HB401 Summary

• Establishes a two-year statute of limitations for civil actions against licensed home inspectors for defects or deficiencies in home inspections or reports, property damage caused by such defects, or personal injury or wrongful death resulting from defects.

• Implements a seven-year absolute repose period from delivery of the home inspection report, after which no actions may be brought, except when the inspector had actual knowledge of a defect and failed to disclose it.

• Defines when a cause of action accrues based on when damage or injury is discovered, with special provisions for latent damage that is not discoverable through reasonable diligence at the time of occurrence.

• Clarifies that the Legislature does not intend the insurance certificate requirements in Section 34-14B-3 to disfavor contractual limitations on home inspector liability.

• Applies to all home inspections performed on or after the effective date and applies to actions commenced by any method (direct action, contribution, indemnity, counterclaim, cross-claim, or third-party practice).