Discovering after closing that a home inspector missed a significant issue is one of the most frustrating experiences in home buying. Understanding what constitutes a legitimate miss versus a limitation of what an inspection can realistically cover — and what your options are — helps you respond appropriately.
“The first question in any ‘the inspector missed it’ situation is: was this something a competent inspector should have seen under the conditions of the inspection? Because there are things an inspector genuinely cannot see — problems behind finished walls, buried systems, intermittent issues that weren’t present during the inspection. And then there are things they should have seen and didn’t. Those are different situations with different responses.”
— Colette Arseneau, certified home inspector and OAHI member with 21 years of experience in residential property inspection in the local area
Table of Contents
Step 1: Determine What Type of Miss This Is
Before pursuing any action, honestly assess what happened:
Was this something the inspector should have seen?
– A visually apparent crack in the foundation that was accessible and visible
– An electrical panel with obvious defects
– Active water staining on a ceiling
– A furnace that was clearly not operating when tested
Was this a reasonable limitation of the inspection?
– A roof defect hidden under undisturbed shingles
– A failed sewer line (requires a specialist sewer scope)
– Asbestos in intact floor tiles (environmental testing required)
– A heating system that worked fine during the inspection but failed shortly after
Was this disclosed by the inspector?
– The report notes “further evaluation by a specialist recommended”
– The inspector stated the area was inaccessible
– A limitation in the report scope covers the condition
If the condition falls into the second or third category, you may have limited recourse against the inspector — the condition was genuinely beyond the scope or the limitations were disclosed.
Step 2: Review the Inspection Report and Agreement
Before contacting the inspector, review:
- The inspection report for any mention of the affected area or component
- The inspection agreement you signed — what scope was agreed, what limitations were stated
- Whether the report recommended further evaluation by a specialist
Home inspection agreements in many regions typically include liability limitations — often capping the inspector’s liability at the fee paid. Read the limitation clauses carefully.
Step 3: Document the Problem
Photograph and document the condition thoroughly before any repair is made. Repair costs supported by contractor quotes or invoices are the basis for any financial claim.
Step 4: Contact the Inspector in Writing
Notify the inspector of the problem, referencing specific conditions in the report and describing what was found. Ask for their response to why the condition was not identified or noted in the report.
A professional inspector will engage seriously with this question. They may acknowledge an error; they may explain why the condition was beyond what the inspection could identify.
Step 5: File a Complaint with the Professional Association
If the inspector is a member of OAHI, CAHPI, or InterNACHI, these associations have complaint and disciplinary processes. Filing a complaint creates a record and may result in:
- A review of whether the inspector violated professional standards
- Required additional training or remedial action
- Revocation of membership in serious cases
This is separate from any financial claim.
Step 6: Pursue Through E&O Insurance or Legal Action
If the inspector carried E&O insurance and you believe they were negligent in missing a visible, accessible condition that a competent inspector should have identified:
File an E&O insurance claim: Contact the inspector’s insurer directly. You’ll need documentation of the missed condition, the inspection report, photos, and repair cost estimates.
Small claims court: For disputes under $35,000 in many regions, small claims court is accessible. The standard is whether the inspector was negligent — meaning they failed to meet the standard of care expected of a competent home inspector under the circumstances of the inspection.
Important: Home inspection agreements frequently cap liability at the inspection fee. Before pursuing legal action, review the agreement’s limitation clauses and assess whether the claim value exceeds the practical cost of litigation.
Managing Expectations
Home inspection liability is genuinely limited in most cases. Inspectors are not guarantors of a home’s condition — they are professionals who apply reasonable care to observe and report accessible, visible conditions at a point in time. The most useful thing you can do is use an experienced, credentialed inspector with E&O coverage before purchasing — not after discovering a problem.
Related Questions
- Questions to Ask a Home Inspector Before You Hire One
- Red Flags When Hiring a Home Inspector
- Questions to Ask After a Home Inspection — Understanding the Report
Have a question we didn’t cover? Submit it below.