Homeowners or potential home buyers are very passionate about their properties. Why wouldn’t they be? For most, a house is the largest investment that will be made in their lifetime. When a home inspector is hired, the homeowner wants the overall condition of the property evaluated, and the home inspection results are a key factor in the sales transaction. This can leave the Home Inspector in a vulnerable position since the results and the accuracy of the inspection are of great interest to the buyer and seller.
What are the responsibilities of a Home Inspector? Home inspection is a visual examination of a property, scrutinizing major systems like electrical and plumbing, and also the structural condition of the dwelling. A material defect is a deficiency in a system or structure of a property that could have an adverse impact on the value of the property. A Home Inspector looks for defects, and will examine the following systems and areas of a home: roof, exterior, basement, foundation, crawlspace, heating, cooling, plumbing, electric, fireplace, attic, ventilation, insulation, doors and windows. They will give a general inspection, and operate systems to see if they are in functioning order. For example, they will activate the heating and cooling system noting if they are in working order, and run the faucets and showers to observe their functionality.
All of these systems are critical to the normal function of a home, and it is the job of the Home Inspector to give a general diagnosis on how well they are functioning. When a problem occurs in a house at a later date, even if there was not a way to anticipate the issue, a Home Inspector can be held accountable. This is a frequent occurrence, and this is why it is necessary for a Home Inspector to have Errors and Omissions insurance. Owners have invested large sums of money into their homes, so some may look for a way to make up for their loss.
Errors and Omissions insurance protect a Home Inspector from dramatic financial loss should they be the target of legal action? Many times the Home Inspector is not at fault, but they are sued anyway and costly legal fees are incurred. However; sometimes due to an oversight or mistake, a Home Inspector is accountable. Either way, the litigation can be crippling for a small business, and Errors and Omissions insurance will protect the company, its employees, owners and even contractors. Home Inspectors are indispensable in a real estate transaction, but they should always be protected with Errors and Omissions insurance to shield themselves and their business.
Grace Enderlein is a freelance writer and editor. “Tasks of a Home Inspector and Why They Need Errors and Omissions Insurance” outlines the general responsibilities of a Home Inspector and how they can be held liable. Eiipro.com offers competitive, cost effective Errors and Omissions Insurance for Home Inspectors.
