Working as a home inspector comes with a substantial amount of responsibility and risk, for an oversight during an inspection could have costly consequences that the inspector might be held responsible for. Home inspector insurance policies help Massachusetts home inspectors shield themselves from a lot of the risks 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. Most policies are written as package policies that combine multiple coverages together.
Businesses and individuals who perform residential home inspections in Massachusetts are generally required by state law to carry minimum levels of insurance, and this insurance is most commonly procured through residential home inspector insurance policies. Often, home inspectors elect to get more than the minimum-mandated amount of coverage when they’re purchasing a policy so that they’re better protected.
Businesses and individuals who perform inspections on larger buildings may have coverage needs that are similar to home inspectors, but these businesses are usually better off with a building inspector policy rather than a residential home inspector policy. A residential home inspector policy may exclude inspections on other types of buildings from its protections.
Errors and omissions coverage generally protects against work-related mistakes that a professional makes while doing their job or giving clients advice. This is perhaps one of the most important protections that home inspectors generally need. The coverage is often referred to as “E&O coverage.”
When reviewing the E&O coverage that a residential home inspector insurance policy offers, home inspectors should be careful to make sure the coverage extends to all of the different types of inspections that they perform. For example, inspectors might need coverage for the following type of inspections:
An insurance agent who specializes in residential home inspection insurance can help inspectors make sure they get E&O coverage that properly protects them.
In addition to E&O coverage, there are many other protections that a residential home inspector policy might offer. Some of these are:
Home inspectors may also need or want to add a tools and equipment endorsement, which is sometimes used to insure specialized tools that are expensive.
Most home inspectors need some form of auto insurance since they drive to customer’s houses, and this auto insurance frequently has to be a form of commercial auto coverage. Exactly what type of auto coverage is required, however, depends on like how a vehicle is registered, what entity owns the vehicle and what else the vehicle is used for.
An experienced insurance agent can help home inspectors determine what form of auto coverage they need and find a policy that provides the appropriate protection.
Home inspectors who are just starting out may be tempted by pay-per-inspection home inspector policies, as these policies can cost less than standard home inspector policies if an inspector doesn’t have many customers. Home inspectors should be aware that pay-per-inspection policies sometimes don’t offer the same level of protection, though.
Before purchasing a less protective pay-per-inspection policy, home inspectors should discuss their coverage needs with a knowledgeable agent. An agent can usually find a standard policy that’s still quite affordable and provides all of the protections an inspector needs.
For help finding home inspector insurance in Massachusetts, contact the independent insurance agents of Haberman Insurance Group. Our agents have worked with many home inspectors in the state, and they’re ready to assist you.