Home Inspector Insurance from Massachusetts Specialists

What is Home Inspector Insurance?

Inspecting houses can be profitable and rewarding work, but the responsibility of checking houses comes with some risk. Inspectors may be held liable for the consequences of any mistakes they make, and they face a number of other potential risks. Home inspector insurance helps Massachusetts inspectors shield themselves from a range of covered perils that they’re exposed to.

Home inspector insurance policies are commercial policies that have been specially designed to meet the risk mitigation needs of home inspectors. These policies usually come as package policies, and inspectors can often adjust the exact mixture of coverages that are in their selected policy.

Who in Massachusetts Should Have Residential Home Inspector Insurance?

Massachusetts state law generally requires professionals who offer home inspections in the state to carry certain levels of insurance. This insurance, as well as any additional protection that inspectors may want, is most often obtained through a residential home inspector insurance policy. 

Professionals who inspect non-residential buildings will likely find that they need more coverage than a standard home inspector policy provides, and many home inspector policies exclude inspections performed on non-residential buildings. Therefore, inspectors of commercial and industrial buildings usually need to get a slightly different insurance policy.

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What Protections Do Residential Home Inspector Insurance Policies Offer?

There are several different coverages that a residential home inspector insurance policy may provide and inspectors may want. A few common coverages include:

• Commercial Property Coverage, which may cover facilities and equipment against theft and damage
• Tools and Equipment Coverage, which may cover specialized tools with more protection
• Equipment Breakdown Coverage, which may cover equipment against unexpected malfunction
• Business Income Coverage, which may cover prolonged operational interruptions that are caused by a disaster
• General Liability Coverage, which may cover basic accidents that involve third parties
• Errors and Omissions Coverage, which may cover mistakes made during an inspection

Some policies may offer other coverages as well. An insurance agent who specializes in this type of policy can help inspectors decide which coverages they want.

What Should Home Inspectors Look for in Errors and Omissions Coverage?

E&O coverage, as it’s often abbreviated, is widely used across professionals but often tailored to a particular profession. Thus, E&O coverage that’s suitable for another professional probably isn’t right for a home inspector. Inspectors should seek out coverage that’s adjusted to mitigate against the risks they face.

Specifically, home inspectors should make sure whatever E&O coverage they ultimately choose insures all the inspections they perform. Depending on what services an inspector offers, this coverage may need to include inspections for:

• General purposes
• Lead paint
• Septic and sewer systems
• Pools and spas
• Mold presence
• Water purification systems
• Termite damage

An agent can help inspectors check the E&O coverage of any policy they’re considering.