How to Start a Home Inspection Business + State License Requirements

What’s the most important step in the home-buying process? The inspection. Home buyers need to be sure that they’re making a smart investment — and not inheriting a home riddled with expensive problems that need fixing.

Virtually every realtor worth their salt will recommend that home buyers get an inspection, and most follow their advice. According to InterNACHI, about 5 million inspections are performed every year.

Demand is high. For aspiring business owners who are interested in the home inspection industry, starting a home inspection business is appealing. 

But where do you start? As a general rule of thumb, you’ll need to:

• Complete a home inspector training course
• Get licensed (possibly)
• Get the right equipment
• Follow your state’s requirements for opening a business
• Promote your services 

Let’s dive into the details of how to start a home inspection business, starting with the most important point: training.

What type of training do you need to be a home inspector?

Aspiring home inspectors have a couple of options for training:

1. Join one of the many training programs available, like the American Society of Home Inspectors ASHI School
2. Train under an experienced and/or licensed inspector

There are many advantages to completing a training course:

• You’ll gain all the knowledge you need to launch a successful career
• You’ll learn how to perform a property inspection that meets industry standards
• You’ll get hands-on experience performing real inspections
• You’ll even learn how to operate a business

You may need to obtain a certain number of hours of training to get your license. The number of training hours you need will depend on where you’re located and, in some cases, may not even be required.

But even if your state doesn’t have training requirements, you should still consider completing a study course (unless you already have industry experience).

Once you have your training figured out, you can focus on getting licensed (if necessary).

Do you need a license to be a home inspector?

Every jurisdiction, including every state within the US, has different licensing requirements. Some places regulate home inspectors, while others don’t. 

Click on one of the links below to learn about your state's licensing requirements.

Remember that licensure requirements can change, so do your research and verify your state’s rules.

States that require a home inspection license

Alabama

• Complete 120 hours of approved education and 35 inspections, OR 35 hours of approved education and 100 inspections.
• Complete 15 hours of continuing education every year.
• Complete the National Home Inspector Examination (NHIE) and the American Society of Home Inspectors Standards and Ethics Examination.
• Have proof of insurance coverage that meets the Alabama Division of Construction Management’s regulations.
• Pay the $300 registration fee.

Alaska

• Pass the exams offered by the International Code Council (Residential Electrical Inspector, Residential Building Inspector, Residential Mechanical Inspector and Residential Plumbing Inspector)
• Complete the state’s licensing application to become certified
• Carry insurance and a bond of $5,000
• Obtain an Alaska Business License
• Complete four hours of continued education every year or eight hours every two years

Arizona

• Complete at least 84 hours of pre-licensing education
• Complete 30 parallel home inspections to get an inspector-in-training license
• Pass the NHIE
• Meet the state’s insurance requirements

Arkansas

• Complete 80 hours of pre-licensing education from an approved training program (online programs are not accepted)
• Complete an apprenticeship that includes at least three home inspections totaling at least 10 hours
• Take the competency exam, which has two parts: The NHIE and The ASHI Standards of Practice and Code of Ethics Examination
• Complete 14 hours of continued education every year (at least 8 of those must be in-person classroom hours)
• Have at least $100,000 in general liability insurance coverage
• Pay the registration fee and apply to register online

Connecticut

• Complete 40 hours of pre-licensing training at an approved school
• Work as a home inspector intern for at least a year and perform at least 200 paid inspections, OR complete an approved training program, obtain an intern permit, and conduct at least 100 supervised inspections under a licensed inspector
• Pass the state’s oral, electronic, and written competency exam 
• Complete 20 hours of continued education to renew your license every two years

Delaware

• Apply to become a home inspector trainee
• Complete 75 supervised home inspections
• Complete 140 hours of classroom or online training
• Pass the NHIE

Florida

• Complete 120 hours of training from an approved program
• Pass the NHIE 
• Pass a background check
• Get liability insurance
• Complete 14 hours of continued education every two years

Illinois

• Be at least 18 years of age with a high school diploma or GED
• Complete 60 hours of pre-license education
• Perform five field events under a state-licensed inspector
• Submit an application and pay a registration fee 

Indiana

• Be at least 18 years of age with a high school diploma or GED
• Pass a background check
• Submit an application online or by mail and pay a fee
• Complete an approved training program
• Pass the NHIE 
• Carry $100,000+ in general liability insurance

Kentucky

• Complete 64 credit hours of approved training
• Do 16 hours of field training (no more than 8 hours in the lab)
• Complete three unpaid home inspections under a licensed inspector and submit written reports
• Pass the NHIE
• Pass a background check
• Submit a 2” x 2” passport photo
• Meet the state’s insurance requirements

Louisiana

• Complete at least 90 hours of classroom training with an approved school
• Complete 30 hours of pre-licensing platform training and 10 live inspections with an in-field trainer
• Attend the LSBHI’s Report Writing Seminar
• Pass a background check
• Get insurance
• Submit an application and pay a fee

Maryland

• Complete 72 hours of education at an approved on-site training course
• Pass the NHIE
• Submit an application and pay a fee
• Carry at least $150,000 in general liability insurance

Massachusetts

• To become a licensed Associate Home Inspector
  
  • Obtain 75 hours of education training credits
  • Complete 25 paid inspections
  • Pass a license exam
  • Obtain errors and omissions insurance
  • Submit an application and pay a fee

• To become a licensed inspector
  
  • Complete 100 supervised, live inspections
  • Complete 12 hours of continued education
  • Obtain errors and omissions insurance
  • Submit an application and pay the fee

Mississippi

• Complete 60 hours of training at an approved school
• Pass the NHIE
• Meet the state’s insurance requirements

Montana

• Complete 40 hours of education or pass a state-approved national exam
• Become a member of a home inspector association
• Meet the state’s insurance requirements
• Complete an application and pay the fee

Nevada

• Submit an application and get fingerprinted
• Complete at least 40 hours of education from an approved program
• Observe 25 inspections performed by a certified inspector, OR complete a 25-inspection course
• Pass the Original Inspector of Structures exam
• Meet the state’s insurance requirements

New Hampshire

• Complete 80 hours of education
• Pass the NHIE or a board-approved equivalent exam
• Complete an application and pay a fee
• Provide proof of insurance

New Jersey

• Complete 180 hours of education (at least 40 hours must be unpaid field inspections supervised by a licensed inspector), OR perform at least 250 paid inspections supervised by a licensed inspector
• Meet the state’s insurance requirements
• Complete an application

New Mexico

• Complete 80 hours of field training or 30 parallel inspections
• Obtain 80 hours of education certificates (see the requirements here)
• Pass a background check
• Pass the NHIE or obtain certification from the International Association of Certified Home Inspectors
• Meet the state’s insurance requirements

New York

• Complete 140 hours of approved education (at least 40 must be unpaid field inspections under the supervision of a licensed inspector), OR perform 100+ supervised home inspections
• Pass the NHIE or the NY State Home Inspector License Examination
• Pay an application fee
• Meet the state’s insurance requirements

North Carolina

• Complete 120-hour classroom training and 80 hours of field training
• Pass the North Carolina State Home Inspector Licensing Examination
• Pass a background check
• Meet the insurance and bond requirements
• Pay the application, exam, and license fees

North Dakota

• Pass an approved home inspector exam
• Submit proof of insurance coverage
• Pay a registration fee and complete an application

Ohio

• Complete at least 80 hours of education through an approved course
• Perform 10 parallel inspections supervised by a licensed inspector, OR complete 40 hours of classroom-based experience and one peer review
• Pass the NHIE
• Meet the state’s insurance requirements
• Submit an application and pay a fee

Oklahoma

• Complete 90 hours of training from an approved program
• Pass the NHIE
• Obtain general liability insurance 

Oregon

• Complete 60 hours of training at a state-approved program, OR get 20 points of qualifying experience
• Pass the NHIE
• Submit an application and pay a fee 

Rhode Island

• Assist with 50+ home inspections under the supervision of a licensed inspector
• Pass the NHIE
• Work as a licensed associate home inspector for at least one year and perform at least 100 paid home inspections
• Meet the state’s insurance requirements
• Complete 12 credit hours of continued education every two years

South Carolina

• Perform 50 inspections while supervised by a licensed inspector
• Have at least a year of documented experience working under a licensed inspector
• Complete the Verification of Lawful Presence Form
• Submit an application and pay a fee
• Obtain insurance
• Pass a background check
• Pass the Home Inspector Technical Examination

South Dakota

• Complete 40+ hours of training through an approved course
• Perform at least 100 paid home inspections and log your experience
• Pass an exam
• Be registered for at least a year
• Submit an application and pay a fee

Tennessee

• Complete 90 hours of education from an approved program
• Pass the NHIE
• Meet the insurance requirements

Texas

Texas has three types of home inspector licenses. Here are the requirements for each one.

1. Apprentice Inspector (limited to performing supervised inspections)

• Find a sponsor
• Apply for your license through TREC
• Pass a background check and get fingerprinted
• Obtain insurance

2. Real Estate Inspector (can provide unsupervised inspections)

• Work for at least three months and complete 25 supervised inspections
• Apply for your license and pay a fee
• Complete 90 hours of approved training
• Complete the Texas Real Estate Inspector Exam and the NHIE

3. Professional Real Estate Inspector (required to open your own business)

• Work for one year and complete 175 supervised home inspections
• Apply for your license
• Complete 84 hours of coursework

Vermont

There are two options for licensing in Vermont: certification and examination. Here are the requirements for each one:

1. Certification

• Provide proof of your certification and ACI membership through ASHI
• Submit an application and pay a fee

2. Examination

• Complete 80 hours of education through an approved course
• Pass the NHIE 
• Submit an application and pay a fee

Virginia

• Complete 35 hours of education and 50 supervised home inspections, OR 70 hours of education and 25 supervised home inspections
• Pass the NHIE
• Submit an application and pay a fee

Washington

• Complete the 120-hour Fundamentals of Home Inspection Course
• Undergo 40 hours of field training
• Pass an exam
• Complete a license application and pay a fee

West Virginia

• Complete 80 hours of training through an approved program
• Pass a state-approved exam
• Pass the NHIE
• Obtain insurance coverage
• Submit an application and pay a fee
• Complete a background check

Wisconsin

• Complete 40+ hours of training, 20 of which must involve hands-on training and report writing
• Pass the NHIE
• Get a score of at least 85% on the Wisconsin Statutes and Rules Examination
• Pass a background check
• Submit an application and pay a fee

States that don’t require a home inspection licence

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💡Pro tip: Even if your state doesn’t require a license to become a home inspector, it’s still a good idea to attend a training program and get a voluntary certification. This will give you credibility and help build trust with potential customers, two key things you’ll need to build a successful home inspection business.

With training and licensing under your belt, it’s time to launch your business.

How do you start a home inspection business?

As long as you have the proper credentials, starting your own home inspection business isn’t very different from starting any other type of business.

You’ll need to do a few basic things:

1. Create a business plan

To set your new business up for success, you’ll need a solid home inspection business plan. Here’s a helpful example of what your business plan might look like.

It should cover essential things, like:

• The home inspection services you’ll offer
• Your business model
• Market analysis
• Your financial plan
• How you’ll manage the business
• Your marketing strategy

Do not rush this process. Be through. Your business plan will serve as your blueprint to success, but you’ll also need it if you want to seek financing for your startup costs.

2. Choose a business name and a business structure

At this point, you may already have a business name in mind, but if not, come up with one. Choose a name that’s easy to remember and tells people what you offer. 

Before you take the next step of choosing a structure and registering your business, conduct a search to make sure your name isn’t already taken by another business.

Most states have their own business entity search tools through the Secretary of State.

Next, you’ll need to choose a business structure and register with your state. Home inspectors generally choose one of the following entity types:

• Limited Liability Company (LLC): Provides protection against personal liability for the company’s liabilities or debts.
• Sole Proprietorship: Doesn’t require official incorporation, but you, as the business owner, are fully liable for all business debts (which puts your personal assets at risk).
• Corporation (S-Corp or C-Corp): Also provides liability protection, but this entity type has extra costs and compliance requirements that must be met. 

Not sure which entity type is right for you? Consider consulting with a business lawyer who can explain all your options and help you make an informed decision.

Choosing a business structure is just the first step. Unless you’re operating as a sole proprietor, you’ll need to register your business with the state. A lawyer can also help you navigate this process, but most states have a simple process to follow.

3. Get insurance

Before you start marketing your business as a licensed home inspector and taking on clients, there’s another important step you should take: obtain insurance.

According to one Reddit user:

“Insurance is important. Your report will be scrutinized by many people, including realtors on both sides of the transaction, lenders, lawyers, buyers, and sellers. Everyone will interpret things differently, so you need to be clear, honest, and accurate.” 

Some states have insurance requirements that you’ll need to comply with in order to maintain your license.

Many insurance companies offer specific coverage for the home inspection industry, but generally, there are two main types of insurance you’ll need to protect your business against hazards:

• General liability
• Errors and omissions (E&O)  

E&O insurance is especially important. It will protect your small business against claims of negligence. For example, if the home buyers claim a roof issue wasn’t noted and allege that you were negligent, E&O insurance may protect your business and livelihood.

Other coverages may also be relevant to your business, such as workers’ compensation if you plan to hire people.

Weigh all of your options and consider working with an agent who understands your business. They can help you avoid gaps in your coverage that may leave you vulnerable to claims.

4. Follow your state’s requirements for operating a business

Depending on where you’re operating, you may need a business license to operate your home inspection company. Note that this is entirely different from the licensing requirements to become a home inspector!

Check your state’s requirements to see if you need a business license and what you’ll need to get one. For example, you may need:

• An Employer Identification Number (EIN)
• Proof of operating capital
• Proof of your tax status

Typically, you’ll need to pay a fee to obtain your license.

What equipment do you need to get started?

With the formalities of starting a business out of the way, it’s time to shift focus to what you’ll need to operate and get things up and running.

Here’s the good news: inspectors have minimal overhead. But you will need some standard equipment.

Standard tools and equipment 

• Electrical testers
• Flashlights
• Respirators (half-face and full-face)
• Gas detector
• Moisture meter
• Carbon dioxide analyzer
• Infrared thermometer
• Continuous radon monitors
• Infrared camera
• Microwave tester
• Telescoping magnets and adjustable mirrors
• Smoke pen
• Compass
• High-traction roof boots
• Electrical gloves
• Safety goggles
• Ladders

Home inspection software

Along with the physical equipment listed above, you may also want to invest in a solid home inspection software solution.

Software can help you generate a more professional home inspection report for your client base. Many solutions have built-in templates that will save you time and make it easy to incorporate photos into your reports.

There are several options to choose from, so weigh your options carefully, considering your business needs and budget.

Optional but useful: routing software

As a professional home inspector, you’ll be spending your days running from one location to another. 

To ensure you get where you need to go as quickly as possible, consider investing in a reliable routing software solution, like Routific. Intelligent route optimization will help ensure you arrive on time for your inspections and use the most efficient routes possible. 

How much does it really cost to start a home inspection business?

We’ve covered a lot of ground so far, but let’s get into the nitty-gritty details. Sure, you may be excited to start your new venture, but you’re probably thinking, “How much is all of this going to cost?”

Fortunately, home inspection businesses have minimal overhead, especially if you’re operating alone.

Startup costs can vary, but according to Spectora, they can range from:

• $1,700-$2,300 if you focus your spending on training and software and invest less in your marketing and equipment.
• $3,000-$5,000 if you spend on quality training, marketing, equipment, and software.

Considering the average business will spend $40,000 in its first year, these costs are minimal.

How long does it take to get a home inspection business up and running?

What’s a reasonable timeline to get your business up and running? That depends on a lot of variables:

• Training and licensing requirements for your state (if applicable). Some states will require you to work for a year or complete an apprenticeship before you can even become licensed. 
• Whether you need to finance your startup costs. Obtaining a loan can slow down the process.
• Your state’s business requirements. Do you have to obtain a license? If so, that will also add to your timeline.

Every situation is unique, but it will likely take several months for you to get your business plan finished, to register your business, and put a plan in place for your launch. 

How do you promote a home inspection business and attract clients?

Marketing will play a key role in the success of a business. Here’s what one inspector on Reddit had to say:

“Actual inspecting homes is the minority of time you'll spend. Other aspects of the business take WAY more time to be successful. Marketing and networking takes up a large part of my time.” 

What’s the best marketing strategy for a home inspection business? Here are some tips.

Be active on social media and build a website

At least 4.8 billion people are on social media, and 8 in 10 consumers search for local businesses online at least once a week.

It’s safe to say that your client base is online and searching for your services. How do you reach them?

Let’s start with social media.

• Create accounts on the social platforms your clients are active on and using to find your services, like LinkedIn, Instagram, or Facebook. 
• Post regularly on your social media accounts. Create content that demonstrates your expertise as an inspector. 

Here’s a great example of the type of content that will get you seen on social media and attract clients to your door.

What about local search? 

• Start by creating a website. It doesn’t have to be complicated. Make sure you use your company name as your domain name (if it’s available). 
• Focus on local SEO to attract local clients.
• Ask clients to leave reviews to strengthen your SEO and reputation.

Make sure your site is mobile-friendly and speedy to keep visitors on your site and eager to take the next step (contact you to use your services).

Connect with the right professionals

One great way to get clients and spread the word about your services is to connect with professionals who will need your services or work with clients who will, such as:

• Real estate agents
• Real estate lawyers
• New home builders

These professionals can be a great source for referrals. Reach out to professionals in your local real estate market to establish a connection and let them know about your services.

Attend networking events

Face-to-face networking can also help you promote your business. Attend local events and come equipped with business cards to hand out.

After the event, stay in touch with your new connections to build solid relationships that can lead to referrals in the future.

Use traditional local marketing strategies

Traditional marketing materials are still effective for home inspectors.

One inspector on Reddit had some great advice for marketing yourself this way:

“Buy $100 worth of door hanging flyers created on UPrinting or your local print shop. Make sure your phone number and web address is on the bottom of the flyer. That weekend go on Zillow or Realtor.com and get in your car. Drive around and hang a flyer on the door of every home for sale within 10 miles of where you live. The people who are selling will likely be buying a new home and hiring an inspector.” 

Deliver excellent service

Don’t underestimate the power of word-of-mouth marketing. What’s the best way to leverage this type of marketing?

Deliver excellent service.

Be honest with your clients. Serve them well, and they will return the favor by referring more clients to your door.

The takeaway

Starting a home inspection business can be a rewarding venture. You’re helping home buyers make an informed decision when making one of the biggest investments of their lives.

Fortunately, getting started is straightforward once you have the proper training and licensing. Use our guide to start building your business and attracting new clients to your doorstep.

Checklist

• Complete a training program

• Obtain your license

• Create a business plan

• Invest in equipment and software

• Choose a name for your business

• Choose a business structure

• Register your business

• Launch your marketing plan