The Claim Arrives After the Buyer Moves In.
Protecting inspectors, clients, and referring agents
Home inspectors deliver a visual, non-invasive opinion on a home's condition during a real-estate transaction — and their defining risk is a defect discovered after closing that the buyer says should have been reported. That missed-defect claim is an errors-and-omissions exposure, separate from the general-liability risk of damaging a home or injuring someone during the inspection, and it is the one many inspectors are underinsured for. Add the referring agents who expect additional-insured protection, and an inspector needs a program built around E&O, general liability, and referral coverage. This is a specialized corner of professional services insurance built for how inspectors actually get sued.
Properly structured coverage protects the inspector, the client, and the agents who send referrals.
The Home Inspector's Signature Exposures
Errors-and-omissions for missed defects is the signature claim: after closing, a buyer finds a leaking roof, foundation cracking, mold, or a failed system and alleges the inspector negligently missed or failed to report it, causing financial loss — and missed-defect complaints are even more common than general-liability claims. The critical point is that general liability does not cover a missed defect; that is an E&O exposure. Around it sit two more: general liability for damage or injury during the inspection — falling through an attic, breaking a fixture, damaging a roof, or a client hurt on site — and referral liability, since real-estate agents who refer the inspector can be drawn into suits and often require additional-insured status before sending business.
Key Risks in Home Inspection
Home inspectors face exposure related to:
Missed or unreported roof, foundation, or structural defects
Mold and moisture discovered after purchase
System failures — HVAC, electrical, or plumbing — shortly after closing
Falling through a ceiling or attic, or breaking a fixture, during an inspection
Injury to a client, agent, or occupant on site
Referring agents drawn into a suit
Incomplete or ambiguous report wording
The missed-defect E&O claim — distinct from general liability — is the exposure that most defines the inspector.
Core Coverages for Home Inspectors
A properly built inspector program typically includes:
Professional Liability / E&O — Covers defense and damages when a client alleges the inspector missed or failed to report a defect, or the report was negligent — the core coverage, written claims-made, and the one general liability does not provide.
General Liability — Covers third-party bodily injury and property damage caused during the inspection, such as a fall or a broken fixture.
Additional Insured (Referring Agents) — Extends coverage to real-estate agents and brokers who referred the inspector — often required to receive referrals.
Commercial Property / BOP — Covers the inspector's equipment, tools, and office.
Commercial & Hired / Non-Owned Auto — Covers vehicle liability for an inspector who drives constantly between jobs.
Workers' Compensation — Provides legally required coverage once the firm has employees or sub-inspectors.
Cyber Liability — Addresses report-platform and client-data exposure.
Umbrella / Excess Liability — Adds higher limits above general liability and auto.
What's Commonly Overlooked
Home inspector programs are most often weakened by:
Carrying only general liability and assuming it covers missed defects — it does not
No additional-insured coverage for referring agents
A retroactive date or missing tail on claims-made E&O
No commercial or hired-and-non-owned auto for constant driving
Ancillary services — radon, mold, pool, sewer scope — not disclosed or covered
The gap that hurts most is assuming general liability covers the missed-defect claim.
Real-World Claim Examples
A roof leak surfaces weeks after closing and the buyer says it should have been flagged
Foundation cracking or settlement is alleged to have been visible and missed
Mold is discovered after purchase and blamed on a missed moisture indicator
An inspector steps through a ceiling or cracks a fixture during the inspection
A referring agent is named in the suit and seeks defense as an additional insured
Any one of these can be significant, and the missed-defect claim is the most common.
Regulatory & Licensing Context
Home-inspector licensing varies widely by state — many states license inspectors with education, exam, and continuing-education requirements, while others don't require statewide licensure — and several states mandate a minimum errors-and-omissions or general-liability limit, or accept a surety bond as an alternative. Professional standards of practice from the major inspector associations are the de facto benchmark and strongly recommend carrying both E&O and general liability even where not required, and a defensible inspection follows the applicable standard and a written pre-inspection agreement.
Why Proper Placement Matters
Underwriters weigh revenue or the number of inspections, the number of inspectors, ancillary services performed, geography and its claims climate, experience and credentials, prior claims, and the use of written pre-inspection agreements and standards compliance. E&O is claims-made, so the retroactive date and tail matter, while general liability is typically occurrence-based. Placing the program with inspector-specialty markets, and confirming E&O, referral coverage, and prior-acts continuity, is what keeps the coverage sound.
Our Approach
At Cory Washington & Co., we insure home inspectors around the claim that arrives after the buyer moves in. We pair missed-defect E&O with general liability so both the report and the on-site risk are covered, add additional-insured protection for referring agents, and coordinate auto, cyber, and umbrella into one program placed with inspector-specialty markets — with attention to prior-acts and tail. We also insure related professionals, including real estate appraisers and the real estate businesses that refer them, and the broader professional services category.
The defect you can't see today can be the claim you face tomorrow — we build coverage to answer for it.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
Frequently Asked Questions
How do I get home inspector insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate home inspector insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How much does home inspector insurance cost?
It depends on your exposure. Home inspector insurance is priced on factors like your industry, size, prior claims, and the limits and deductibles you select — so two businesses rarely pay the same. We shop your account across competing carriers and present the trade-offs in plain English.
Who needs home inspector insurance?
Requirements vary. Home inspector insurance may be mandated by statute, or required under your contracts, leases, or loan agreements — and in many cases it is simply prudent given the risks involved. We look at your specific obligations and exposures, then recommend the coverage and limits that fit.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.