E&O Insurance for Home Inspectors
We offer errors and omissions (E&O) insurance and general liability insurance to home inspectors who perform inspections of residential and commercial real estate properties, including high value properties.
As insurance brokers, we have access to multiple highly rated insurance companies and can offer coverage to home inspectors in select states at reasonable prices.
Call us at 1-877-245-5887 if you have any questions or wish to discuss your insurance needs. We're looking forward to earning your business.
What type of work do home inspectors do?
Home inspectors are usually retained in connection with a real transaction in order to perform an inspection of the building and its systems. Home inspectors are generally only expected to inspect components and systems of the property which are present, visible, and accessible at the time of the inspection.
Some of the systems and components which are generally subject to inspection include, but are not limited to the following*:
Structural Systems: Foundations, grading and drainage, roof covering materials, roof structure and attic, walls, ceilings and floors, doors, windows, stairways, fireplaces, chimneys, porches, balconies, decks, and carports.
Electrical Systems: Service entrance and panels, branch circuits, connected devices, and fixtures.
Heating, Ventilation, and Air Conditioning Systems: Heating equipment, cooling equipment, duct system, chases, and vents.
Plumbing System: Water supply system and fixtures, drains, wastes, and vents, water heating equipment.
Appliances: Dishwasher, food waste disposer, range exhaust vent, ranges, cooktops, and ovens, microwave oven, trash compactor, mechanical exhaust vents and bathroom heaters, garage door operator(s), doorbell and chimes, dryer vents.
Optional Systems: Lawn and garden sprinkler systems, swimming pools, spas, hot tubs, and equipment, outbuildings, outdoor cooking equipment, gas supply systems, private water wells, private sewage disposal systems, whole-house vacuum systems.
* The coverage offered is subject to limitations and exclusions. Please refer to the actual insurance policy for details regarding coverage, exclusions, and limitations.
Why should home inspectors carry E&O and general liability insurance?
While some states require home inspectors to carry E&O and/or general liability insurance, it is always a good idea to have the proper insurance protection.
Most claims against home inspectors are related to a problem or defect in the property which was not discovered or reported during the inspection but which subsequently becomes an issue.
While home inspectors are not expected to find every problem which may exist with a property, especially hidden defects, buyers of the property will nonetheless tend to blame the inspector if a problem is later discovered.
The cost to defend a claim can be significant and court proceedings can be lengthy. This is why it is recommended that home inspectors carry E&O and general liability insurance.
What's the difference between E&O and general liability insurance?
Errors and omissions insurance is meant to provide coverage against allegations that the home inspector missed a problem or failed to report some issue. Therefore, the coverage provided is regarding professional negligence in connection with the inspection.
General liability insurance provides protection against allegations that the home inspector caused bodily injury or property damage in the process of performing his or her work. As an example, a home inspector could cause a fire in the process of testing the electrical system or injure someone for any reason during an inspection.
Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming.