Ontario Home Inspections - Insurance and Other Considerations

The home inspection industry in Ontario  is completely unregulated. You can declare yourself a home inspector right now, and you are just as legally entitled as me to offer your services as Ontario’s newest home inspector.

But because there is no standard license or certification in our jurisdiction, you need to do your homework when hiring a home inspector.

There is no requirement for an Ontario home inspector to be  a member of an association, to follow an accepted standard of practice, to work under an agreement signed by the client, to have any relevant experience or education, or even to be insured.

Insurance is by far the biggest ongoing  expense for home inspectors and the rates for many of us have been going up by more than 50% annually over the last few years even though most of us have never made a claim.

My industry has had its share of challenges with the fluctuation in the real estate market lately, but this increasing cost is the biggest ongoing challenge.

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 a potential client or someone finding referrals for others, you need to ask some questions.

What is their background? Like any profession, it takes a combination of education and experience. And it takes 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.

Are they inspecting to an accepted standard?
Without a standard of practice, how do you know what to expect from their service? You have no agreement to fall back on in case there is a dispute. 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.

And the big one: Are they insured?

An inspector should have two types of insurance. Errors and Omissions insurance 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.

We also should have liability 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.

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 hundreds of thousands of dollars for a place to put your family. And you are choosing to hire an inspector for a reason. It’s your responsibility to choose the  professional that will best help you and protect you, and I’d like to think that your decision should be based on more criteria than saving 50 or 100 bucks.