The Unlucky Duct

The following is a real first-year home inspector’s claim from our archives. To protect the insured’s identity, all identifiable characteristics from this home inspector’s E&O claim—including names, associations, and locations—have been altered or removed.

Just a few months into his inspection career, a new home inspector received his first complaint. The client called him back to the house, where he pointed out seven inches of damaged air duct in the attic. Cold air was blowing out of the duct and into the attic, despite the client’s attempts to patch it with duct tape. 

As if that wasn’t enough, the cold air had been leaking throughout the peak summer months—and in a humid climate, to boot. When warm air meets cold air, condensation occurs. Over a prolonged period of time, condensed water can drip down and penetrate the surrounding wood structures.

That’s most likely what happened here. The water damage on that side of the roof was so severe that the wood had rotted around the soffits, and part of the roof had become concave. Between repairing the roof and replacing the ductwork, the client demanded nearly $15,000 in repair costs. 

Just like that, our insured faced his first home inspection claim ever.

Luckily for him, getting an insurance policy was one of the first steps he’d taken when starting his new career. His policy started in May, and he was hired for this inspection exactly two months later, in July. Our claims-handling team wasted no time investigating.

The Resolution

Our team reviewed the report and supplemental photos from the inspection. In doing so, we confirmed the inspector had inspected the visible ductwork, and nothing was out of the ordinary. 

Based on his inspection photos, insulation was covering the attic floor and most of the ductwork, including the damaged air duct. The inspector couldn’t have moved the insulation to check underneath, nor was he required to report the adequacy of the entire duct system.

The roof damage had also been concealed at the time of the inspection. As seen in the listing photos, the sellers had an awning that obstructed the inspector’s view. Moreover, shrubbery around that side of the house prevented him from standing directly below the affected area and seeing it from different angles. The client only discovered the roof damage after he moved in and tore down the awning.

Our claims team quickly determined the inspector was not liable for missing the ductwork defects or roof damages. We issued a denial of liability letter on his behalf and closed the first-year home inspector’s claim at no cost to him, not even his deductible.

Lessons for New Home Inspectors in Their First Year

Not all home inspection claims have such happy endings. 

So, what can you learn from this brand-new inspector’s claim success story? If you mentor new inspectors, what advice can you share to set them up for success in their first months inspecting?

This story highlights the value of thorough photography, clear client expectations, and securing coverage from day one.

1. Your camera is your inspection copilot. Use it.

New inspectors often assume they should only take photos of defective systems and components. But what if the buyer opens up the walls or removes obstacles, like insulation or an old awning, and reveals defects that were previously concealed or inaccessible? What if they blame you for problems that developed months or even years after your inspection?

What your clients probably don’t know is that inspections are a snapshot in time. Your scope is limited to time-sensitive, accessible, and visually observable systems and components. If you want to shut down frivolous claims in a fraction of the time, photos are your best friend. 

That’s why an important skill for the beginning home inspector is photography. In addition to defects, take photos of entire rooms, non-defect areas, and any obstructions or hazards that make a space concealed or inaccessible. That way, if existing problems get worse or new problems develop later on, you have evidence of everything you saw. 

It may feel excessive at first. But the more photos you take now, the fewer headaches you’ll have later. Just be sure to store inspection assets like your photos, videos, reports, and signed pre-inspection agreements in a digital cloud for safekeeping.

For more tips, read our technology articles at inspectorproinsurance.com to learn about using photos to manage your risk.

2. Clear expectations are key.

You know inspectors can’t see through walls. To your clients, however, that isn’t so obvious.

You can’t assume they’ve read your SOP or been coached about your limitations. Odds are, they probably haven’t. Even if they’re buying their second, third, or fourth home, prep them like it’s their first home inspection ever.

Set clear expectations before, during, and after the inspection. Tell them what a home inspection is, what your process does and doesn’t entail, what technology you’ll use, and where to go if they have questions. We recommend conveying your scope in your pre-inspection agreement (like our state-specific agreements, exclusive to InspectorPro’s insured inspectors), in scheduling calls, during walkthroughs, while writing your report, and in follow-up calls after they get your report. 

This footwork is essential to fostering long-lasting, trusting relationships with the clients and agents you work with. It also helps inspectors prevent claims tied to defects or areas outside your scope.

Important note: Always get your pre-inspection agreement signed before you start the inspection. If they haven’t signed, then they haven’t read about your terms, scope, and limitations. Plus, inspecting without a signed agreement can disqualify you from coverage. 

For tips on getting your agreements signed on time every time, visit our website at inspectorproinsurance.com and read our article “12 Ways to Get Your Home Inspection Contract Signed Before You Start.” 

3. Insurance matters at every stage of your inspection career.

It isn’t easy to be new. You’re learning the trade, the market, and how to launch a successful business. You’re investing in study materials, exams, associations, software, equipment, and networking opportunities. On top of all that, you might only be performing a handful of inspections at first. 

If your state doesn’t require insurance, it’s natural to wonder: If I’m not performing many inspections, can I save money and get insurance later? Do new home inspectors need insurance? Does insurance really matter at this stage of my career?

This first-year home inspector’s claim shows that it absolutely does matter. His policy went into effect less than 90 days before the inspection took place. Had he waited any longer, he might not have received coverage for the claim. 

As an insurance provider that specializes in the home inspection industry, we’ve seen firsthand how devastating claims against home inspectors can be without the right insurance in place. The financial losses alone are sometimes enough to put them out of business. And claims don’t discriminate between new and long-time inspectors. 

How common are insurance claims against home inspectors?

We estimate that more than half of all home inspectors receive at least one claim during their careers.

Whether you’re new to the field, 10 years in, or an industry veteran preparing for retirement, insurance is essential to safeguarding both your career and your peace of mind. Plus, with InspectorPro, new home inspector insurance has never been easier or more affordable.

With our 90-Day Policy, new inspectors can enjoy 90 days of coverage for just $30. It includes everything you need to start your career on the right foot, such as:

$500,000/$500,000 policy limits.

Both errors and omissions (E&O) and general liability (GL) insurance.

InspectorPro’s model inspection agreement, tailored to your state.

Pre-claims assistance to resolve complaints before they become claims.

Streamlined transition to an annual policy at the end of the 90 days.

To see if you qualify, learn more about our 90-Day Insurance Policy at inspectorproinsurance.com.

Coverage for Every Inspector, at Every Stage

Wherever your career takes you, you can count on InspectorPro to provide the home inspection insurance you deserve.

Not insured with us, but want to be? Scan the QR code or visit inspectorproinsurance.com to apply for a free quote.

Note: The Managing Risk column with InspectorPro Insurance provides home inspectors with tips to protect their businesses against insurance claims

Alyssa Guerra is the Marketing Content Editor for InspectorPro Insurance, which offers ASHI members exclusive benefits through its program: InspectorPro with the ASHI Advantage. Through risk management articles in the ASHI Reporter and on the InspectorPro website, InspectorPro helps inspectors protect their livelihood and avoid unnecessary risk. Get peace of mind and better protection with InspectorPro’s pre-claims assistance and straightforward coverage. Learn more at inspectorproinsurance.com/ashi-advantage.

Opinions or statements of authors are solely their own and do not necessarily represent the opinions or positions of ASHI, its agents, or editors. Always check with your local governmental agency and independently verify for accuracy, completeness, and reliability.