As I said, your state’s SOP does not use or define “material defect”. It does use a term defined as “unsafe”. I hope you don’t inspect, in your state, according to NACHI’s SOP, but I’m not here to stop you. You chose to chime in… you haven’t helped a bit to explain anything other than you have some “private” list of “material defects” you choose to call out. Thank you for you input, however.
I did answer the question. “Safe” is whatever, as a home inspector, I determine it to be.
If I told you where this “secret list” is, it wouldn’t be a secret anymore, now would it?
The “secret list” is actually no secret at all, it comes from years experience and will vary, and vary sometimes greatly from inspector to inspector, and can and does actually change with time, just as building science evolves and progresses, so does my “secret list” of defects.
Also, what I might consider a defect, someone else might not, and visa versa.
I do call out AFCIs that fail to trip when I press the test button.
But I don’t recommend that they be installed if not already, but keep in mind, that could change next week. 
Please expound
So far the most honest answer! However, if we practice what you preach… what gives an inspector a right to call another out and say: well, that’s not what you should call out… I don’t and therefore you shouldn’t either, or it’s not a “material defect” or it’s not “unsafe”. According to you, we all, through our experience, can call out whatever the heck we want to. Basically, there is no standard. I’m right and you are right, we are all right. Is that even possible? Then how is it resolved in court? who gets to be right, one with more experience? what does that even mean, does one become exponentially smarter with each completed inspection? Do you see what I’m saying? perhaps, perhaps not.
Haven’t I? My reply is to the OP. Your reply in the kids vernacular is as a “poser.” You asked specifically, “what is safe.” You didn’t ask what is unsafe. There is a difference. Then in an altogether smug voice we can expect from you, you state that:
As far as thanking me for my input, don’t bother. It’s not your place nor your thread. You’re just an anonymous “know it all.”
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Yes, it’s possible, and it’s reality.
Haven’t you yet learned that all home inspectors are always right, they all use the best software, they all deliver the best reports, and they are all marketing geniuses.
Don’t believe me? Just ask them.
The judge is the one who will resolve any disputes in court. That’s why I perform every inspection as though I’m on camera and I write every report as if I’m going to be sued.
One does, or at least should, become smarter moving forward, I don’t know about exponentially smarter with each inspection, but smarter in the sense of being more experienced and gaining more knowledge from taking more inspection related courses over a period of time.
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Don’t tell them they have to. Make a recommendation.
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Evaluate is Our job. If there is a problem you need to describe what it is and have the correct professional make the needed repair. If I recommend an electrician evaluate every electrical panel I’ve inspected for lack of AFCI Breakers I would have been out of business a long time ago
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Calling things out as a defect or recommending someone go to the expense of upgrading something that was not required at the time the home was built will be a call that you need to make sometimes. Such as seismic straps on a water heater that was installed in 1972… It is just as easy for an earthquake to topple over a 1972 water heater as it is a 2019 water heater. Therefore I recommend the straps be installed on any that do not have them installed. (I don’t say “need to be Installed”)
Now when it comes to electrical issues you will need to decide in your opinion what is a condition that would be beneficial to your client or something that would effect their safety. If you feel AFCI’s should be installed for safety how far you go, do you just recommend them at the bedrooms? do you recommend them be installed to today’s standards? (and this may be dependent on the state or locality of where the home is located), An example is here in Utah AFCIs are no longer required even at bedrooms. (However a few municipalities or local code authorities in Utah do require them). I simply do not call them out anymore, since the law was changed. ( some of this is based on my personal feelings and opinion that goes along with why the state of Utah did away with them, it costs almost 3 times as much to install in a home versus the cost of property lost due to fire and that is if they work 100% of the time). it is also interesting that insurance companies do not charge more for fire insurance for homes in Utah versus other states. ( and I’m sure someone here will accuse the state of Utah and me as an inspector as not caring about those that will lose their life because an AFCI was not installed…already heard it)
I’m sure most of us will recommend the installation of GFCI’s at kitchens and bathrooms no matter when the home was built or code at the time. So it will be up to us to look after our clients safety when we make recommendations. And sometimes we will go beyond code to look after their interests.
I agree, the customer is paying for the panel to be evaluated by the HI. Simply deferring every panel for further evaluation by a professional is selling the customer short.
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Thanks I now have a better understanding.
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I do this for all areas of the home, not just electrical. Decks, afci/gfci, attic insulation (I know that’s not a safety issue) etc…
What ever can make the home safer or potentially save my clients money, I recommend it.
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