4 Best Home Inspector E&O Insurance for 2023

Thang Truong
Thang Truong
Updated on:

Home inspection is an essential part of the real estate buying process. A home is a huge investment and has an enormous amount of emotions involved. This leaves any mistakes the home inspector makes subject to lawsuits. And that is the reason why home inspectors need Errors and Omissions (E&O) insurance. 

Top 4 Providers of Home Inspector E&O Insurance

Finding a good home inspector E&O insurance policy can be tricky since so many companies offer this insurance product. We researched 10+ companies and below are the top 4 providers that we recommend.

>>MORE: Best Professional Liability Insurance Companies for Small Businesses

CoverWallet: Best for Comparing Online Quotes

Cover wallet says they combine algorithms, science and magic to create their online quoting system. 

In addition to their online quotes, which are ready in a matter of minutes, they can provide a certificate of insurance any time you need one, for free. They can also provide whatever level of coverage you want—basic coverage to satisfy state requirements, or more comprehensive coverage. 

A screenshot of a cell phone

Description automatically generated

If you are looking for a cheap home inspector E&O policy, you’d want to shop around to compare several quotes to find the cheapest one. Getting several quotes from several companies can be time consuming. Working with a digital broker like CoverWallet can be a good option since they are able to provide you with several quotes from the companies that they partner with after processing your information.

Inspector Pro: Best for Comprehensive Coverage

Inspector Pro has over fifty years providing insurance for real estate professionals. They can cover most of the exposures a home inspector faces, such as radon, termites, mold, and septic. They are available in all fifty states as well as Canada. 

To apply for coverage from Inspector Pro, simply click on your state to find out what the requirements are. You can then fill out the short form and they will contact you, or you can fill out the application and get coverage right away. They do ask you to describe what inspection standards you use, what type of reports you use, and several other questions related to how you usually do your business.

Biberk: Best for Affordable Coverage 

Biberk is part of Warren Buffet’s Berkshire Hathaway. They have forty years of experience insuring small businesses. 

They claim to insure small businesses directly—no middleman, no insurance broker—which results in up to 20% lower prices. They insure just about every kind of small business, so if you ever decide to switch careers, you can still stay with Biberk.

A screenshot of a cell phone

Description automatically generated

InsuranceBee: Best for Customized Insurance

Insurance Bee started in the insurance business in 2010 with the idea of making getting liability insurance quick and painless. They can get you a quote online, if you’re a home inspector, but we were unable to provide all of the information that was needed. 

Most of their reviews praise how easy it was to buy a policy and how responsive they are. You can change or modify your policies at any time. 

If you prefer to talk to a person, they have advisors that can help you. 

This screen shot shows how detailed the application is.

A screenshot of a cell phone

Description automatically generated

What is Home Inspector E&O Insurance?

Errors and Omissions insurance is another term for professional liability insurance. This insurance will protect you in case you make a mistake (errors) or fail to do something (omissions). Some home inspectors say that it’s not a matter of if you’ll be sued, it’s when you’ll be sued. 

For more on professional liability insurance, see “What is Professional Liability Insurance? And Its Cost?”

Who Needs Home Inspector E&O Insurance?

Anyone who does home inspections for a living needs errors and omissions insurance. Home buyers are excited and emotional over the purchase of a new home. The home inspector tells them everything is fine, but when they move in, they discover that the HVAC system is faulty. They feel the home inspector was negligent in not telling them and they file a lawsuit. 

On the other hand, the seller of a home may file suit against a home inspector if the potential buyer loses interest in the sale because the home inspector reported defects. According to The Real Deal, nearly one third of all terminated real estate contracts are canceled because of the home inspection. 

All of this can leave a home inspector feeling like there’s no way to win. If you do a meticulous inspection and the buyer backs out, the seller could sue. If you miss something, the buyer could sue. 

What does Home Inspector E&O Insurance Cover?

Most errors and omissions insurance will cover:

  • Legal fees
  • Settlements
  • Defense costs
  • Judgements

Unhappy clients can sue you just because they’re angry and frustrated. The lawsuit may be frivolous, but you still have to defend yourself in court and that can be expensive. 

Many states require home inspectors to have some kind of insurance. New Jersey, for example, requires home inspectors to carry an E&O policy with a minimum of a $500,000 aggregate.

What doesn’t It Cover?

Home inspectors often deal with toxic substances, and these are often excluded. Mold, radon, termites, and septic systems.

It also won’t cover you in the case of fraud or criminal activity. 

How Much does E&O Insurance Cost for Home Inspectors?

CoverWallet, an online commercial insurance broker, estimates that a basic E&O policy ranges from $600 to $1200 a year, depending on how much coverage you want and what state you live in. 

If you often inspect for toxic materials such as radon, mold, or asbestos, a policy starts at about $2,000 a year. 

We are able to get 2 quotes from the top 2 companies above and it costs $150-$200 a month for home inspector E&O insurance policy.

Costs vary by companies. You need to shop around with a few companies to compare quotes to get the cheapest policy for your situation. Working with a digital broker like CoverWallet or Simply Business can be a good option since they make it convenient for you to compare several quotes in one place.

>>MORE: Errors and Omissions (E&O) Insurance Costs by Professions

>>MORE: Where to Get No Down Payment Errors and Omissions (E&O) Insurance?

What Benefits Should I Consider When Purchasing E&O Insurance?

You should figure out how much you can afford and weigh that against what is covered in the policy. You should also realize the risk of potential lawsuits against home inspectors has been increasing. 

If you are an independent contractor, it’s definitely worth it to get E&O insurance. Even if you work for a company, you should be aware that their E&O insurance covers the whole office, which could potentially be wiped out in one expensive lawsuit. It’s a good idea to have your own E&O insurance, even if your state doesn’t require it. 

>>MORE: Real Estate E&O Insurance: Cost and Top 5 Providers

>>MORE: The 9 Best E&O Insurance Companies for Small Businesses

Last Thoughts

Home inspectors are an essential part of the property buying process. If things don’t go the way someone was expecting, they could lash out by suing you. Many states require some form of errors and omissions insurance. Even if yours doesn’t, it’s a good idea to have it. Some home inspectors say it’s not a matter of if you’ll be sued, but when. Prepare for the worst by getting errors and omissions insurance.

Click to rate this post!
[Total: 0 Average: 0]
Thang Truong
Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

Milepost Joins Truckstop: A New Dawn for Commercial Truck Insurance

The trucking industry is about to witness a significant shift in how insurance policies are procured, managed, and serviced. Milepost Insurance Agency LLC, a renowned Berkshire Hathaway enterprise, has recently collaborated with Truckstop, thereby pioneering a new era in trucking insurance for independent owner-operators. Revolutionizing the Insurance Experience The primary aim behind this dynamic partnership […]

Thang Truong
Thang Truong

Navigating Commercial Truck Insurance Premiums in 2023

Commercial truck insurance has become a focal point for many in the transportation sector as we delve deeper into 2023. With premiums seeing significant spikes in recent years, stakeholders are asking: Are we approaching a stabilization or even a decrease in these rates? Insights from industry experts provide clarity on this critical concern. Trends in […]

Thang Truong
Thang Truong

Regulatory Changes and Rising Commercial Truck Insurance Costs in California

In the wake of the passing of California’s AB5 bill, the trucking industry, including drivers and insurers, face unforeseen challenges. The legislation threatens to severely disrupt contractual trucking gigs, leading to rising insurance costs and potential operational changes. AB5 – A Potential Setback for Owner-Operators AB5, signed into law by Governor Gavin Newsom in 2019, […]

Thang Truong
Thang Truong

Finding Balance in Commercial Truck Insurance: Costs, Value, Services, and Long-Term Benefits

Navigating the maze of truck insurance offerings is not just a matter of finding the lowest price. It’s about understanding the nuances of what you’re buying, considering long-term benefits, and ensuring a harmonious relationship with your provider. This article offers a detailed examination of the process, unfolding the aspects of costs, value, services, honesty, and […]

Thang Truong
Thang Truong

New SEC Regulations on Cybersecurity and AI: A Comprehensive Overview

In an era where technology is at the forefront of business operations, the U.S. Securities and Exchange Commission (SEC) is taking decisive steps to ensure transparency and ethical practices. On Wednesday, the SEC was set to introduce new regulations that will impact publicly traded companies in two significant areas: cybersecurity and artificial intelligence (AI). These […]

Thang Truong
Thang Truong

6 Best Malpractice Insurance for Nurse Practitioners for 2023

Nurse practitioners have a great deal of responsibility when it comes to patient care. Many nurse practitioners assume that because they work under a doctor and their employer provides some level of malpractice insurance, they’re covered. It may be worth it to purchase your own policy, however. Employer malpractice insurance is to protect the employer, […]

Thang Truong
Thang Truong

6 Best Warehouse Insurance and Costs for 2023 

In the fast-paced world of logistics and supply chain management, warehouses play a pivotal role. They serve as the backbone of industries, storing a wide variety of goods that are integral to our daily lives. However, with such responsibility comes a multitude of risks. From natural disasters and fires to theft and accidental damage, warehouses […]

Thang Truong
Thang Truong

5 Best Retail Insurance Companies & Costs for 2023 

The retail industry can be an exciting and profitable venture. However, it’s also fraught with risks that could potentially disrupt operations and result in significant losses. This is where retail insurance comes in. 5 best retail insurance companies Simply Business: Best for comparing several quotes from top-tier carriers  Simply Business is a leading online insurance […]

Thang Truong
Thang Truong

How Much Does Daycare Insurance Cost in 2023? 

In the ever-evolving landscape of childcare, ensuring the safety and well-being of the children under your care is paramount. One crucial aspect of this responsibility is securing comprehensive daycare insurance. This coverage not only protects your daycare business from potential liabilities but also provides parents with the assurance that their children are in a safe […]

Thang Truong
Thang Truong

7 Best Film Production Insurance, Cost, & Coverage

The world of film production is thrilling, dynamic, and filled with creativity. However, it also comes with considerable risks ranging from personal injuries and equipment damage to legal issues. To mitigate these risks and protect the investment, having a comprehensive film production insurance is essential. This article aims to provide an understanding of why such […]

Thang Truong
Thang Truong