Steps to Setting Up a Home Inspection Business
If you want to run your own home inspection business, consider following these 10 steps
1. Develop a Home Inspection Business Plan and Cover Your Start-up Costs
Compared to other professions, the start-up costs to become a home inspector are relatively low. You need to pay for training, state testing and application fees, and basic equipment such as a ladder, electrical tester, screwdriver, etc.
2. Get Trained to be a Home Inspector
Getting the best training to do quality home inspections and passing either the state licensing or national test is very important. We have the tools you need to help you pass these exams. We have been training home inspectors for over 26 years and know what it takes to do a good job and pass these exams.
Compared to other professions, the start-up costs to become a home inspector are relatively low. You need to pay for training, state testing and application fees, and basic equipment such as a ladder, electrical tester, screwdriver, etc.
2. Get Trained to be a Home Inspector
Getting the best training to do quality home inspections and passing either the state licensing or national test is very important. We have the tools you need to help you pass these exams. We have been training home inspectors for over 26 years and know what it takes to do a good job and pass these exams.
3. Pass the State Home Inspection Test
Most states are using the National Home Inspection Exam (NHIE) as part of their state test. States also often require passage of a shorter test that covers the state's rules. The NHIE test is taken online at a testing facility. Check with your state to see which testing company they are using to administer the test. You can also check with NHIE. The test consists of 200 multiply choice questions (taken from a pool of thousands of questions) and you are allowed 4 hours to complete it. It is a difficult test so it is recommended to go through several practice tests before hand to prepare yourself. When you complete our training, you have access to 5 full length practice tests to help you prepare.
Most states are using the National Home Inspection Exam (NHIE) as part of their state test. States also often require passage of a shorter test that covers the state's rules. The NHIE test is taken online at a testing facility. Check with your state to see which testing company they are using to administer the test. You can also check with NHIE. The test consists of 200 multiply choice questions (taken from a pool of thousands of questions) and you are allowed 4 hours to complete it. It is a difficult test so it is recommended to go through several practice tests before hand to prepare yourself. When you complete our training, you have access to 5 full length practice tests to help you prepare.
4. Get Your Home Inspector License
Once you pass the state or national test, you need to formally apply and secure your license before you get started inspecting. We have experience with helping others obtain their license in states that require licensing. Let us help you jump through those hoops to get to that point.
5. Buy your Home Inspection Tools
We have found that many people already have the basic tools they need to perform an inspection: ladder, screwdrivers (both Philips and standard), electrical circuit tester (with GFCI test button), level (one that also allows you to check for plumb), binoculars, a very good flashlight, thermometer (one that reads between about 40 and 150 F, etc. There are others items you probably need to purchase: gas detector, moisture detector, etc. Watch out for training companies that offer you free home inspector "tools" such as a ruler, compass, or methods to read blueprints. Such "tools" are not even used in actual home inspections.
Ladders are typically some of the most costly tools. Be sure to purchase one that will safely allow you to climb most of the roofs in your area if you elect to attempt to walk all walkable roofs and have your doctor's clearance to do so. Do not use the ladder in a way that is not recommended on its label.
6. Select the Home Inspection Reporting System you Plan to Use
Conduct the inspection using a good quality form (the form will generally determine the quality of the inspection since few inspectors can be expected to remember to check up to 1,000 items). Most home inspectors use a combination check off/narrative type inspection form. This combines the speed of using a simple check off form with the flexibility of some narrative comments peculiar to the house.
7. Put Together Your Home Inspector Marketing Materials
This can include branding tools such as logos, apparel, etc.
8. Set Up Your Home Inspector Liability/E&O Insurance
Errors and Omissions Insurance (E&O) is pretty much what it sounds like. It helps protect you as a home inspector if you make an error or omit something in your inspection. This insurance is required by many states. Usually if your state requires it, there are several insurance companies to choose from. If your state does not require it, it is probably best to go with a country wide insurance company that specializes in E&O insurance for home inspectors. These companies usually will not sell you E&O insurance unless you are properly trained.
Some states require General Liability Insurance. This type of insurance is commonly available from your local insurance agent. General Liability Insurance typically covers 1) damage caused to the property or injury to persons as a result of the inspection (e.g., you break a light fixture on the way up into the attic or fall through the attic, you leave the hot water heater temperature up too high and an occupant is scalded, etc.), 2) negligent contractual performance liability (e.g., not inspecting according to national standards as required under the contract, not to be confused with ordinary professional negligence in inspecting), 3) office premises liability (e.g., a person hurt while visiting your office), 4) in some cases defamation (e.g., the seller sues you for "badmouthing" his or her house), and 5) employee theft.
9. Register Your Business
Once you pass the state or national test, you need to formally apply and secure your license before you get started inspecting. We have experience with helping others obtain their license in states that require licensing. Let us help you jump through those hoops to get to that point.
5. Buy your Home Inspection Tools
We have found that many people already have the basic tools they need to perform an inspection: ladder, screwdrivers (both Philips and standard), electrical circuit tester (with GFCI test button), level (one that also allows you to check for plumb), binoculars, a very good flashlight, thermometer (one that reads between about 40 and 150 F, etc. There are others items you probably need to purchase: gas detector, moisture detector, etc. Watch out for training companies that offer you free home inspector "tools" such as a ruler, compass, or methods to read blueprints. Such "tools" are not even used in actual home inspections.
Ladders are typically some of the most costly tools. Be sure to purchase one that will safely allow you to climb most of the roofs in your area if you elect to attempt to walk all walkable roofs and have your doctor's clearance to do so. Do not use the ladder in a way that is not recommended on its label.
6. Select the Home Inspection Reporting System you Plan to Use
Conduct the inspection using a good quality form (the form will generally determine the quality of the inspection since few inspectors can be expected to remember to check up to 1,000 items). Most home inspectors use a combination check off/narrative type inspection form. This combines the speed of using a simple check off form with the flexibility of some narrative comments peculiar to the house.
7. Put Together Your Home Inspector Marketing Materials
This can include branding tools such as logos, apparel, etc.
8. Set Up Your Home Inspector Liability/E&O Insurance
Errors and Omissions Insurance (E&O) is pretty much what it sounds like. It helps protect you as a home inspector if you make an error or omit something in your inspection. This insurance is required by many states. Usually if your state requires it, there are several insurance companies to choose from. If your state does not require it, it is probably best to go with a country wide insurance company that specializes in E&O insurance for home inspectors. These companies usually will not sell you E&O insurance unless you are properly trained.
Some states require General Liability Insurance. This type of insurance is commonly available from your local insurance agent. General Liability Insurance typically covers 1) damage caused to the property or injury to persons as a result of the inspection (e.g., you break a light fixture on the way up into the attic or fall through the attic, you leave the hot water heater temperature up too high and an occupant is scalded, etc.), 2) negligent contractual performance liability (e.g., not inspecting according to national standards as required under the contract, not to be confused with ordinary professional negligence in inspecting), 3) office premises liability (e.g., a person hurt while visiting your office), 4) in some cases defamation (e.g., the seller sues you for "badmouthing" his or her house), and 5) employee theft.
9. Register Your Business