(**) Disclosure: This post may contain affiliate links, meaning our company, JCHQ Publishing will get a commission if you decide to make a purchase through the links, but at no additional cost to you.
The role of a home inspector is to conduct a thorough evaluation of a home before its sale. This inspection allows potential buyers to identify any major problems with the property that could potentially cause costly repairs down the line.
In addition, home inspectors often provide helpful advice on repairs or maintenance that could improve the overall value of the home. Ultimately, a home inspection can give buyers peace of mind knowing that they are making a sound investment.
Personally, I always hire a home inspector before closing any of my real estate transactions. It helps me to understand the property better and make sure that there are no hidden surprises.
To become a home inspector in Montana, the candidate must:
- complete 40 hours of home inspector courses or pass the National Home Inspector exam,
- obtain a minimum of $100,000 general commercial liability insurance and $100,000 E&O insurance,
- get covered under a workers’ compensation policy or obtain an independent contractor exemption certificate (ICEC),
- submit a home inspector license application and fee to the Montana Department of Labor & Industry
Montana Department of Labor & Industry is the State agency that issues licenses to qualified home inspectors, sets standards for the profession, and oversees and regulates the home inspection industry.
Being a home inspector could be a good career because it offers many job satisfactions. Primarily, home inspectors get to help people. When you’re looking for a career that is both personally and financially rewarding, becoming a home inspector is a great choice.
So if you’re thinking of becoming a home inspector in Montana, this is the perfect career guide for you.
To save you time, I read through the home inspector licensing rules and did extensive research on this career.
In this article, you’ll learn the steps to becoming a licensed home inspector in Montana, income updates, and FAQs on this profession. I’m confident this will give you a better idea of whether being a home inspector is right for you.
Before we start, just a brief disclaimer that the information in this post is for general information only and is not intended to provide any advice. Although I tried my best to obtain the info as accurately as possible, they are subject to change without any notice and are not guaranteed to be error-free. You should always follow your State Laws and home inspection best practices.
Table of Contents
- 7 Steps to Become a Certified Home Inspector in Montana
- Step 1: Complete the home inspection education or pass the exam
- Step 2: Obtain insurances
- Step 3: Covered under a workers’ compensation policy or obtain an independent contractor exemption certificate (ICEC)
- Step 4: Become a member of a national home inspector association
- Step 5: Register with the Montana Department of Labor & Industry
- Step 6: Start working as a home inspector
- Step 7: Renew the license
- Career Advice from a Licensed Home Inspector
- FAQ on the Home Inspector Profession in Montana
- (Video) Montana Home Inspector License Requirement
- Other Helpful Resources:
The first step to begin in this career is to equip yourself with the necessary home inspection knowledge and obtain the Home Inspection Certification. ICA has years of experience in providing high-quality home inspection training. Here’s the link to their classes. (**)
7 Steps to Become a Certified Home Inspector in Montana
Step 1: Complete the home inspection education or pass the exam
In Montana, there are two routes you may fulfill the education requirement. You may either take the home inspection courses or pass the National Home Inspection Exam (NHIE). So let’s go through the two routes together.
Route A: Complete the 40-hour home inspection education
Home inspector license applicants may complete 40-hour of home inspection courses from an approved education provider. It should equip you with adequate skills and comprehensive home inspection instruction in performing home inspections.
Typically speaking, the course curriculum will cover the following key components of a home inspection:
- Roofing
- Exterior
- Interior
- Structural
- Plumbing
- Electric
- Heating and Cooling (HVAC)
- Insulation
- Fireplace and Chimney
- Ethical Business Practices,
- Professional Standards and Report
Route B: Pass the Home Inspector Exam
Passing the National Home Inspector exam is another way the Montana Department of Labor & Industry ensure you have adequate home inspection knowledge.
The National Home Inspector Exam, it is a 4-hour exam consisting of 200 multiple choice questions (25 are pretest questions and will not be scored)
It covers 3 major domains, including:
- Property and Building Inspection/Site Review (63%)
- Analysis of Findings and Reporting (25%)
- Professional Responsibilities (12%)
The National Home Inspector Examination is “scale scored” from 200 to 800, with 500 as the passing score.
The exam is maintained by the Examination Board of Professional Home Inspectors (EBPHI) and administered by PSI. There’s an exam fee of $225.
Step 2: Obtain insurances
As a home inspector, you are responsible for providing accurate and objective information about the condition of a home. Your clients rely on you to help them make informed decisions about buying or selling a home, and if something goes wrong, they may hold you liable.
To my understanding, commercial liability insurance is a type of coverage that helps protect businesses from financial losses resulting from damages or injuries due to their business operations.
E&O insurance can help protect you from financial damages that may result from errors or omissions in your work as a home inspector. Depending on the terms and conditions of your coverage, typically speaking, they help cover the cost of your legal defense, as well as any damages that may be awarded, but to a certain maximum.
In Montana, whether you are operating as an individual, partnership, corporation, or manager-managed or member-managed LLC, you must obtain:
- minimum of $100,000 general commercial liability insurance
- minimum of $100,000 errors and omissions insurance
Step 3: Covered under a workers’ compensation policy or obtain an independent contractor exemption certificate (ICEC)
I just checked on the Montana Department website. Basically, workers’ compensation insurance protects against wage loss and medical benefits to an independent contractor when a work-related injury or occupational disease occurs.
If you do not want it, you need to get an independent contractor exemption certificate (ICEC). It acknowledges that you waive all the rights and benefits that would otherwise be provided by a workers’ compensation insurance policy.
To do so, you need to complete and submit the Application for Independent Contractor Exemption Certificate. The form must be notarized and there’s a $125 fee.
Step 4: Become a member of a national home inspector association
The Montana Department of Labor & Industry requires all their home inspector licensees to join a national home inspector association.
Joining a home inspector trade association give you access to education and training resources, networking opportunities, industry news and updates, discounts on supplies and services, and more.
It also can help inspectors keep up with the latest industry standards and trends, learn from other professionals, and build their businesses.
Below are the associations recognized by the Montana Department:
- International Association of Home Inspectors (ASHI)
- American Society of Home Inspectors (InterNACHI)
- North American Association of Home Inspectors (NAAHI)
Step 5: Register with the Montana Department of Labor & Industry
To obtain the home inspection license, you must complete and submit the Application for Home Inspector Registration to the State Department. Most of the questions on the application are pretty straightforward, where you will provide basic info such as your full name, date of birth, phone number, and mailing address.
You’ll also need to provide other information such as the worker’s compensation insurance details/ ICEC # and home inspection association membership number.
On the application, you need to specify the business structure for your home inspection business – for example, sole proprietor, partnership/LLP, member-managed LLC, manager-managed LLC, or corporation.
Each structure has its pros and cons in terms of taxation and liability, so it’s better to discuss it with your accountant about it.
There is a $80 application fee. You can send them a check/money order made payable to Montana Department of Labor & Industry or pay online.
In addition to the application and fee, you also need to provide the following:
- A copy of National Home Inspector Examination result OR
- Completion proof of 40 hours of home inspection education
Once you have all the necessary document, you may submit them to:
- Registration Section • PO Box 8011 • Helena, MT 59604-8011
If you have any questions about the home inspection license registration, you may contact the Montana Department of Labor & Industry at:
- mtcontractor.mt.gov
- (406) 444-7734
Step 6: Start working as a home inspector
You may work for a company that is licensed by the Montana Department of Labor & Industry. Here’s a list of active home inspectors in Montana. However, the list doesn’t show their contact info, you can try reaching out to them through Google Search or LinkedIn. Perhaps, some of them could be hiring and willing to take on trainees.
Alternatively, you may start your own business. Depending on your goal, you may consult an accountant the business structure suitable for you (i.e., sole proprietorship, partnership or corporation.)
There are many benefits of running your own home inspecting business. You are in control of your own destiny, you can set your own hours, and you get to be your own boss. You also have the potential to make more money if your business is successful.
On the other hand, it could take time to build a sustainable client base. At the initial stage of the business, you could be spending a significant amount of time prospecting for new business and building relationships with clients and referral partners.
Once again, you also need to account for business expenses as discussed above.
Step 7: Renew the license
All licensed home inspectors in Montana must renew their licenses ever two years. To avoid interruption of your home inspection practice, it’s better to put the renewal due date in your calendar. (Just set it on your phone or laptop.)
Actually, the renewal requirement is very similar to the initial licensing. You need to maintain the general commercial liability insurance, E&O coverage, workers’ compensation policy or independent contractor exemption certification.
You must also complete 40 hours of approved continuing education for each licensing term.
If you are reading up to this point, I bet you must be interested in the home inspector profession. Your first step is to complete the pre-licensing courses. You should select one that has an excellent reputation and long-term track record of satisfying students. ICA is exactly that! You may click here to check it out yourself. (**)
Career Advice from a Licensed Home Inspector
“Earning potential will vary based on your market and your effort. It really is unlimited. There is plenty of opportunity in this industry….
Do your research, and go on a ride alongs with an inspector to make sure it is going to be the career for you. The overhead is pretty low in this business, but there is somewhat expensive equipment you will want to get that can add up. Plan for growth, and use your resources.“
Ford Shadwell, Home Inspector from National Property Inspections
If you want to know what a day in the life of a home inspector is, the career outlook, and the challenges faced on the job, here’s an exclusive interview I had with Ford Shadwell.
In there, he shared with us his journey and insight about the home inspecting profession. So be sure to check it out.
FAQ on the Home Inspector Profession in Montana
How long does it take to become a home inspector in Montana?
It takes about 2 to 3 weeks to become a home inspector in Montana. This includes the time it takes to complete the 40-hour education and prepare all the necessary documents required by the Montana Department of Labor & Industry.
However, the actual duration could vary as it really depends on how long it takes to complete the education requirement, obtain the required insurance policies, join a home inspecting association, and the time it takes the Montana Department to review your application.
One way to speed up is by taking online courses from an approved education provider. This way, you may study at your own pace whenever and wherever.
How much does it take to become a home inspector in Montana?
It takes approximately $805 to become a home inspector in Montana, including the application fee, home inspector education fee and the Independent Contractor Exemption Certificate (ICEC).
Here’s the breakdown:
- Application fee $80
- Home inspection courses $595 to $795
- Independent Contractor Exemption Certificate (ICEC) – $125
However, that hasn’t included the premium for the general commercial liability insurance and E&O insurance.
Also, if you are taking the exam route, there will be a $250 exam fee. And if you want greater confidence in passing the exam on the first trial, you may invest in exam prep. Usually, that would be $100 more.
Of course, these are just the entrance fee for obtaining the license. If you want to run a home inspection business, you need to account for other business expenses such as car, gas, phone, offices, websites, marketing, home inspection equipment and software, legal and accounting fees.
But even so, the startup cost of a home inspection business is significantly lower than many brick-and-mortar businesses.
How much do home inspectors make in Montana?
According to ZipRecruiter (Sept 20, 2022), home inspectors in Montana make an average yearly income of $58,652. The annual income typically ranges between $43,529 and $66,012. Top earning Montana home inspectors make over $76,535.
Montana home inspector income depends on several factors, including experience, geographical location, size of the property, and the type of inspection performed.
Home inspectors in Montana who have been in the business for several years can expect to earn more than those just starting out. Inspectors who work in areas with a high cost of living can also expect to make more than those who work in other parts of the state.
>> Be sure to check out our “Montana Home Inspector Income Guide” <<
Is there a demand for home inspectors in Montana?
“Montana’s new-home construction is booming. The state had the highest growth rate nationwide annually in February, with residential housing permits surging 121%, the National Association of Home Builders reports.“
Quote from REALTOR® Magazine- New-Home Construction Rising
Montana has a population of over 1.062 million. When positioning your home inspection business, you may consider areas with solid growth in home sales. According to the market updates by Windermere, Gallatin (40.5%), Flathead (36.6%), Jefferson (12.5%), and Park (6.8%) all have positive home sales growth from Q2 2021 to Q2 2022.
As long as people want to find out more about the home they purchase, there will be demand for home inspectors in Montana.
Personally, I always hire a home inspector before closing any of my real estate transactions. It helps me to understand the property better and make sure that there are no hidden surprises.
(Video) Montana Home Inspector License Requirement
Other Helpful Resources:
- How Much do Home Inspector Make in Montana? (Complete Income Guide)
- Career Talk with Ford Shadwell (What is it like to be a home inspector?)
- How to Pass the Home Inspector Exam? (coming soon)
- Home Inspector Registration FAQ
(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.
Reference:
- Montana Department of Labor and Industry – Home Inspector Registration (source)
- National Home Inspector Examination Candidate Information Bulletin (source)
- ZipRecruiter – Home Inspector Montana (source)
- Windermere – Montana Real Estate Market Update (source)
- REALTOR® Magazine -New-Home Construction Rising (source)
- Contractor Registration Rules of Montana 24.33.101 – 24.33.151 (source)
- Contractor Registration Laws 39.9.101 – 39.9.401 (source)
