Why You Shouldn’t Use a Home Inspection Company Owned by Insurance

Howdy,

This is one of those topics that makes people uncomfortable — and that’s usually a sign it’s worth talking about.

I’ve had clients ask me, “Does it really matter who owns the home inspection company?” My answer is simple: yes — ownership matters.

“If an insurance company owns the inspector… who is the inspection really for?”

The Problem Isn’t the Inspector — It’s the Incentives

Most individual inspectors are good people trying to do honest work. The issue isn’t effort — it’s incentives. When an inspection company is owned by (or deeply tied to) an insurance, warranty, title, or lending ecosystem, the inspection is no longer operating in a vacuum.

Now you’ve got multiple stakeholders in the background — underwriting, transaction velocity, warranty exposure, claims management — whether anyone wants to admit it or not.

“Bias doesn’t always look like dishonesty — sometimes it looks like what gets minimized.”

Home Inspections Are Supposed to Be Buyer-Owned and Buyer-Driven

A private home inspection is paid for by the buyer. It’s a snapshot in time meant to help a buyer make one decision: do I move forward with this property under these conditions?

It is not meant to support insurance underwriting. It is not meant to support warranty exclusions. And it is not meant to quietly feed a corporate machine that profits from risk modeling.

A Real-World Example: BPG

BPG (Buyers Protection Group) is a large national inspection company that was acquired years ago by a major corporate parent known for title and transaction services. What do you think they do with the data gathered from millions of home inspections? It's probably nothing that is in the best interest of the homeowner.

I’m not here to attack any specific company — I’m here to point out a principle: vertical integration creates a built-in conflict of interest.

“When inspections sit inside the insurance/title/warranty ecosystem, the buyer stops being the only customer.”

Why Independence Is the Whole Game

• Independence keeps the inspection honest. No corporate pressure, no downstream agenda.
• Clearer reporting. Nothing gets softened to keep deals moving.
• Fewer conflicts. No ownership ties to underwriting or warranty exposure.
• True buyer advocacy. The report exists for your decision — not someone else’s risk model.

This Matters Even More in Commercial Real Estate

In commercial due diligence, nobody should expect comfort — they should expect clarity. A PCA is about risk, cost exposure, and decision-making.

“An inspection isn’t there to make you feel good — it’s there to tell you what it will cost.”

That’s why our commercial work emphasizes cost-to-cure estimates, actionable documentation, and clear next steps — so buyers, tenants, landlords, and investors can move forward with eyes open.

The Bottom Line

If you’re hiring an inspector, you’re hiring an advocate. And advocates can’t have divided loyalties. That’s why I recommend choosing an inspection company that is truly independent — not owned by insurance, not owned by warranty, not owned by title, and not tied to lending incentives.

“Independence isn’t a marketing buzzword — it’s the foundation of an honest inspection.”

Next Field Notes post: I’m going to explain why you should never share your full home inspection report with your insurance company — and how doing so can quietly cost you coverage, money, and leverage.