Troubles with uninsured home inspector

DEAR BARRY: We bought our home about two years ago and thought we had hired a competent home inspector. Since then, we have had numerous problems that were not disclosed in the inspection report.

We called our inspector about these issues and were shocked to learn that he does not have malpractice insurance.

Aren’t home inspectors required to be insured?

— Dana

DEAR DANA: In most states, there are no requirements for home inspectors to be insured for liability. Inspectors who carry insurance do so as a matter of choice, as a statement of professional accountability and as a protection from major financial loss. Being insured is an acknowledgment to themselves and to others that any inspector can make a mistake in the course of an inspection and that steps should be taken to protect themselves and their clients from damages that might result.

Liability insurance for home inspectors is commonly known as "errors and omissions" (E&O) insurance, not malpractice insurance. Uninsured inspectors generally fall into two separate categories:

• There are inspectors who operate their businesses from the kitchen table, maintaining low overhead in deference to professionalism. This enables them to charge less for their services as a means of competing for business with more qualified and experienced companies.

• On the other hand, there are highly competent home inspectors who choose not to carry E&O insurance for fear that the “deep pockets” of an insurance company will serve as a magnet for frivolous lawsuits.

The home inspector in your situation may not be a No. 2. Either way, lack of adequate insurance can be decisive when choosing a qualified home inspector. It's one of many reasons to shop carefully before hiring just anyone.

To write to Barry Stone, go to www. housedetective.com.