Do Home Inspectors Need Home Inspection E&O Insurance?

Home inspectors have risky jobs. No, not in the way that being a construction worker or a gymnast is risky, but in the way that home inspectors can be sued merely for doing their jobs – and they have been.

Obviously it’s a home inspector’s job to find the problems in a house before a buyer makes his or her purchase. There are problems in old houses as well as brand new houses – it comes with the territory. Some instances, however, when the home inspector does his job and finds the problems in the house, can cost the realtor the sale (the buyers walk away after seeing the inspection report). One particular example of this happening resulted in a Connecticut Realtor suing a home inspector, essentially because the inspector did his job “too well.” For an inspector, home inspection E&O insurance is an essential backup to have in the toolkit.

For a home inspector, the consequences of making a mistake can be incredibly costly. And as the above example illustrates, even avoiding mistakes can create financial risk to the home inspector. It is important to cover your assets and keep your personal investments safe, as well as your professional reputation. Inspectors absolutely need to invest in home inspection E&O insurance.