Home inspector’s liability often limited to refund

Q: We bought our home two months ago, and our home inspector said the roof was in good condition. But we just had a big rain, and now the living room is all wet. The roof repairs will cost $860, and we’ve also had to pay $250 for some electrical outlets that didn’t work. According to the home inspection contract, the inspector is only liable for a refund of the inspection fee, which is only $350. Is this all we are entitled to after a negligent home inspection?

A: Limits on home inspector liability are common in most home inspection contracts. Whether it is legal and enforceable to set this limit at a mere refund of the inspection fee is a matter that varies from state to state. Some states recognize such limits, and some do not. However, your home inspector may or may not have been negligent, depending on whether the defective roofing and electrical conditions were visible and accessible on the day of the inspection.

In some cases, roof inspections are limited by steepness, weather condition or fragile types of roofing materials. If your roof was accessible on the day of the inspection, visible defects should have been reported by your inspector. If the roof was not fully inspected for any reason, this should have been stated in the report, including a recommendation for further evaluation by a licensed roofing contractor prior to close of escrow.

There are also variables that affect disclosure of faulty electrical outlets. Home inspectors routinely test wall outlets that are accessible. This does not include outlets that are located behind heavy furniture. The fact that all outlets were not tested is usually disclosed in most home inspection reports.

These conditions should all be considered when assessing the liability of your home inspector.

Q: We just bought an old house that needs fixing up. There’s so much to do, we hardly know where to begin. How would you suggest that we prioritize all this work?

A: The first items to repair are those that involve safety, such as electrical violations, faulty gas-burning fixtures, problems with the fireplace, or guardrails that are substandard or defective.

Second on the list are things that leak, such as plumbing fixtures, corroded pipes, faulty drains and defective roof conditions.

Next are items that affect the use and comfort of the home, such as heating and cooling systems, cooking appliances and showers.

Finally, there is the long list of cosmetic upgrades, renovations and routine maintenance and repairs. Doors, windows, cabinets and other fixtures will need various repairs or replacements.

Before you begin, a professional home inspection will help to determine which issues are most in need of attention. Hopefully you hired a qualified home inspector prior to purchasing the home. If so, you should consult your inspector for advice on prioritizing needed repairs.

• Distributed by Action Coast Publishing. Questions to Barry Stone can be emailed to barry@housedetective.com.