During the house-buying process, it’s important to have a professional home inspector come and look over the property before you commit. This can help you avoid unwanted surprises after the purchase, like an expensive repair you weren’t expecting. The home inspector can spot any potential issues, such as foundation cracks, that could lead to flooding, so you can address them before it’s too late.
But at the same time, a home inspector’s job carries the potential for a significant degree of risk. They can overlook something during the inspection process that is costly for the house owner. As a result, the homeowner may become very angry and take legal action to obtain some form of reimbursement. Thus, a home inspector must have a policy that includes legal protection from a Burke insurance agency, commonly referred to as Errors and Omissions (E&O).
It’s For Covering Their Bases
No matter how diligently home inspectors work, they can still be held liable for unanticipated problems. Home inspections involve various potential issues, from structural deficiencies to undetected water damage. People can become highly charged when it comes to buying or selling a house, so home inspectors, who are critical to appraising the value of a property, are often the target of blame if difficulties arise.
Home inspectors can face legal action if the buyer of a home they inspected believes they missed a defect or did not report something accurately. Home inspectors can be held responsible if they fail to identify a major issue they should have detected. This means that even if the inspector followed all the standards of practice, they could still be held liable if a significant issue is missed.
Around 12 percent of every 1,000 inspections will result in claims within five years. As a result, home inspectors need to carry insurance to protect themselves from potential lawsuits.
How This Policy Protects Them
E&O insurance from a Burke insurance agency protects home inspectors if they are sued for negligence, mistakes, or wrongdoing. It covers the costs of defending yourself against a lawsuit and any damages you may be ordered to pay if you lose the case. For example, if a former home inspection client sues you for mistakenly identifying an old furnace, this insurance would cover the costs of defending you in court and any damages the court orders you to pay.
Sometimes, it may be difficult to anticipate issues not visible during an inspection. However, home inspectors can be held liable if they fail to recognize and report potential issues that can lead to water damage down the line. In these situations, the home inspector can be held accountable for any damages resulting from their negligence.
In Closing
Home inspectors have the important task of providing their customers unbiased, honest, moral, and dependable professional guidance. Keeping Americans safe while they make one of the biggest financial investments of their lives is a huge commitment. The things home inspectors say and do for their clients can have a big impact on the choices they make. Home inspectors should consider taking out an insurance policy to protect their business, finances, and reputation.
Contact Pascal Burke Insurance Brokerage Inc. (PBIBINS) for Your Policy
PBIBINS is a commercial-based Burke insurance agency that knows the construction business from the ground up. That’s why we specialize in various policies covering general and specialty contractors. Call (877) 893-7629 today or get a fast quote from our website and save up to 40 percent on your first policy!