About BC Consumer Protection

Results of BC Home Inspector Insurance Survey

Was this information useful?
+ Yes
+ No

{May 24, 2011} VICTORIA, BC – Consumer Protection BC is releasing the results of a recent survey we conducted of licensed BC home inspectors in regards to their insurance requirements.

In order to maintain a licence, BC home inspectors are required to maintain a minimum of $1 million in both General Liability and Errors and Omissions insurance. The $1 million coverage amount applies on a per claim and aggregate basis. Home inspectors obtain their insurance either privately or through one of the designated associations or authorities.

Consumer Protection BC conducted the home inspector insurance survey in April 2011. This was in response to industry concerns raised regarding the amount and type of insurance required and as part of our ongoing review of the licensing program. The survey was conducted online and invitations to participate were sent via email and paper mail to all licensees.

Here is an overview of the survey results:

  • 103 of the 412 licensed home inspectors in BC responded resulting in a response rate of 25%.
  • 70% of respondents indicated they obtain their insurance through their designated association or authority.
  • 96% indicated they spend over $1500 a year on their premiums.

Overall, there was broad support for requiring both General Liability and Errors and Omissions coverage for home inspectors. 53% of respondents agreed that the current $1 million per claim and aggregate requirement for both types of coverage was appropriate. Of those that did not agree, 56% felt that a lower per claim amount versus aggregate amount was appropriate, and 58% felt a both a lower per claim and aggregate amount was appropriate.

It does appear that home inspectors are familiar with the reality of calling on their insurance coverage (9% citing a court award or claim on them). There is also the potential for the severity of any claim, coupled with defence costs, to be substantial.

Considering the foregoing, having reviewed the results, and in the absence of any overwhelming challenge to the current requirement, Consumer Protection BC will not be adjusting the requirement for $1 million in both per claim and aggregate General Liability and Errors and Omissions coverage.

For questions about home inspector licensing requirements, please contact our licensing department toll free at 1-888-777-4393 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..

Consumer Protection BC is a not-for-profit corporation that was created to strengthen consumer protection in BC and enforce consumer protection laws. We balance the interests of all parties to promote a marketplace that is fair for both BC consumers and BC businesses. We license and inspect specific industries, respond to inquiries through our Inquiry Centre, investigate alleged violations of consumer protection laws, and educate consumers and businesses about their rights and responsibilities under the law.  For more information about our organization, please visit our corporate website at www.consumerprotectionbc.ca.

Follow Consumer Protection BC on Twitter @ConsumerProBC, like us on Facebook and read our blog for valuable consumer tips and resources.