Most issues with home inspector liability are not due to the inspector being negligent or in any way remiss in his duty.  Instead, they are typically due to latent defects that exist in a house that cannot be detected during a visual inspection for a number of reasons, and the defect only becomes apparent later due to changing conditions.  Even though their should be no liability in these cases, people pursue them anyway and the inspector then needs to fight an uphill battle trying to prove, long after the initial inspection, that the defect could not have reasonably been detected during the visual inspection.

Being able to hold an inspector liable for an unlimited dollar amount for a perceived mistake in a service that typically only costs $300-500 already happens.  However, our limitation of liability in inspection agreements mitigates this to a degree.  Lifting our ability to limit liability will do tremendous damage to the industry for a number of reasons

-  The number of claims against home inspectors will rise significantly.  When people are on the hook for expensive repairs, regardless whether or not an inspector may be at fault, some will chase wherever the money is.  In legitimate cases currently, inspectors can be and often are held liable for more than their contract states.  Once word gets out that the limitations of liability are lifted, it doesn't take a detailed study to figure out that the number of claims, especially illegitimate ones, will rise.

- Insurance costs will skyrcoket.  They are high already.  This will push low volume inspectors out of the industry as well as inspectors that don't want to handle the extra liability.

- Home inspection fees will skyrocket.  Few inspectors will absorb the higher insurance costs and take on the extra liability without passing those very real costs directly to home buyers.

- Fewer home buyers will get home inspections.  With higher home inspection fees, many buyers will forgo having an inspection in the first place.  This in turn will leave these buyers much more susceptible to inheriting major problems in a home purchase, which will cost them far more in the long run than the inspection fee would have been.  Also, because higher fees will likely push out a disproportionate number of lower income buyers, such as those getting FHA or VA loans, lower income and minority buyers will be more prone to future major home expenses.

- Realtor liability will likely increase.  Most home inspector insurance policies provide agent idemnity.  With fewer people purchasing inspections due to increased cost, agents will be idemnified from house problems less often.  Those chasing after the money that have no home inspector to go after will instead target the next representative with insurance, the Realtor.

- More increased cost to consumers as inspectors will far more often recommend specialist inspections to mitigate liability for those respective systems.

- To better defend against frivolous claims, inspectors may start reducing inspection quality by adhering only to required components of the Standards of Practice, and including and adhering to clear language in inspection agreements that the inspector will only inspect mandatory systems and nothing more.