What Is a Home Inspector's Liability Insurance?

In my role as a home inspector I am often the first one to bring to the attention of a seller of a home or a buyer of a home about their home's defects. Most of the time I'm the one who makes the referral. My goal is not to refer my clients to an inspection service or an inspector. My goal is to refer them to a professional who can do a thorough home inspection on their behalf and provide them with the peace of mind that they need to make an informed decision about their purchase.

My role as a home inspector is to identify the defects in the home and then determine the cause of the defect so that the repairs can be made and the house will pass an inspection. Sometimes my role as a home inspector is to simply make the decision to purchase the home rather than my clients making the decision. Many homeowners' insurance policies only cover the home inspection. There are some homeowners insurance companies that will cover the entire purchase price of the home. I don't have a specific number in mind for what I expect from my clients' insurance companies.

As home inspectors we have a responsibility to our clients to explain the risks associated with purchasing a home. One of the biggest issues that home inspectors bring up is that houses are priced too low and there are too many problems with the home. I sometimes refer clients to an article in the New York Times that outlines the hazards associated with buying a home with sub-standard conditions. This is information most buyers won't find in the fine print of the sales contract.

If the buyer of a sub-standard home hires their own home inspector, it is very likely that the inspector will raise the alarm about the poor condition of the home.Ohio Car Insurancewill not cover the cost of the home inspector's expenses for raising the alarm. If you are the one who has raised the alarm, you may not be covered for the cost of having the home inspected.

Many home inspectors carry liability insurance on their person at all times. This policy usually covers them if they injure themselves while inspecting a home. The type of coverage offered by the inspector's insurance policy will depend on their own specific employment status. If the home inspectors were self employed, they would probably not carry an insurance policy that covered them if they injured themselves.

If the home inspector is working for a contracting agency, they may consider the home as a risky investment and carry special insurance to protect them. These types of policies usually have a higher premium than the ones they would carry if they were self-employed. This is due to the increased risk involved with contracting with a new company. However, these contracts usually include coverage for all legal expenses and any legal action that is brought against the contractor by the home buyer.

There may be additional stipulations in the policy such as coverage for damages beyond the home's value. It is best for a home owner to thoroughly discuss all these terms with the insurance agent before purchasing the policy. In addition, there are many things that can go wrong during a home inspection that could affect the worth of the policy.

Most home inspectors will not carry a personal liability policy due to the extreme level of work they perform. Some of the tasks included in the inspections include investigating plumbing and electrical systems, reviewing the structure of the home, testing the foundation and even making necessary repairs to the home. Each of these tasks is extremely labor intensive. Without the protection of a good policy this labor would have to be paid for by the home buyer. As a result the home inspector would have to pay out of pocket to protect himself.