An electrical inspection is an inspection which will help ensure that all electrical systems and wires in a home or building meet legal safety standards. There is a national electric code which many electrical inspectors will use when determining whether a certain electrical installation is acceptable. In some cases, an electrical inspection, or even multiple inspections, will be included with an electric permit, often required by local governments.
If your home does not meet minimum electrical safety standards, then you run the risk of massive electrical failure that can cause power outages, excessive energy loss, or worse, electrical fires.