- 10 February, 2005 -

Is your home inspector licensed by the state of Alabama ? In January 2004 the Alabama Building Commission put strict new legislature in place to mandate all home inspectors be licensed and carry appropriate insurance. (This is an amendment to the 1997 ruling that required licensing but not insurance.) Yet since the new legislature took effect on January 1, 2005 , only 195 out of 366 (2004 data) inspectors in the state were legally registered and licensed, according to data on the Alabama Building Commission's website. This reveals that nearly 50% of operating home inspectors in Alabama have not complied with the new law a situation which can result in significant financial hardship for an unsuspecting homeowner. Previously, in order to obtain a license in the state of Alabama , a home inspector had to show proof of membership, certification or licensure from a state approved organization; and pass both the comprehensive National Home Inspection Exam and a test of the industry's Standards and Practice. This year, in an effort to weed out uninsured inspectors and help protect consumers, the state ruled that all inspectors must carry a minimum of $250,000 in Errors and Omissions (E&O) insurance (similar to malpractice insurance), and $100,000 in General Liability insurance. Yet enforcement of these new requirements is difficult at best, and countless inspectors continue to operate without a state license or insurance. The Alabama Home Inspectors Registration Act states that it is a Class A misdemeanor for a home inspector to operate without a license, and that without a license, the contract between homeowner and inspector is not enforceable or valid. Yet while requiring inspectors to carry E&O Insurance is a safeguard for the homebuyer as well as the real estate professional who may have unwittingly recommended an uninsured inspector, the costs to an inspector may also prove a deterrent in seeking a license. "With the proliferation of lawsuits against all professionals, the thinking among some home inspectors is that they are less of a target if they don't have insurance," suggests Greg Smith, owner of HouseMaster Home Inspections in Trussville , AL . "These small operations are more likely to close up shop to avoid a lawsuit, leaving the consumer with no financial recourse and possibly the real estate agent ‘holding the bag,' so to speak." Buying a home is often the largest investment a person will make. And making sure the person hired to inspect it is an important step. A professional home inspection will help reduce the likelihood that a home buyer will face expensive repairs that they may not be familiar with, and while licensing is only one criterion in evaluating a home inspector, it is a step in the right direction. For a complete list of licensed home inspectors in the state of Alabama go to http://www.bc.state.al.us/HI_search.asp, or call the Alabama Building Commission, 334.242.4810. Local contact: Tandi Smith, HouseMaster Home Inspections, 205.661.1223, tsmith@housemaster.com .

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