> E&O/GL Insurance for Home Inspectors Competitive Rates, Broad Coverage, Free Risk Management, online inspection support for tough questions, discounts on education and more… Professional Coverage, Competitive Pricing Shop OREP today!

Rhode Island Electricians Tie Home Inspectors’ Hands

 by Isaac Peck, Publisher

On January 30, 2025, Rhode Island enacted a significant amendment to its General Law concerning home inspections. Under the new law, only licensed electricians are allowed to inspect and evaluate residential electrical systems. Inspectors who are not licensed to perform electrical services cannot open circuit breaker panels nor physically interact with wiring. The penalty for violating the law is $1,500 for a first offense.

It’s obvious that electrical safety checks are an essential part of home inspections, since things like faulty wiring, overloaded circuits, or outdated systems can cause fires, electrical shocks, and incur costly repairs down the line for the homeowner. We can assume that when the General Assembly considered the amendment, it was with a picture in mind of home inspectors being accompanied by licensed electricians, or maybe even home inspectors getting licensed as electricians? But good policy making requires the ability to contemplate unintended consequences.

It’s hard to see the passage of this new law as more than (1) a serious encroachment on a home inspector’s services and business, and (2) a significant increase in costs for the prospective homeowner, who will now be faced with hiring both a home inspector and an electrician to inspect any potential home. International Brotherhood of Electrical Workers business manager Joe Walsh left this extra cost unaddressed and emphasized the inherent value these inspections add to the home-buying process by mitigating risks associated with outdated or faulty wiring.

But critics note the logistical and financial repercussions of the law for real estate transactions. The Rhode Island Realtors Association, represented by President Chris Whitten, pointed to the strict 10-day inspection window stipulated in purchase and sale agreements, during which buyers must secure inspections and negotiate with sellers. Whitten warned that delays in scheduling licensed electricians could lead to disruptions in the transaction timeline, potentially requiring extensions and incurring additional costs for buyers.

Whitten further highlighted the unintended financial strain this legislation may impose on first-time homebuyers. Beyond the standard home inspection, buyers opting for electrical evaluations must now bear the associated expenses, which remain unstandardized, since licensed electricians set their rates independently.

(story continues below)

(story continues)

 An Electrician Shortage
According to the Rhode Island Department of Labor, the state currently licenses 1,938 electrical contractors qualified to perform inspections. This workforce, while specialized, may face capacity challenges in meeting increased demand for electrical evaluations, particularly under the constraints of tight transaction deadlines. Rhode Island could fill the gap with training and community/trade school partnerships, financial incentives, and streamlined licensing, but it will take time to get those programs in place (if they’re approved at all) and even more time to produce qualified full-time inspectors to fill the current needs. In the meantime, backlog and lost transactions could accumulate.

Combine the lack of licensed contractors with the 10-day timeframe required by law, and you have a situation where the seller may have to extend the deadline, or where the buyer might be pressured into waiving inspections—a mutual agreement that is still allowed in Rhode Island, and which could be detrimental to the buyer and the inspection industry down the line.

But what about incentivizing home inspectors to obtain electrical certification? That may address the issue (again, not right away), but we’d need to consider time and cost to the licensee, and whether home inspectors would even want to commit to this process.

What Now?
An astute observer might recognize an age-old conflict between keeping home prices affordable and ensuring consumer safety. There are a lot of stakeholders flying around in that juggling act, including electricians, home inspectors, and insurance companies, each of whom plays a pivotal role in this complex equation—as well as the buyers and sellers themselves.

While the electricians in Rhode Island are likely celebrating, the law was strongly opposed by the Rhode Island Association of Realtors. On a home inspector forum, several home inspectors voiced their dismay and criticism of the law, with one writing: “The motivation for this law is fairly obvious. It’s designed to get more work for licensed electricians in the state.”

Not only are home inspectors forbidden from opening circuit breaker panels or physically interacting with wiring, but they are also forbidden from performing any type of testing or observations—even inserting a tester into a receptacle!

Some industry insiders are predicting the electricians may try to take this model and get similar laws passed in other states, with one person adding on a forum: “I would expect other states to add similar laws to their books.”

Many question whether this move actually helps consumers as it adds a significant cost and time delay to potential home buyers and it restricts home inspectors from actually serving their clients.

This then raises the question of what home inspector associations, such as the American Society of Home Inspectors (ASHI) or the International Association of Certified Home Inspectors (InterNACHI) are going to do to protect home inspectors and consumers’ interests alike. Time will tell.

About the Author
Isaac Peck is the Publisher of Working RE magazine and the Senior Broker and President of OREP.org, a leading provider of E&O insurance for savvy professionals in 50 states and DC. Over 14,000 professionals trust OREP for their E&O and liability insurance. Isaac received his master’s degree in accounting from San Diego State University. Reach Isaac at isaac@orep.org or (888) 347-5273. CA License #4116465.

Published by OREP Insurance Services, LLC. Calif. License #0K99465