How Much Is Home Inspector Insurance? A Complete Guide

Home inspector insurance is a type of business insurance that covers home inspectors from potential liability claims arising from their professional services.

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Home Inspector Insurance | The Hartford

Inspectors are responsible for examining the condition and safety of a property before a buyer or seller makes a decision.

However, even the most diligent and experienced home inspectors can make mistakes or overlook defects that could lead to costly lawsuits.

Home inspector insurance can protect home inspectors from financial losses resulting from claims such as:

  • Property damage caused by the inspector during the inspection
  • Bodily injury to the inspector or a third party on the premises
  • Errors or omissions in the inspection report
  • Failure to detect or disclose defects or hazards
  • Breach of contract or negligence

Types of Home Inspector Insurance

There are two main types of home inspector insurance that are essential for any home inspection business: general liability insurance and errors and omissions (E&O) insurance.

General Liability Insurance

General liability insurance covers home inspectors from claims of bodily injury or property damage caused by their actions or negligence.

For example, if a home inspector accidentally breaks a window while inspecting a house, or if a client trips and falls over the inspector’s equipment, general liability insurance can help pay for the medical bills or repair costs.

General liability insurance can also cover personal and advertising injury claims, such as slander, libel, or invasion of privacy.

For example, if a home inspector makes a negative remark about a property or its owner on social media, and the owner sues for defamation, general liability insurance can help cover the legal fees and damages.

Errors and Omissions (E&O) Insurance

Errors and omissions (E&O) insurance covers home inspectors from claims of professional negligence or mistakes in their inspection reports.

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For example, if a home inspector fails to notice a termite infestation or a faulty electrical system, and the buyer or seller suffers financial losses or injuries as a result, E&O insurance can help pay for the defense costs and settlements.

E&O insurance can also cover claims of breach of contract, misrepresentation, or failure to meet industry standards.

For example, if a home inspector does not follow the guidelines of a professional association or a state regulation, and the client sues for non-compliance, E&O insurance can help cover the legal expenses and penalties.

How Much Does Home Inspector Insurance Cost?

The cost of home inspector insurance depends on several factors, such as:

  • The size and location of the business
  • The number and qualifications of the inspectors
  • The type and amount of coverage
  • The deductible and policy limits
  • The claims history and risk profile of the business
  • The discounts and endorsements available

However, these are only rough estimates, and the actual cost may vary depending on the specific needs and circumstances of each business.

Therefore, it is advisable to compare quotes from different insurance providers and agents before choosing a policy.

How to Save Money on Home Inspector Insurance

There are some ways to reduce the cost of home inspector insurance, such as:

  • Shopping around for the best rates and coverage options
  • Bundling different types of insurance policies together
  • Increasing the deductible amount
  • Lowering the policy limits
  • Implementing risk management practices and procedures
  • Taking advantage of discounts for memberships, certifications, training, etc.
  • Reviewing and updating the policy regularly

How to Get Home Inspector Insurance

Getting home inspector insurance is not difficult, but it requires some research and preparation. Here are some steps to follow:

  • Assess your business needs and risks
  • Determine the type and amount of coverage you need
  • Compare quotes from different insurance companies and agents
  • Choose a reputable and reliable provider
  • Read the policy terms and conditions carefully
  • Sign the contract and pay the premium
  • Keep your policy documents safe and accessible

How does E and O insurance work?

E and O insurance works by providing coverage for your business in case a client sues you for errors or omissions in your professional services.

For example, if you are a web developer and you make a mistake in the code that causes your client’s website to crash, E and O insurance can help pay for the legal fees and damages that you may owe to your client.

E and O insurance is usually purchased as a separate policy from other types of business insurance, such as general liability or property insurance.

However, some insurers may offer E and O insurance as an endorsement or add-on to a business owner’s policy (BOP).

E and O insurance policies typically have a limit, which is the maximum amount that the insurer will pay for a single claim or in a policy period, and a deductible, which is the amount that you have to pay out of pocket before the insurer pays the rest.

E and O insurance is not required by law, but it may be required by some clients or contracts.

It is also recommended for any business that provides professional services or advice to customers for a fee, such as consultants, accountants, lawyers, engineers, architects, real estate agents, financial advisors, and more.

E and O insurance can protect your business from costly lawsuits that could damage your reputation and finances.

How do I become a building inspector in Hawaii?

To become a building inspector in Hawaii, you need to meet the following requirements:

You can find more information about the home inspector license application process on the Department of Consumer Protection website.


Home inspector insurance is an important investment for any home inspection business.

It can protect home inspectors from potential liability claims that could jeopardize their reputation and finances.

By choosing the right type and amount of coverage, home inspectors can enjoy peace of mind and focus on providing quality service to their clients.

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