People pay good money for home inspections and they should have some protection when mistakes are made, according to Patricia Rothberg, of Bismarck.

Rothberg testified in favor of a bill Thursday that would allow the state to regulate the home inspection industry, which involves an estimated 40 inspectors statewide.

"People need to be protected," Rothberg said.

Rothberg told the House Government and Veteran Affairs Committee that she had to pay $5,000 to fix a saggy roof soon after she bought a home. She said the inspector, whom she paid $375, didn't catch the problem.

Her story was similar to Bismarck residents Kyle and Deborah Hellman, a couple who initiated the bill.

The Hellmans bought a home in May but moved out a month later after discovering a moisture problem originating in a skylight that caused mold and an ant infestation.

Scott Jensen, whom the Hellmans blame for not notifying them of the mold and ants, said the Hellmans' problems occurred after he inspected the house.

"That place was totally dry when I did the inspection," Jensen said.

Jensen said heavy rain between April and June was probably what caused the moisture, and that mold can appear in one week.

The Hellmans have sued Jensen, former owners Debra J. Frank and John M. Hlebechuk and the former owners' realty company.

Kyle Hellman said the case has gone nowhere because their attorney told them it would be difficult to get any money because of disclosures they signed and because Jensen didn't have errors and omission insurance.

One of the main aspects of House Bill 1507 is a requirement for home inspectors to carry insurance. The bill also requires home inspectors to register with the secretary of state, which is what construction contractors have to do now.

There were inspectors who opposed the bill, but also ones who favored it at the hearing.

Melvin Zent, a part-time home inspector in Dickinson, said requiring him to carry insurance would take 40 percent of his profits and put a crimp in his dream to start his own full-time business some day.

Dean Full, a Fargo home inspector, favored the bill. Full said that although it can cost $3,000 to $4,000 annually for insurance, it protects the homebuyer from errors the inspector might make and it protects the inspector from fraudulent claims.

However, Robert Kramer, of Grand Forks, submitted written testimony that argued that the insurance requirement would cause more fraudulent claims and drive inspectors out of business.

Rep. Louise Potter, D-Grand Forks, a Realtor, said she is not excited about the bill because it does not license inspectors.

"If you want consumer protection, it's licensing you need," Potter said.

Potter said licensing could provide an avenue for consumers to submit complaints, as well as allow the state to revoke licenses.

Secretary of State Al Jaeger didn't oppose or support the bill, but he said he doesn't want it to require him to police the industry. He said he can be an office of record for home inspectors, but any regulation would require additional resources.

Rep. Margaret Sitte, R-Bismarck, said the bill is a way for the state to put some credibility behind the profession.

"Any one of us could hang out a shingle and call ourselves a home inspector," Sitte said.

Sitte said 16 states require some kind of education for licensure, and 22 require them to take an exam.

The committee did not make a recommendation on the bill Thursday.

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