Even the best home inspectors can make mistakes, and the things they miss can wind up causing you major headaches. Surprisingly, not all states require home inspectors to carry insurance, and even those with insurance requirements in place may not do enough to protect homeowners.
Typically, a home inspector's liability tops out at the cost of the inspection. That means that if your inspector misses a major issue, you could be out thousands. To make sure you'll be protected by a home inspection oversight, choose an inspector who carries "Errors and Omissions" coverage. These policies go beyond the basic liability insurance, and offer some level of protection if the inspector overlooks a damaged roof, or a furnace on its last legs [source: Rothfeder].