Like many people, you’re probably looking to save a little money and everyone loves a good deal. I’m sure you’ve heard, if it sounds too good to be true, it probably is? Good deals are hard to say no to, but sometimes it’s important to understand that Home inspections are not excluded from this theory and there’s a very important reason why.
Home inspectors provide a service to their clients, a service that is very important in a real estate transaction. It’s an opportunity for the buyer to peel back the layers of the home and see what’s lurking inside they may not be aware of. Nobody wants to buy a money pit and home inspectors are there to give an unbiased review of the overall condition of the home and identify potential items that may cost you big money down the road. The problem is, some home inspectors offer lower fees for their services which may be attractive to you. What you need to know is some home inspectors are not insured and your well being isn’t their number one priority.
Insurance plays a big role in home inspections, and specifically, if the inspector were to miss a large cost item, their errors and omissions insurance may be on the hook for the mistake. If your inspector does not have insurance and they missed a large cost item, like a roof that needs replacing, you can sue them, but without insurance, it will get messy. If they refuse to pay, you may go after their company assets, in which case could be worth a laptop computer and some tools. Therefore you’re out big time, and the reason you hired a home inspector backfired and now you’re stuck with a large repair expense in your new home.
The easiest way to protect yourself is to simply ask your potential home inspector whether or not he has insurance. Typically they should have Errors and Omissions insurance as well as General Liability insurance. Sure, you may pay a little more, or not, but always check prior to signing an agreement and paying for the service. It’s in your best interest, and if something were to go wrong, you know there are measures in place to protect both yourself as well as the inspector.