What Kind of Insurance Do You Need for a Home Inspection Service?

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Why Do You Need Home Inspection Insurance?

As a property inspector, homeowners and homebuyers are relying on you to provide feedback on their home and any issues that there may be. This often due to a sale of a home and the new buyer will request an inspection so that they know what they are getting into and ask the current owner to fix any issues before they fully commit to buying. Your job is an important one, as purchasing a home can be one of the most important, and costly, things anyone can do in their lifetime. So, what happens when you make a mistake? Or the client fails to read your report thoroughly, and then someone gets hurt or the homeowner loses money? Regardless of what the legal jargon may say in your contract, you can be held liable and should have Home Inspection insurance in place. Keep in mind that not only does this apply for home inspectors, but also those that do residential and commercial properties.

Home Inspectors and General Liability Insurance

General Liability insurance is an essential coverage for any home inspector to have. Unfortunately, accidents and oversights can happen. This type of insurance is very affordable because the number of claims is usually very small. There are a few key points that you should know about General Liability.

  • Bodily Injury – it covers if someone gets hurt by accident while you are on the job site, or if someone gets hurt due to an alleged error in your report.

  • Property Damage – Pays to fix any damage done by you that was unintended. For example, if you are using a flashlight to see into the attic and drop it onto their glass kitchen table and it shatters.

Some other crazy things can always happen, such as you being accused of causing water damage because you flushed a toilet. In the litigious society we live in, anything goes. It is important to be aware of the exclusions in this policy, however, because sometimes bodily injury can be excluded. Protect yourself and your business by purchasing a bundle of General Liability and Errors & Omissions insurance.

Home Inspectors and Errors and Omissions Insurance

While General Liability claims are on the smaller side, often Errors and Omissions insurance sees the big-ticket ones. If you make an error or omission within your report that causes financial hardship to the client, you will most certainly be sued. Even if it is determined that you were not at fault, can you imagine how much the lawyer fees and court costs would be out of pocket? Errors and Omissions insurance will pay for the defense costs associated with these claims.

A quick claims example – you probably have heard of the Ikea dressers needing to be fastened to the wall? Let's say a home is being sold fully furnished and you fail to mention that the dressers should be secured to the wall to prevent injury. If a child ends up climbing on that dresser and becoming injured, you could cover that here.

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Is Home Inspector Insurance Required in All States?

It is important to note the requirements of your state when it comes to insurance. Home inspectors are required to have insurance in almost half of the United States. Even if it is not required in your state, you should protect your wallet and future profits anyway. Additionally, many clients and even realtors will be quicker to use your services if they know you are responsible enough to have the proper insurance protection.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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