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A hose bib (also spelled hose bibb) is an exterior faucet, like the one you attach your hose to in the summer. In colder climates, like in Connecticut and Rhode Island, these faucets have both an exterior valve and one located indoors away from the exterior wall so the water can be turned off in the winter to prevent freezing.
A home inspector needs to examine the hose bibs in your home carefully because a leaky exterior faucet can send water inside your outside walls, leading to mold and mildew problems. In addition, the hose bib should be properly installed for winter weather. One with pipes that run along an exterior wall could be prone to freezing.