The photo below was taken inside an electrical panel. The Standards of Practice that most home inspectors follow, require the removal of electrical panel covers. The inspector would be looking for any number of safety issues, including the one below which shows the insulation covering of a circuit partially melted.
This circuit was one leg of a 240 volt 30 amp electric dryer circuit. Sometimes the inspector can readily determine what may be causing a problem, and would recommend corrective action by the appropriate professional or tradesperson, in this case an electrician. In all cases, whether or not the inspector can readily determine the cause of a problem, the home inspector would recommend either further evaluation and / or corrective action by the appropriate professional or tradesperson.
One possible cause of this situation could have been caused by a loose connection due to improper installation of the wire. The wire should be on the left side of the screw wrapped clockwise around the shaft, so when the screw is tighten, the wire is pulled in tighter.
