Home inspector insurance

A detail you don't want to miss

How many times do clients say to you, “That's the best money we ever spent”? A lot, we're guessing.

No-one wants an expensive surprise. Your reports reduce the risk your customers will get one.

But you're not clairvoyant. You can't see through walls or floors. And like the homes you inspect, you're not perfect.

Accidents happen, mistakes can be made. Then the next thing you're looking at isn't a house, it's a lawsuit. Lawyers, court fees, compensation…seeing dollar signs?

Buyers skipping a home inspection are taking a big gamble. Without the right coverage, so are you.

Home inspector liability insurance? Might be the best money you ever spend.

• Why do home inspectors need insurance?

  In some states you can't be a licensed home inspector without it. But even if it's not a requirement in your state, it's still worth having the right insurance.

  You sell your services as a professional. So, clients might – and should – ask you for a current certificate of insurance.

  But it's for your peace of mind, too. It means if something goes wrong - an accident on-site resulting in a claim for injury or damage, or your professional service is called into question – you can relax.

  Even if the claim is groundless, your coverage can take care of your legal defense, fees and compensation if you're liable.

  And you can get back to business. Because that's the bottom line. Without insurance, fighting a lawsuit doesn't just use up your money, it takes up your time.

  You need liability insurance for home inspectors because you're not a legal expert, you don't have a bottomless wallet and – you have a business to run.

• What kind of insurance do home inspectors need?

  You need a package that gives you two kinds of coverage, general liability and errors & omissions.

  But you don't have to take our word for it. AHSI and InterNACHI recommend home inspectors have both.

  Why? Because general liability insurance doesn't give you the level of cover you'll need for a financial defense against lawsuits accusing you of professional negligence.

  • General liability insurance

    You need general liability insurance to cover you for accidents that might happen while you're on the job – which for you, means on-site.

    Like a ladder you left leaning on the side of a house falling and hitting someone on the head. Or on their car.

    General liability insurance can pay medical bills if someone's injured, repairs to damaged property and loss of use.

    And if you're sued – even if it's not your fault – you'll get an attorney to defend you and your legal costs paid.

  • Errors and omissions insurance (E&O)

    You offer a professional service, right? The information you provide for your customers is critical. It comes at a time when they're making one of the biggest purchases they'll ever make.

    That means you can be sued if you make an error or leave something out of a report that ends up costing your clients.

    It's easy to get lost in the detail of a defect and miss the cause. Like climbing up to the roof, noting the shingles show wear, but missing the sagging ridge beam.

    Or failing to spot a kitchen island isn't properly fastened to the floor. If it tips and injures someone you could be sued for compensation.

    And just because you're contracted by your client, doesn't stop claims being filed by others not even party to your original inspection.

    But did you know you can be sued even when you haven't made a mistake?

    Mistake or not, E&O's got you covered. It gets you a lawyer, stumps up your legal fees plus compensation, if you're liable.

    Oh, and it's also known as professional liability insurance. The clue's in the name.

• How much does home inspector insurance cost?

  Home inspector insurance costs vary. The price you’ll pay is affected by things like your annual income and payroll, as well as by the amount of coverage you need.

  But you can pay in monthly, or quarterly installments, or in one lump sum. Whatever suits your budget best.