Questions about home inspectors

Q: I hope you won't mind answering four questions, rather than just one. Here goes: 1) How easy is it to become a home inspector? 2) Is it easy for home inspectors to find clients? 3) How many inspectors have errors and omissions insurance? 4) What is the biggest issue affecting home inspectors?

A: Here are four answers to your cutting-edge questions:

1) How easy is it to become a home inspector?

Entering the home inspection business is easier than it ought to be in many states, especially those without mandatory licensing. In unlicensed states, all you need is a box of business cards, a flashlight and a ladder. In states that require licensing, a novice inspector can qualify by taking a crash course in home inspection, often online and passing a state license exam. To become a home inspector, in the best sense of the word, is an entirely different matter. That requires years of hands-on experience and large doses of ongoing education. Highly qualified home inspectors are those who have performed thousands of actual inspections.

2) Is it easy for home inspectors to find clients?

Finding clients is a matter of relentless perseverance, as is true in any business. New home inspectors must market their services continually to Realtors, in hopes of obtaining referrals to homebuyers. This kind of marketing is persistent work and the rate of results is not always encouraging. Most agents already have their favorite home inspectors. Convincing them to try a new inspector is usually not easy. On the other hand, there are agents who are not looking for qualified home inspectors, fearing that “too much” disclosure might kill the sale. These are the agents who commonly provide experience for fledgling inspectors.

3) Do most home inspectors have errors and omissions insurance?

Approximately three-fourths of all states required errors and omissions insurance for home inspectors. In other states there are many uninsured inspectors, although accurate statistics on this are not available. Some inspectors forego insurance because the premiums are inordinately high and continually rising. Others choose to be uninsured for fear that the “deep pockets” provided by an insurance policy will attract frivolous lawsuits. If E&O insurance was mandatory for all home inspectors, the increased numbers of insured inspectors might enable underwriters to lower their premiums. On the other hand, more insured inspectors would likely produce more claims, necessitating higher premiums. Homebuyers and their agents should insist on E&O insurance because the costs of some claims could be well beyond the pockets of an individual inspector.

4) What is the biggest issue affecting home inspectors?

The biggest issue for home inspectors is liability. Home inspectors can be sued for actual negligence and for alleged negligence. Old-timers in the profession will tell you, “There are two kinds of home inspectors: those who have been sued and those who will

be.” This is the ongoing bane of every home inspector. It is the primary reason to consider carefully before entering casually into this demanding, high-risk profession.

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