North Carolina Home Inspector Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a North Carolina Home Inspector Bond

At a Glance:

• Lowest Cost: $100 per year or $10 per month
• Bond Amount: $5,000
• Who Needs it: Home inspectors operating in North Carolina
• Purpose: To ensure the public will receive compensation for any damages if the home inspector violates licensing law
• Who Regulates Home Inspectors in North Carolina: The North Carolina Home Inspector Licensure Board

Background

North Carolina Statute 143-151.50 requires all home inspectors operating in the state to obtain a license with the Home Inspector Licensure Board. The North Carolina legislature enacted the licensing requirement to ensure that home inspectors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, home inspectors must either purchase and maintain a $5,000 surety bond, have $5,000 in assets, or purchase errors and omissions (E&O) insurance with a limit of $250,000 to be eligible for licensure.

What is the Purpose of the North Carolina Home Inspector Bond?

North Carolina gives home inspectors the option of purchasing a surety bond, claiming $5,000 in assets, or obtaining E&O insurance as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the inspector fails to comply with the regulations set forth in the North Carolina Home Inspector Licensure Act. Specifically, the bond protects the public in the event the inspector engages in any acts of fraud or breaches any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the home inspector breaks licensing laws.

How Can an Insurance Agent Obtain a North Carolina Home Inspector Surety Bond?

BondExchange makes obtaining a North Carolina Home Inspector bond easy. Simply login to your account and use our keyword search to find the “home” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the North Carolina Bond?

No, a credit check is not required for the North Carolina Home Inspector bond. Because the bond is considered relatively low risk, the same low rate is offered to all home inspectors operating in the state, regardless of their credit history.

How Much Does the North Carolina Home Inspector Bond Cost?

The North Carolina Home Inspector bond costs just $100 per year or $10 per month.

Who is Required to Purchase the Bond?

North Carolina requires home inspectors to either purchase a surety bond, claim $5,000 in assets, or purchase E&O insurance, with a limit of $250,000, as a prerequisite to obtaining a business license. To paraphrase North Carolina Statute 143-151.45, a home inspector is a person that provides written evaluations of all components of a residential home/building.

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do North Carolina Home Inspectors Apply for a License?

Home Inspectors in North Carolina must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.

License Period – All North Carolina Home Inspector Licenses expire on September 30 of each year and must be renewed before the expiration date

Step 1 – Complete the Pre-Licensing Program

Before applying for a license, home inspectors must complete the pre-licensing program, which consists of a 120 hour classroom course and an 80 hour field training course. A list of eligible course providers can be found here. Additionally, applicants must pass the required exam.

Step 2 – Provide Financial Security

Home inspectors are required to satisfy one of the following financial security requirements:

• • Purchase a $5,000 surety bond
  • Claim $5,000 in assets
  • Purchase $250,000 worth of E&O insurance

Step 3 – Purchase Insurance

All home inspectors must purchase general liability insurance with a minimum limit of $250,000

Step 4 – Complete the Application

All North Carolina Home Inspector License applications can be completed online here. Home inspectors must complete the application in its entirety, and submit pay all required fees.

How do North Carolina Home Inspectors Renew Their Licenses?

Home inspectors can submit their completed renewal application, including a $160 fee, online here. All applicants must complete 12 hours of continuing education each renewal period. All North Carolina Home Inspector Licenses expire on September 30 of each year and must be renewed before the expiration date.

What are the Insurance Requirements for Home Inspectors in North Carolina?

North Carolina requires home inspectors to purchase $250,000 worth of liability insurance. Additionally, home inspectors are required to satisfy one of the following financial security requirements:

• Purchase a $5,000 surety bond
• Claim $5,000 in assets
• Purchase $250,000 worth of E&O insurance

How Do North Carolina Home Inspectors File Their Bonds?

Home inspectors should mail their completed bond forms, including the power of attorney, to the following address:

Office of State Fire Marshal
1201 Mail Service Center
Raleigh NC 27699-1201

The surety bond requires signatures from both the surety company that issues the bond and from the home inspector. The surety company should include the following information on the bond form:

• Legal name of the entity/individual(s) buying the bond
• Surety company’s name and state of incorporation
• Bond amount
• Applicant’s license classification (home inspector)
• Date the bond goes into effect
• Date the bond is signed

What Can North Carolina Home Inspectors do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, home inspectors in North Carolina must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

• Do not engage in any acts of fraud
• Do not breach any contracts made with consumers

What Other Insurance Products Can Agents Offer Home Inspectors in North Carolina?

North Carolina requires home inspectors to purchase liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for North Carolina Home Inspector Customers?

North Carolina conveniently provides a public database of active home inspectors in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.