The Legislature is inching its way toward regulating home inspectors for the first time.

The Senate Industry, Business and Labor Committee on Monday voted unanimously in favor of House Bill 1507, which sets registration requirements for home inspectors and requires them to carry insurance.

The bill passed the House 59-29 last month and the Senate could soon vote on it.

The bill was introduced by Rep. Margaret Sitte, R-Bismarck, on behalf of Bismarck residents Kyle and Deborah Hellman, who allege a home inspector failed to catch defects which later resulted in mold and an ant infestation in their home.

The bill would require inspectors to register with the secretary of state, take tests and carry "errors and omissions" insurance.

Although the committee applauded efforts to register inspectors and require education, there were some concerns that requiring insurance would put inspectors out of business and cause more lawsuits.

Sitte said $300,000 of errors and omissions insurance would cost $2,400 to $2,700 annually.

Melvin Zent, a part-time home inspector in Dickinson, opposed the bill because of the insurance requirement.

Zent, who averages three inspections a month, was in favor of setting some kind of education standards, but he is worried the insurance requirement will put many inspectors out of business.

It is estimated that there are between 40 and 50 home inspectors statewide.

Deborah Hellman said the insurance requirement is necessary to guarantee the consumer is benefiting from the inspection.

"Without errors and omissions insurance to back up the home inspection, it is a worthless piece of paper," Hellman said.

Sen. Joel Heitkamp, D-Hankinson, said inspectors shouldn't have to bear the full responsibility when something goes wrong with a home, but he said he supports the bill because it establishes some criteria to become an inspector.

Sen. Judy Lee, R-Fargo, said the insurance requirement will result in more lawsuits.

Lee, who is a real estate agent, said the ultimate responsibility for a defective house should be the seller's. "The buck stops with the homeowner," Lee said.

Rob Bathurst, a Bismarck physician, said he is required to carry malpractice insurance to give his patients an assurance against mistakes, and so should inspectors.

"I don't feel one bit guilty about asking for those sorts of things," Bathurst said.

Bathurst said he bought a home last summer that had roof damage and water leaks that the inspector didn't point out.

(Reach reporter Tom Rafferty at 223-8482 or tom.rafferty@bismarcktribune.com)