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Best Home Inspector Insurance of 2022

Bryan Keith

For home inspectors, risks can range from causing damage to a home owner’s property to giving improper advice. Home inspector insurance can protect your business against potential lawsuits and claims of negligence during a home inspection. We’ve evaluated the best home inspector insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Offers a range of insurance poilicies

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Simply Business provides insurance policies for a range of professions and small businesses.

What we like

  • Various business insurance policies
  • Quotes from multiple providers
  • Fast and easy application
  • Strong customer satisfaction

What we don't

  • Policies are a through a third party
  • Claims must be filed through insurance provider

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

eCommerce-only insurance solution

$2,000,000

Coverage Up To

$0 - $5,000

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is home inspector insurance?  

A home is a large investment for most homeowners. If you make a mistake, you could be held liable for financial losses and damages with the risk of facing a costly lawsuit.

Home inspector insurance is business insurance that can provide coverage for legal costs, property damage, and medical expenses if there is an injury. 

Does a home inspector need insurance?

Home inspectors could benefit from taking out business insurance to provide coverage for professional errors, liability, and damages. As you’ll be required to thoroughly inspect a home before a buyer purchases a property, any mistakes or incorrect recommendations could result in a lawsuit. 

What insurance do home inspectors need?  

When taking out home inspector insurance, it’s important to consider different types of policies to adequately cover your business for legal liability and potential financial losses.  

The most common types of policies for home inspectors are:

General liability insurance

As a home inspector, your first thought might be to take out professional liability insurance since this covers any mistakes and errors made during inspections. However, home inspectors can benefit from general liability insurance as this covers important risk factors such as causing property damage to a client’s home during an inspection. If you accidentally break an expensive object or while inspecting the roof you damage some tiles, you could be held liable. 

General liability insurance provides coverage related to third-party bodily injury, third-party property damage, copyright infringement, medical costs, legal costs, and settlements from a lawsuit.

Common exclusions include employee injuries, commercial auto accidents, professional errors, and customer data breaches. 

Professional liability insurance

As a home inspector, you have a responsibility to make sure you document your findings. However, if there’s an oversight where you miss the potential for mold or a fire hazard, it could result in your clients incurring financial losses. Professional liability insurance can protect your business against accusations of wrongdoing where your client files a lawsuit for negligence.

Coverage for professional liability insurance can include accusations of negligence, legal defense costs, legal judgments, breach of contract, damages, and missed deadlines.

Exclusions for professional liability insurance can include workplace accidents, property damage, intentional wrongdoing, and illegal activity.  

Workers’ compensation insurance

If your home inspection business hires employees, most states require you to have worker’s compensation insurance in place to cover employee benefits if they have an accident or are injured on the job. If an employee has a work-related accident due to negligence, they could take legal action that requires your business to pay their wages during recovery and medical bills. 

Coverage for workers’ compensation insurance can help pay for medical care related to work-related injuries and accidents, lost wages, disability benefits, death benefits, legal expenses, and settlement.  

Exclusions to coverage can include non-work-related injuries and medical costs if the employee had a pre-existing condition.  

Commercial auto insurance

As a home inspector, you will likely use a vehicle to drive to different properties for inspection. Many states require business-owned vehicles to be insured. If you get into an accident and cause damage to another vehicle on your way to a client’s property, home inspection insurance can help pay for damages and medical costs related to the accident. 

Coverage for commercial auto insurance can include medical expenses, collision repairs, uninsured motorists, and legal fees.  

Exclusions can include drivers under the age of 18, food trucks, and passenger transportation businesses.

Commercial property insurance

If you own or rent physical space for your business, you could benefit from commercial property insurance. Coverage can protect the building and equipment required to do business. For instance, if a fire destroys your office, commercial property insurance can help pay for damages and repairs that need to be made. 

Commercial property insurance coverage can include damage that results from covered events such as fire, vandalism, explosions, and falling objects. 

Exclusions can include intentional damage to business property by employees and damage due to natural disasters such as hurricanes and earthquakes. 

What are the limits of home inspector insurance?

When you take out a home inspection insurance policy, your limits will determine the maximum amount you can claim in a given policy period. Limits for general liability insurance and professional liability insurance can average $1 million per policy period.

When taking out a home inspection insurance policy, it is important to distinguish between per occurrence limits and aggregate limits. Policies with a per-occurrence limit have a maximum amount you can claim per policy period for a single incident. An aggregate limit covers you for a maximum payout including all claims per policy period.

How much does home inspector insurance cost?

Several factors go into the calculation of home inspection insurance, and policy premiums can vary from one business to another.  

Here are some factors that insurers will consider when providing a quote:

  • Coverage limits: The limits you require will depend on the size of your business. As your business grows and you hire more employees, you’ll need to increase your limits to provide adequate coverage for your business. This can be reflected in a higher premium. 
  • Type of services: Different jobs have risk factors that need to be taken into account. For instance, inspectors that test mold, asbestos, and other hazardous materials can expect to pay a higher insurance premium. 
  • Claims history: If you have successfully made claims in the past, this will be taken into account by your insurer and factored into your policy price.
  • Business location: If your business is located in an area that attracts a high rate of lawsuits, you can expect to pay a higher premium.
  • Years of experience: Home inspectors with fewer years of experience are likely to make more mistakes compared to experienced home inspectors. This can raise the cost of insurance. 
  • Deductibles: The higher your deductibles, the lower the premium. This can require you to pay more in out-of-pocket expenses when you go to file a claim.  

How to choose the best home inspector insurance

When looking for the best home inspector insurance policy, here are some key factors to consider before you make a purchase:

  • Read the fine print: Mistakes can be costly. You should read the terms and conditions to ensure that you take out adequate coverage for legal proceedings. Be aware of any exclusions that can apply to your specific policy. This can help to avoid rejection when filing an insurance claim, and finding out that your business is not covered.   
  • Compare providers: When looking for an insurer, it’s a good idea to compare multiple policies to find the best home inspection insurance plan for your business needs. If you are unsure whether the services provided by your business are covered, you can ring the insurer for clarification.  
  • Umbrella policies: If you believe that your insurance claims risk exceeding policy limits, umbrella insurance can help extend coverage limits. This can add an extra layer of protection for your business which can save you from paying out-of-pocket if there is a costly lawsuit.