Recovery of Damages from Home Inspector Limited to the Cost of the Inspection

Most home inspection contracts state that the inspector’s liability is limited to the cost of the inspection.  But if you have an issue with your inspector, will this hold up in court?  In Zerjal v. Daech & Brauer Construction, Inc., 210 Ill.App.LEXIS 1269 (5th Dist.2010) , the Court says yes, it will.
 
In 2006, the plaintiff hired the defendant to inspect a home he had under contract.  A few weeks later, he closed on the home.  After closing, the plaintiff found many structural defects that he was not informed about during the inspection or in the inspection report.  According to the plaintiff, the foundation could not support the house, the walls could not support the loads they were carrying, there was water leakage into the home, the electrical system was not safe, the HVAC was damaging the home’s wood, and the home was generally structurally unstable. 

The trial court found that under the terms of the inspection agreement, the inspector could not be liable for latent or concealed defects, and that the inspector had not guaranteed the structure of the home.  Furthermore, the court stated that the contract limited the inspector’s liability to the cost of the inspection, which was $175.  The inspection contract even stated that any suits must be filed within two years.  The plaintiffs filed late, and the court agreed with the inspector that they should have filed within the two-year term as defined in the Contract.  The appellate court later affirmed these points. 

So moral of the story?  Read your inspection contract, and understand your rights and responsibilties.  If you’re not satisfied with your home after you had it inspected, don’t expect your home inspector to be liable to you!