What is property damage liability?4 Examples of Home Inspection Property Damage Claims
Last Updated September 5, 2025
No home inspector wants to imagine a client or agent injury arising from their inspection. But as terrifying as these potential accidents may be, there’s another type of general liability (GL) claim that happens way more often: third-party property damage.
Property damage claims are trickier to mitigate than third-party injuries. While you can decrease the chance of injuries by asking buyers, sellers, and agents not to attend your inspection, avoiding others’ property is nearly impossible.
Luckily, the more informed you are, the more proactive measures you can take to prevent accidents like these. Let’s explore popular questions about general liability property damage claims, plus real examples you can learn from.
Property Damage Liability: A Definition
Commercial general liability insurance claims involve bodily injury or property damage to third parties. By third parties, we mean people who aren’t you or your employees. This may include the buyer, the seller, their agents, and any other guests they invite to the inspection, like their children or parents. Under general liability, property damage claims happen when a third party accuses you or your business of losing or damaging their property during the inspection.
Just as property comes in many shapes and sizes, property damage cases also run the gamut.
Claims could involve something small, like accidentally knocking a lamp off the table. They could be something bigger, like accidentally dropping your binoculars onto the agent’s windshield while inspecting the roof from the eaves. Or they could be something way bigger, like the entire plumbing line freezing after neglecting to turn the heat back on.
At InspectorPro, we see five common types of property damage claims:
Cars, furniture, family heirlooms, technology, and even the physical house: these all count as third-party property. Given this wide spectrum of potential costs, many inspectors invest in general liability coverage for peace of mind against property damage claims.
Below, we’ll show you examples of property damage claims and how general liability insurance can help. But first: What’s the difference between general liability and inland marine insurance when it comes to property damage?
Equipment Coverage vs. General Liability Coverage
Equipment coverage and general liability insurance for property damage claims both involve damaged property. The difference is in the ownership. You can remember it like this:
- If you or your business owns the property, it goes to your equipment coverage.
- If it doesn’t belong to you or someone on your payroll, it goes to your general liability coverage.
4 Examples of Property Damage Claims
Now let’s look at some real claim examples from our archives. We’ll share what the resolution process looks like for these GL property damage claims, plus practical tips for how to handle property damage claims like these.
1. Scratched by Circumstance
While inspecting a rental property for a potential buyer, an inspector noticed the tenant’s car was still parked in the garage. Right next to the tenant’s car was a dead front panel.
As the inspector opened the door from the house to the garage, he heard a loud “BOOM.” The panel had fallen off the wall, scratching the tenant’s car in the process. The tenant was home, so the inspector immediately informed him and even offered to pay for the damage.
The inspector noticed there were no screws or bolts to properly secure the panel to the wall. He’d felt a shift in air pressure when he entered the garage. Because the service panel was barely secured to begin with, he believed the air pressure must have dislodged it.
The tenant had a different story. He accused the inspector of manually ripping the panel off the garage wall. He also claimed the inspector was in no hurry to mention the damage, only bringing it up as he was preparing to leave the house. Ultimately, the tenant demanded compensation for his car’s repairs, which exceeded $4,000.
After reviewing materials and consulting both parties, our claims team determined the inspector wasn’t liable. If the inspector had opened the panel manually, it would’ve required placing his body between the car and the panel. Realistically, the panel would’ve hit the inspector, not the car. They issued a denial of liability letter and never heard from the tenant again.
Key Takeaways
What should you do if you accidentally damage someone’s property during an inspection? What can you learn from this property damage claim?
First, if you ever cause damage to someone else’s property during an inspection, document everything. Take lots of photos and videos. Additionally, inform the property owner and your insurance provider right away.
Avoid admitting fault, don’t mention your insurance to the property owner, and don’t volunteer to pay for anything. To buy yourself time, you could always say something like, “That’s unfortunate. Let me collect notes and photos and I’ll get back to you about this ASAP.”
Volunteering to pay can look like admitting fault. And even if you want to pay out of pocket for the repairs, consulting your insurance provider first can help you tailor a response that prevents more egregious demands later.
2. No Good Deed Leaks Unpunished
An inspector was filling an upstairs bathtub with water to test the overflow. The overflow gasket failed, and water seeped through the ceiling into the kitchen below.
Luckily for him, his clients were standing in the kitchen when the leak started. They ran upstairs to inform him, which allowed him to shut off the water quickly and use a rubber drain stop when the tub continued to drain. He called and texted the listing and buyers’ agents to inform them, and was at the house for another hour wrapping up the inspection. He also looped in our claims team, who immediately started collecting details.
Our team spoke with the buyer, who was thrilled the inspector had tested the overflow and discovered the defect. Thanks to their inspector’s thorough reporting, they were able to make an informed decision. For multiple reasons, including several unrelated to the leak, they decided not to purchase the home.
The seller, on the other hand, was less than thrilled. They’d researched the inspector’s standards of practice (SOP), which stated he was not required to test the overflow—only the main drain. Moreover, they’d experienced problems with that bathtub before, but they’d already had the drain line repaired. In their eyes, the inspector exceeding his SOP incited the leak and caused the buyers to back out. They demanded $1,700 for repairs.
The inspector explained that the SOP is a minimum standard, not a strict guideline. Our claims team agreed. They issued a denial of liability letter for this property damage claim, where they ruled the defective overflow gasket as a pre-existing condition. They directly quoted his SOP, too, confirming the inspector’s right to provide a higher level of performance as long as he meets the minimum standards.
We closed the claim at no cost to the inspector.
Key Takeaways
This inspector did several things right. Not only did he take thorough photos and videos of the leak. But he also acted fast and didn’t leave the house right away after he stopped the draining.
Try to plan your inspections so you don’t walk away from bathtubs, showers, or sinks while running water. And give yourself a buffer so if something does happen, you can stick around instead of rushing to the next site.
Another key to managing your property damage liability is knowing your standards. Review your SOP often. And if you exceed them, have a clear idea why you’re exceeding them so you can be consistent every time. In examples of property damage claims like this one, inspectors who are confident and consistent in their SOP knowledge are much easier to defend than those who aren’t.
3. Plastic à la Mode
During an inspection of a new build, the inspector tested the oven without verifying it was empty. And it wasn’t empty. If he had opened the oven door, he would’ve seen the racks and the instruction manual, all wrapped in their original plastic.
As the oven heated up, it burnt the plastic. Black smoke poured into the new home, and the oven—a higher-end model—was irreparable.
Our claims team compensated the claimants for a replacement oven, with costs exceeding $3,500. In exchange, the claimants signed a release of all claims against the inspector. Our insured inspector only paid their deductible.
Key Takeaways
You probably have a lot on your mind during your inspections. While you’re testing the oven or the bathtub overflow, you might be thinking two steps ahead to the attic or crawlspace.
In any case, try not to multitask. If you’re a newer inspector still adopting a routine, consider making a checklist. Write down your main steps in the order you’ll perform them, and add smaller steps, like checking the oven first or verifying all relevant power and appliances are back to pre-inspection status. This can prevent little, everyday missteps from snowballing into more significant property damage claims. Once your checklist is second nature, you can leave it behind.
What other kinds of steps can help you minimize your property damage liability? We share ideas in our before-you-leave guide here.
4. A Fall
One home inspector was navigating an attic during a routine inspection. The sellers, a husband and wife, were watching TV in the living room.
Suddenly, the inspector suffered a medical event and fainted in the attic. He fell through the ceiling and hit his head upon impact, putting him into a coma. The sellers immediately called 911 and even recruited their neighbors’ help until the paramedics arrived.
There was no denying the inspector caused the ceiling damages. However, our claims team wanted to give his family and his inspection team space following the accident. Instead of contacting them, our team worked directly with the sellers.
Given the unique nature of the situation, the sellers and their neighbors had opted to assume financial liability for the damages. Still, our claims team helped negotiate discounted repairs for the homeowners. We also helped pay for the repairs in exchange for a signed release—all at no cost to the home inspector, not even his deductible.
Key Takeaways
If you feel unwell or unsafe, don’t push yourself.
We don’t say this to discredit this inspector’s experience or judgment; some medical conditions flare up quickly and with little notice, leaving little time to move somewhere safe.
At the same time, this is a reminder to take utmost caution, especially in hot attics or on roofs and ladders. If it feels too dangerous, disclaim it and explain why in your report. Taking a step back is always better than harming yourself, others, or the seller’s property, if there’s a way to avoid it.
Need property damage insurance? Get a GL policy with InspectorPro.
You might see general liability insurance as just another state requirement. You’ve never put your foot through a ceiling, damaged a stove, or broken the seller’s heirloom vase. And you don’t expect it to happen anytime soon.
But as these stories show, most property damage claims are completely outside an inspector’s control. They can happen to any inspector, at any time. Rather than showing up unprepared, give your inspection business its best leg up with GL coverage.
For property damage liability insurance and claims handling that won’t damage your spirit, InspectorPro is here for you. We offer combined GL and E&O policies just for home inspectors (and home inspectors only). Fill out our online app here for a free, no obligation quote.
