Even though there are instances where home inspectors can be exempted from Workers' Compensation, there are claims and liabilities in which health insurance does not provide coverage. As soon as your business adds employees, workers compensation becomes mandatory or highly recommended.

The cost of insurance can vary by state and number of inspectations made per year. General Liability insurance is often about $500 a year. The cost for Professional Liability varies much more, depending on the extent of inspection services. For a basic E&O policy which does not cover work around hazardous materials, the cost can range from $600-$1,200 per year. For inspectors testing Radon, mold, asbestos, and other hazardous materials the cost can often starts at $2,000 per year.

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.

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 may not 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.