It sounds like the inspector did not do a good job. It also sounds like the company specifically had two levels of reports with one being more critical than another. But I have some comments about the defense. The one piece of information that the defense left out is that an unreasonably critical report can also get a home inspector into hot water. If it is determined that a HI is too critical, like calling for a new roof when it still has life left in it, the HI could get sued by the seller for wrongfully scaring off a buyer. I would have argued that it is for this reason that HI's need to balance acceptable aspects of the house with the defects. An evaluation of a house would be incomplete without documenting that you have checked everything. If we check it, we must comment that it is "OK" or otherwise in servicable condition. It is a fine line we walk.