Don't get burned by shoddy home inspection

You’d think that when an inspector misses an obvious defect, one that costs you a substantial amount of money to correct, you’d be able to sue for damages. But that’s rarely the case. Most home inspectors have clauses in their contracts that limit their liability to what you paid them.

“Even if they miss tens of thousands of dollars in defects that they should have caught, you may only be able to collect the cost of the report,” says Seattle attorney Dave Von Beck, who specializes in construction cases. Von Beck says most home buyers probably don’t realize this.

When you are interviewing potential inspectors, find out if they have errors and omissions insurance. “A responsible, prudent inspector is going to carry E & O insurance,” says Everett Rawlings, President of the National Association of Home Inspectors.

Be realistic
Home buyers need to have a realistic expectation of what a home inspector — even the best inspector — can do for them. A home inspection is not a guarantee or warranty of condition. It’s an opinion.

That’s why the training, experience and professional judgment of that inspector is critical. “Just like a doctor, dentist, or attorney, it’s his or her opinion and judgment that you are relying on,” says Alan Mooney of Criterium Engineers.

“If we don’t see dry rot, but we suspect rot,” Mooney says, “we should express that opinion.”

There’s nothing you can do to guarantee the inspector will spot all the visible problems. I’ve spoken to homeowners who used highly-recommended companies that missed costly defects. Still, it’s the best thing you can do to prevent expensive surprises.

I’d look for a certified inspector who belongs to the American Society of Home Inspectors or the National Association of Home Inspectors. A certified inspector must pass written tests, have performed 250 paid inspectors, and take continuing education courses. Both ASHI and NAHI have a set of standards and code of ethics members must follow.

The National Academy of Building Inspection Engineers has significant standards and requires members to be licensed professional engineers.

If you live in an area where mold or pests are a common problem, make sure the inspector is trained for that.

The prime rule: Be there for the inspection
You need to be involved in the inspection process. If you are there, you can see what the inspector sees and have things explained to you. By walking around with the inspector and asking questions, you should feel more confident and comfortable with what he’s telling you.

One more thought. Considering how much money is on the line, I would urge you to consider having two inspections. Hire a general home inspector and a structural engineer. The structural engineer might spot things the other inspector missed.

Is it worth spending more for a second opinion? “Absolutely!” says Marlene Koltin. “It’s money very well spent.”

For more information:

• Frequently Asked Questions on Home Inspections
• ASHI: Virtual Home Inspection
• NAHI: What to expect from a home inspection
• NAHI: What not to expect from a home inspection
• 100+ Questions Before Buying Your New Home

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