June 19, 2025 
3 min read 
Share Home Inspectors typically get sued once every five years and can expect to get sued twice on average in their careers. It is a litigious field. I have been a Licensed New Jersey Home Inspector for 19 years. I know this is true as I have been sued! I haven’t gotten number two yet. But the conventional Statute of Limitations is four years, unless the inspector can lower it by a Pre-Inspection Agreement clause signed by their client.
Lawsuits against Home Inspectors are typically based upon Negligence and/or Breach of Contract. That is why Home Inspectors need to carry Errors and Omissions (E&O) insurance.
In 2019, Shaw v. Shand, the Appellate Division held that home inspectors are not “learned professionals” exempt from liability under the New Jersey Consumer Fraud Act (CFA). Instead, Home Inspectors are deemed as “semi-professionals.”
NJ Home Inspectors are governed by the New Jersey Administrative Code: NEW JERSEY ADMINISTRATIVE CODE TITLE 13 LAW AND PUBLIC SAFETY CHAPTER 40 SUBCHAPTER 15;
which includes Section 13:40-15.2 – Definitions:
“Home inspection report” means a written report prepared for a fee or any other consideration by a licensee, which:
States what material defects are found in systems or components; and
“Material defect” means a condition, or functional aspect, of a structural component or system that is readily ascertainable during a home inspection that substantially affects the value, habitability or safety of the dwelling, but does not include decorative, stylistic, cosmetic, or aesthetic aspects of the system, structure or component.
The arguable terms are “readily ascertainable” and “substantially.”
Can you name a material defect that is readily ascertainable that does not affect the safety or habitability of a home but does affect the value of it? There is only one that I can think of (read on for answer)*.
Home Inspectors have different educational and experience requirements which can vary by state. For example, in New Jersey a licensed Home Inspector must have a certain amount of approved classroom and field hours and pass a State-approved exam. They also are required to take Continuing Education Units to renew their license and are subject to State Board actions, etc.
In Pennsylvania that is not the case. Pennsylvania does not issue licenses for Home Inspectors, etc. It does however require Home Inspectors to be a member of a Home Inspection society. Pennsylvania is considered a “regulated” state. Currently, 12 states are completely unregulated.
Home Inspectors often do commercial and industrial building inspections as well as residential inspections.
In licensed states the majority of complaints go to arbitration as most E&O insurers require that stipulation in the Home Inspector’s Pre-Inspection contracts.
Many of the same skills and education are necessary for home/building inspections as are required in forensics. The typical differences are that home/building inspections are more obtuse, holistic and proactive (anticipating or identifying material defects) versus typically confronting one aspect/incident that has already occurred in forensics.
Whether you’re filing a complaint about a home or building inspection or defending against one, Consulting Engineers and Scientists, Inc. has the expertise to assist you—providing experienced expert witnesses, consulting engineers, and scientists.
*What is a material defect that is readily ascertainable and does not affect the safety or habitability of a home but does affect the value? Answer: Asbestos shingles on a roof. They are not a safety or habitability issue, but a value issue, as the cost to remove them is significant.
