Home inspection insurance is a type of insurance designed to protect professionals who perform home inspections. Such an inspection involves looking at the overall safety of the house, such as electrical concerns and appliance usage. The home inspector cannot, however, check every aspect of the house. Something could go wrong with flooring, foundations, cables or a whole host of other things that the inspector cannot check. Home inspection insurance protects the investor against a lawsuit from the homeowners if a problem arises in one of these areas.
Even if the problem has nothing to do with the home inspection, the inspector may still be sued. Home inspection insurance is a form of malpractice insurance against the natural limitations of the inspection. This type of insurance is also referred to as errors and omissions insurance, and it covers everything from a piece of advice the inspector gives to the whole range of home inspection services. Home inspection insurance comes in different varieties, and the inspection company should take out a policy that best suits the services they provide. This will involve home inspection forms for all inspectors, employees and contractors.
The coverage provided by errors and omission insurance is typically excluded by a general liability policy. Any aspect of the insurance may have limitations, and all the important terms should be clearly stated in the policy. All types of home inspection insurance should include monetary and deductible amounts of each liability, a defense cost, an explanation of the errors or acts that would warrant the use of the insurance, a detailed listing of the services provided by the inspector and the date that the claims were made.
A professional home inspection company should always take out an insurance plan sooner rather than later; waiting until a lawsuit occurs is not a smart idea. Be proactive, and have the insurance just in case. Since it is so specialized, home inspection insurance is usually not available from insurance brokers. Many different carriers can, however, be found on the Internet by searching for home inspection insurance, but before purchasing a policy, visit the company’s website to be sure it is reputable. Research the different types of policies offered and the terms each one provides.
The insurance policies are geared toward different types of homes, as well as different locations. New home inspection policies differ from inspections performed on Victorian houses, and the terms of the insurance will be adjusted accordingly. Also, insurance policies for the Midwest are likely to include provisions for tornadoes, while those in the North focus on protecting the home from blizzards. The cost of home inspection insurance will vary depending on these factors and others.
