One profession that people often overlook is that of the home inspector. Home inspectors face a surprising amount of risk when it comes to performing their job. Thankfully, there's coverage to protect against those risks.
Home inspectors insurance isn't a tangible insurance policy. Instead, it's a combination of important insurance coverages tailored to protect against certain claims the insured home inspector may face.
What Does Home Inspectors Insurance Cover?
A basic home inspectors insurance policy typically includes general liability coverage and professional liability coverage.
- General Liability: This refers to bodily injury and property damage to third parties that arise out of non-professional negligence. If you have an office where someone slips and falls, for example, general liability will help with their medical expenses. It can also cover possible legal fees if they decide to sue.
- Professional Liability: Professional liability insurance covers claims regarding acts of professional negligence. Home inspectors follow certain rules and guidelines when inspecting homes. If they make a mistake that leads to a client losing money, a lawsuit could follow. Professional liability insurance helps to cover legal fees related to such a lawsuit.
The limits of each coverage you need depend on the size of your practice and the scope of your home inspections. If you operate in areas with a high cost of living, your coverage may need to be more extensive than a home inspector in lower middle-class areas.
Keep in mind that these coverages are liability only. You may need other insurance policies if you operate from a physical address or employ workers.
How Much Is Home Inspectors Insurance?
The cost of home inspectors insurance varies. Depending on the type of coverage you have and your limits, you could pay anywhere from $500 a year for general liability insurance and $600 to $1,200 a year for professional liability insurance. If you're an independent home inspector, your rates are likely to be toward the lower end. There are many factors that may affect your monthly home inspector insurance premiums, however, such as your:
- Size of the business
- Claims history
- Credit score
- Coverage limits
Higher deductibles will mean lower monthly premiums. But it also means that you'll have to pay more out of pocket when filing a claim. More experienced home inspectors may find cheaper home inspector insurance rates, depending on their credit score and amount of claims filed in the past.