The home inspection industry in Ontario is completely unregulated. There are no laws or rules governing the practice. Seriously. Zero, zilch, nada. You can declare yourself a home inspector right this minute, and you are just as legally entitled as me to offer your services as Ontario’s newest home inspector.
There are no requirements for an Ontario home inspector to have any relevant experience or education or even to be insured. We certainly aren’t required to be a member of an association, to follow an accepted standard of practice, or to work under an agreement signed by the client. These are all 100% voluntary.
Because there is no standard license or certification in Ontario, you need to do your homework when hiring a home inspector. Your realtor may refer you a home inspector or multiple inspectors. They may trust the professionals they refer, and if you trust your realtor, it stands to reason that you might trust their referred inspector. I get a lot of my referrals through real estate agents and none the referrals are based on anything other than a mutual desire to properly serve our clients. Remember though, you are buying the house and paying the inspector. So you have the right and the responsibility to ensure you are hiring the right professional. (And my rule of thumb is this: if someone isn’t able or willing to answer your questions, they don’t deserve your business)
Partial list of questions you can ask a home inspector:
Question 1: Are you insured?
Insurance is by far the biggest ongoing expense for home inspectors and the rates continue to rise. This increasing cost is the biggest ongoing bite out of my bottom line. I could raise my profits significantly by simply cancelling my insurance, but of course that would be foolish. I would lose the protection it provides me. My clients and the owners of the houses I inspect also benefit from my insurance, and I would never leave myself or anyone involved in the inspection process vulnerable without insurance. Unfortunately, many inspectors don’t want to pay this signficant expense.
An inspector should have two types of insurance:
A. Errors and Omissions insurance. Also known as E&O, it protects the client in the event that there is a problem with the report. Maybe something was reported incorrectly, or not reported at all, and that error or omission led you to making a huge financial decision. That insurance is what helps you recover those potential damages.
B. Lability insurance. We are going into a variety of properties and homes. We could cause damage or hurt someone. Of course we don’t want to, but accidents happen. As a professional, it’s only proper that we carry insurance to protect others.
Question 2: What is your background?
Like any profession, it takes a combination of education and experience. It helps tp have an eclectic background to walk into any home in Ontario and be able to figure how it’s built, how everything works, and what is wrong with the house, no matter the age of the house or how it’s built.
There are many ways that an inspector can get their education and experience. They have worked as a framer, an electrician, a renovator, etc. They may have an education in architecture or engineering. They may have taken a home inspector course. Ultimately, they need to be able to walk into any home whether it was built in 2010 or 1880 and be able to identify the components and defects in that home. Most home inspectors have a unique pathway and you need to pick the one that suits you.
Question 3: Are you inspecting to an accepted standard?
Without a set standard of practice, how do you know what to expect from their service? You would have no agreement to fall back on in case there is a dispute. An inspector should be working to a CSA standard or a standard of an inspection associaiton. Don’t just take it for granted that all inspectors are doing the same thing. We aren’t, and our service is not a commodity.
Question 4: Are you part of any inspection associations?
There are several prominent home inspection associations in Ontario such as OAHI, CAHPI, InterNACHI, etc. Some are better than others and they all have different requirements for membership and certification. They exist to help maintain professionalism and skills in the industry. They also review complaints levied against home inspectors that are in their association. Without any regulation, this is the only dispute resolution method available other than taking legal action. Some associations require member inspectors to carry insurance and all associations require adherence to an inspection standard.
Question 5: What is the fee?
There are no set fees for home inspections. Inspectors set their own fees however they wish. You may be enticed by some inspectors offering services for very low prices, and if they can provide adequate service at those low prices, all the power to them. It’s not my place to question how another person runs their business, but as with anything, you often get what you pay for. When someone has pricing signficantly lower than their peers, are they cutting costs by avoiding insurance? Are they subpar or inexperienced requiring them to lower their price to get business? Or are they fortunate enough to be able to give people a good deal with a good service?
I guarantee that you can find inspection services at a lower price than I charge. And I’m okay with that. I know what I’m worth and I know what I need to earn in order to continue to run my business and support my family. And I know what it costs to voluntarily pay association dues and insurance premiums. I’m okay with some not wanting to pay what I charge.
But remember this: You are spending many hundreds of thousands of dollars for a place to put your family your business or to invest your savings. It’s your responsibility to choose the professional that will best serve your needs, and I’d like to think that your decision should be based on more criteria than saving 50 or 100 bucks.
In Conclusion:
There are so many more questions that you might want to ask a home inspector before you hire them. You could also ask for references or a sample home inspection report. You can ask when you can expect to receive the report after the on-site portion inspection.
Just like any product or service, there is a wide variety of home inspectors out there. Take care to make the right choice. A home inspection is a one-time opportunity to have a house reviewed meticulously by an inspector and you need to be satisfied that they are up to the task. Even with industry regulation, it’s important to choose wisely. Even moreso without any regulation at all.