How Much Does Insurance Cost For Home Inspectors? 2025 Rates

U.S. home inspection businesses can expect to pay between $600 and $720 annually for comprehensive business insurance, averaging $50 to $60 per month. The primary cost drivers are location, coverage limits, claims history, experience level, business size, and services offered.

How Much Does Home Inspection Insurance Cost?

In the U.S., home inspection businesses usually spend around $600 to $720 a year for full business insurance, which works out to about $50 to $60 per month. This is only a general estimate, your actual cost could be more or less depending on your business’s size, location, and specific needs. 

If you run a home inspection business, getting the right insurance is key to protecting yourself, your clients, and your business. The home inspection business insurance costs mentioned above come from several important factors, such as where you do business, the kinds of inspections you perform, and how much experience you have. Building a realistic insurance budget is a smart move when planning and growing your home inspection business. 

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Experience and certification (affect E&O insurance)
• Location and state regulations (affects general liability and workers compensation insurance)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Knowing these factors can help you figure out the insurance your home inspection business really needs and plan for the actual costs of keeping it protected. 

Average Home Inspection Insurance Costs For Coverage Types

Home inspection businesses need different types of insurance to stay protected, and each type comes with its own cost. Some policies cover accidents and injuries, while others protect you against mistakes or damage during an inspection. Let’s look at the average costs for the main types of home inspection insurance , so you can understand what to expect and decide which coverage is right for your business. 

• General liability insurance: $50 per month
• Business owner’s policy: $45 per month
• Workers’ compensation insurance: $260 per month
• Commercial auto insurance: $176 per month
• Professional liability insurance: $71 per month
• Contractor’s tools and equipment: $14 per month
• Commercial umbrella insurance: $85 per month

General Liability Insurance

The average cost of general liability insurance for a home inspection business is about $50 per month.

General liability insurance is one of the most important types of insurance for a home inspection business. It protects your business is someone gets hurt or if property is damaged while you’re working. 

Having general liability insurance gives you peace of mind because accidents can happen. It helps protect your business from expensive claims and lawsuits, making it essential for running a safe and secure home inspection business. 

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and any subcontractors or additional insured endorsements

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for home inspection businesses as reported by both small and large insurance agencies. Figures reflect typical liability coverage needs for risks such as client injury during property walkthroughs, errors in inspection reporting, and potential property damage claims. Actual premiums will vary depending on factors like business size, claims history, employee count, and regional risk exposure.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $45 per month for home inspection business.

A BOP is a type of insurance that combines several coverages into one plan, making it easier and often cheaper for small businesses. For a home inspection business, it usually includes general liability and commercial property insurance. 

Some BOP’s also include business interruption coverage, which helps cover lost income if your business can’t operate due to a covered event, like a fire or natural disaster. 

Cost factors include the business size, the amount of foot traffic, and the value of your business property.

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Business Owner’s Policy (BOP) premiums for home inspection businesses, incorporating state-specific liability environments, property coverage needs, and payroll ranges typical of both small independent inspectors and larger multi-inspector firms. Actual premiums will vary depending on the size of the business, claims history, number of employees, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a home inspection business is around $260 per month.

Workers compensation insurance is designed to protect both your employees and your business if someone gets injured or becomes ill on the job. In a home inspection business, workers face risks like ladder falls, trips, or injuries while carrying tools and equipment. 

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Each state sets rules for workers’ compensation limits, but generally, the insurance covers medical expenses and a portion of the employee’s lost wages, often without a fixed maximum. 

Even if your state doesn’t require it, having workers compensation is a smart way to keep your staff safe and your business protected. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Workers’ Compensation premiums for home inspection businesses, incorporating state-specific base rates, employee classifications, and payroll ranges typical of both solo inspectors and larger multi-inspector firms. Actual premiums will vary depending on the size of the business, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for home inspection business is about $176 per month.

Commercial auto insurance protects vehicles that you use for your home inspection business. If you drive a car, or a can to visit clients or transport equipment, this insurance helps cover costs if there’s an accident, injury, or damage. 

Factors influencing the cost include the number and type of vehicles, coverage needs, the value of the vehicle, and your insurance claims history.

Since personal auto insurance usually doesn’t cover business use, commercial auto insurance is important to keep your business and vehicles protected. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Commercial Auto Insurance premiums for home inspection businesses, incorporating state-specific base rates, vehicle usage patterns, and payroll ranges typical of both solo inspectors and larger multi-inspector firms. Actual premiums will vary depending on the number of vehicles owned, driving records of employees, business mileage, claims history, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for a home inspection business is about $71 per month.

Professional liability insurance (also called Errors and Omissions Insurance) protects your home inspection business if a client claims you made a mistake or were negligent during an inspection. 

For example, if you overlook a major roof issue during a home inspection and the buyer later faces costly repairs, they might sue you for negligence. This insurance would help cover legal fees and any compensation you’re required to pay.

The cost of professional liability insurance depends on things like how much coverage you want, how big your business is, and the kind of junk removal services you provide.

Unlike general liability insurance, which covers accidents or injuries, professional liability focuses on mistakes in the services your provide. Having this coverage gives you peace of mind and protects your business from costly claims related to errors. 

Policy limits: $1 million per occurrence; $1 million aggregate

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Professional Liability Insurance premiums for home inspection businesses, incorporating state-specific liability environments, coverage limits, and payroll ranges typical of both solo inspectors and larger multi-inspector firms. Actual premiums will vary depending on the size of the business, claims history, number of employees, and insurer underwriting practices

Contractor’s Tools And Equipment

The average cost of contractor’s tools and equipment insurance for a home inspection business is about $14 per month.

Contractors tools and equipment insurance protects the tools and equipment you use for your home inspection business. This can include things like ladders, moisture meters, cameras, and other inspection tools. 

It’s especially useful for home inspectors because replacing specialized tools out of pocket can be expensive. 

The cost of contractor’s tools and equipment coverage depends on the value of your tools and equipment and the type of work you do.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates above are modeled from typical annual premiums for Contractor’s Tools and Equipment coverage for home inspection businesses, using a blend of average rates from small and large insurance agencies; actual premiums will vary by insurer, coverage limits, deductible, business size, claims history, equipment value, and local risk factors.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a home inspection business is about $85 per month.

Commercial umbrella insurance gives your business extra protection by adding more coverage on top of your existing liability policies (like general liability or commercial auto). It kicks in when the costs of a claim go over the limits of your other insurance.

For example, if you’re found liable for $1.5 million in a lawsuit after a serious on-site injury, but your general liability policy only covers $1 million, umbrella insurance would help cover the remaining $500,000.

The cost of commercial umbrella insurance mainly depends on how much extra coverage you choose to buy.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual premiums for Commercial Umbrella Insurance for home inspection businesses, using a blend of typical rates quoted by small and large insurance agencies; actual premiums will vary by insurer, coverage limits, number of employees, claims history, contract exposures, and regional risk factors.

Home Inspection Business Insurance Costs By Provider

Home inspection business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for home inspection businesses from both small and large agencies, and reflect typical coverages such as general liability, professional liability (E&O), a business owner’s policy (BOP), and workers’ compensation; actual premiums will vary by location, experience, claims history, number of employees, and chosen coverage limits

What Factors Impact Your Home Inspection Insurance Costs?

The cost of home inspection insurance can vary a lot from one business to another. Insurance companies consider several things when setting your rates, and understanding these factors can help you plan and budget for the right coverage. Here is a list of the key elements that can affect how much you pay for your home inspection costs. 

Type Of Home Inspection Services

Not all home inspectors face the same risks. Inspectors who offer basic visual inspections usually pay less than those providing specialized services like mold testing, sewer scopes, or radon inspections. The more complex or high-risk your services, the higher your insurance cost may be.

Extra Services And Add-Ons

If you offer add-on services, like drone inspections, infrared scans, or pool inspections, your insurance premium could increase. These services may require additional coverage due to higher risks of errors or equipment damage.

Location

Where you operate can affect your insurance costs. Inspectors working in high-risk areas, such as large cities with more lawsuits, or regions prone to natural disasters, may pay more. Working in a lower-risk suburban or rural area with fewer claims could mean lower premiums.

Size Of Your Business

A solo inspector with no employees usually pays less than a multi-inspector firm with several vehicles and staff. The more people and equipment involved, the more your insurance will cost, especially for workers’ comp and commercial auto policies.

Value Of Your Tools And Equipment

If you use high-value tools like thermal imaging cameras, sewer scopes, or drones, you may need contractors tools and equipment insurance. The more expensive your gear, the higher your commercial property or equipment coverage costs will be.

Claims History

If you’ve had multiple insurance claims in the past, such as missed defects or property damage, your premiums may go up. A clean claims history, on the other hand, often helps you qualify for lower rates or discounts.

Coverage Limits And Deductibles

Choosing higher coverage limits gives you better protection but will raise your premium. Picking a higher deductible (the amount you pay out-of-pocket when filing a claim) can reduce monthly costs but means you’ll pay more if something goes wrong.

Insurance Provider

Rates can vary between insurance companies. Some specialize in home inspection businesses and may offer better pricing, broader coverage, or more flexible terms. It’s a good idea to compare quotes to find the best fit for your needs.

How To Lower Your Home Inspection Insurance Costs

Insurance is an important part of running a home inspection business, but it can be expensive. The good news is there are ways to lower your insurance costs without giving up important protection. 

1. Bundle Policies

Buying multiple types of insurance, like general liability and professional liability from the same company can often get you a discount. 

2. Increase Your Deductible

A higher deductible means you pay more out of pocket if something happens, but your monthly or annual premiums will be lower. 

3. Shop Around

Compare quotes from different insurance companies. Rates can vary, and shopping around helps you find the best price for the coverage you need. 

4. Pay Annually Instead Of Monthly

Many insurance companies give a discount if you pay for the full year upfront instead of in monthly payments. 

5. Review Your Coverage Regularly

Make sure you’re not paying for coverage you don’t need. Adjusting your policy as your business changes can save money.