Home Inspection Cosmetic Defects and Issues

Shortly after moving into their new home, some buyers had the carpets cleaned. They noticed a spot in the primary bedroom that looked different from the rest. Pulling the carpet up, they noticed a raised section of the floor which was causing depressions on either side of a bowed floor joist. 

The buyers told their inspector to contact their insurance company. They were holding the inspector responsible for leveling the floor.

An investigation revealed that, while unattractive, the bow in the floor was not structural. The room’s flooring and the basement’s subfloor were all functional. As the inspector’s insurer, we issued a denial of liability on the inspector’s behalf, stating he wasn’t responsible for home inspection cosmetic issues like this one. The claim closed at no cost to the inspector.

Understanding cosmetic defects in home inspections can help you avoid claims like these. In this article, we provide a cosmetic defect definition. We also explain why inspectors aren’t required to report on them, and advise you on how to manage your risk against aesthetic defect claims.

What are cosmetic defects and issues?

What is considered a cosmetic defect in a home inspection?

A cosmetic defect is a surface-level imperfection that affects how a property looks but doesn’t affect how the property functions. Chipped paint, scratched floors, worn hardware, and outdated fixtures are all examples of home inspection cosmetic issues.

“I tell my clients that cosmetic defects are like us: While we may not look pretty, we still work,” said Ruben Mariscal of SoCal Home Inspects in California.

“These defects are typically superficial and do not pose safety or operational concerns,” adds Dean Young of The Inspection Co in the Piedmont Triad.

Why don’t inspectors report home inspection cosmetic issues?

Most home inspectors shy away from reporting cosmetic imperfections for four reasons:

1. Many state regulations and association standards agree that cosmetic issues are beyond inspectors’ scopes.
2. Cosmetic house repairs and problems can be difficult to address because there’s no conclusive definition. They’re subjective. As David Kile of Texas Dependable Home Inspections explained: “When it’s cosmetic, it’s about what you accept and what you’re happy with aesthetically. I don’t know what that is.”
3. Focusing on aesthetic issues hurts inspector-client communication by confounding clients’ expectations. When inspectors draw attention to cosmetic defects, clients unrealistically assume that inspectors should note every imperfection every time.
4. Since superficial flaws are common in previously owned homes, it can be overwhelming or even confusing for clients to see such defects listed. As Jim Brown of Final Word Home Inspection in Georgia said: “When you sum up a report with a bunch of non-essential, stupid stuff, it’s going to cause the buyer to throw up all kinds of red flags.”

When do inspectors report cosmetic defects?

Some inspectors do choose to report aesthetic issues.

For example, sometimes cosmetic items in home inspections do indicate a bigger issue. A ceiling stain, for example, could indicate a leaky roof or faulty plumbing. When a physical imperfection is connected to the usability or effectiveness of a system or component, it is not a cosmetic issue; it’s a reportable deficiency.

“A home inspector does not have a duty to report on cosmetic defects. But at our company we have a duty to our client to report on cosmetic issues that may be of concern to a client,” said Kurt Stein of HouseScan Inspections in Florida. “I think each company should do what they want to do and not adhere so strictly to the SOP or operate strictly to avoid risk.”

Jordan Ballard of Tahoma Inspection Services in Washington also cites home inspection cosmetic issues. But he gives some caveats.

“I do point out many cosmetic items on the report, from nail pops to broken interior doors. But I explain that not every one will be listed out,” Ballard said. “If I see one nail pop and report on it, there may be five others present, but only one specific example provided.”

Young finds a middle ground by offering clients a separate cosmetic walkthrough outside of his standard inspection. By making the aesthetic walkthrough a separate service, Young underscores his standard inspection’s scope while giving clients an opportunity to address cosmetic concerns.

How can inspectors limit their liability against cosmetic-related claims?

You don’t want to (and shouldn’t) list each scratch in the kitchen sink or every smudge on the windows. Yet you don’t want clients to complain that you didn’t call out “significant” cosmetic defects, either. So how can you limit your liability against cosmetic-related claims? 

Here are four tips.

1. Remember your place.

Sloppy caulking. Paint on windows. Chipped cabinets. Nicked drywall. When you consider you’re inspecting properties for sales, it’s surprising just how much cosmetic wear and damage is on display. But as much as that discolored bathtub may make your eyes twitch, it’s not your job to call it out.

Remember your scope is to identify major systems’ condition on inspection day. You’re not there to create a punch list for the decorator. So focus on the components specified in your standards of practice and leave the cosmetic house repairs out.

2. Call out your cosmetic defects exclusion in your agreement and report.

To ensure your clients are on the same page, use your report and the exclusions section of your pre-inspection agreement.

“In your agreement, clearly state that the inspection focuses on structural, mechanical, and safety-related issues, not minor cosmetic concerns,” Young said.

To drive the point home, Young uses this disclaimer in each of his reports:

“Cosmetic defects, such as minor paint flaws, surface scratches, or general wear and tear, are not within the scope of this inspection unless they indicate a functional or structural issue.”

3. Put your clients to work.

Some clients show up wanting to participate in the home inspection. While it’s nice for them to be informed and invested, it isn’t always so nice to be closely shadowed. 

One way to get yourself some desired space and address their potential cosmetic defect concerns is by handing them a roll of blue tape and asking them to mark the aesthetic issues they see, suggested David Andersen of Andersen Inspections in Tennessee on an InterNACHI forum post. By putting the ball in your clients’ court, you remind them that it’s their job to find cosmetic deficiencies–not yours.

If you choose to invite clients to find cosmetic defects, they may ask if what they find is serious. Take the opportunity to differentiate the structural and functional issues you’re identifying and the aesthetic issues they mark. And if they’ve found something that both looks and functions poorly, explain why it’s more than a cosmetic issue.

4. If your client or an agent asks about cosmetic defects, don’t weigh in.

Even after you say you don’t inspect for aesthetic issues, a client or agent may still ask about them. If they do, remind them you’re not there to comment on cosmetic issues. Additionally, invite them to bring their questions to someone else, like a contractor or renovator. 

While it may be tempting to say how severe a cosmetic defect looks or how much it may cost to repair or replace, that isn’t your place. Weighing in, even verbally, can send your clients and agents mixed messages. So don’t.

“We’ve had certain instances where clients have been upset with craftsmanship type issues. But it’s usually handled with a simple conversation that we don’t comment on those and that is outside the scope of our inspection,” Stein said.

Don’t put lipstick on a pig. Get insurance that doesn’t need the makeup.

Sublimits by default. Brokers that don’t pick up. No help with complaints until they’re claims. There’s a lot of bad insurance out there. But you don’t need to settle for it.

Here at InspectorPro, we give clients competitive coverage for a competitive price. We don’t sublimit. We answer the phone. And our pre-claims assistance sets the standard for the home inspection industry. 

If you aren’t insured with us yet, stop settling for less and switch. Click here to get a quote.

Related Posts

• Home Inspection Repairs: What You Should (and Shouldn’t) Do
• Home Inspectors:| How to Mitigate Risk through Communication
• Out of the Frying Pan: | Home Inspection Defects Go From Bad to Worse
• Your Pre-Inspection Agreement: | Exclusions