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?

Home inspection businesses in the U.S. typically pay between $600 and $720 per year for full business insurance, or about $50 to $60 per month. But this is just an estimate; your actual business insurance cost can be higher or lower depending on your specific situation.

Every home inspection business faces different risks, so insurance prices vary. For example, a solo inspector working part-time will usually pay less than a larger company with multiple inspectors and vehicles. Factors like your location, years of experience, claim history, and the types of inspections you offer (such as mold or sewer inspections) can also affect your premium.

In higher-risk areas, like big cities with more lawsuits, you may pay more for liability insurance. If you use expensive equipment or work in older homes with safety risks, your property or liability premiums may also go up.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your home inspection business.

Average Home Inspection Insurance Costs For Coverage Types

When it comes to protecting your home inspection business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most home insurance businesses need.

• 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 covers third-party bodily injury, property damage, and advertising injuries. For example, if you’re inspecting a home and accidentally knock over an expensive vase, this policy would help pay for the replacement cost and any legal fees if the homeowner decides to sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

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

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 bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office space, tools, and inspection equipment. For example, if a fire breaks out in your office and destroys your inspection tools and computer, the BOP would help pay for repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

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

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’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a home inspector falls off a ladder during an attic inspection and injures their back, workers’ comp would help pay for their medical treatment and a portion of their lost income while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

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

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 covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if you’re driving to a home inspection and get into an accident, this policy would help cover the repair costs for your vehicle and any damage or injuries caused to others.

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

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 business if a customer claims you made a mistake, gave bad advice, or didn’t do the job properly, and it caused them a financial loss.

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.

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 covers the repair or replacement of tools and equipment used in your business if they are lost, stolen, or damaged.

For example, if someone breaks into your work van and steals your moisture meter, infrared camera, and ladder, this insurance would help pay to replace the stolen items. Without it, you’d have to cover the costs yourself to continue doing inspections.

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?

Home inspection insurance premiums are carefully calculated by underwriters based on your business’s risk profile. Factors like the types of inspections you offer, your location, years of experience, number of employees, and past claims history all play a role in determining what you’ll pay for coverage.

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

Running a home inspection business is expensive, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your home inspection insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward businesses that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents can be costly for both you and your insurance provider. Taking steps to reduce the risk of injuries or property damage can help lower your insurance premiums over time. For example, using sturdy ladders, wearing proper safety gear, keeping inspection tools well-maintained, and clearly marking hazardous areas during inspections can reduce your general liability risk and show insurers that you run a safe, responsible business.

4. Create A Safe Working Environment

A strong safety program can help lower your workers’ compensation costs. For a home inspection business, this means training employees on ladder safety, proper lifting techniques, electrical hazard awareness, and how to safely navigate attics, roofs, and crawl spaces. Fewer on-the-job injuries lead to fewer claims, which can result in lower insurance premiums over time.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your home inspection business a safer and more resilient business.