Errors and omissions insurance for real estate appraisers is more than just a good idea – it is often required. E&O insurance helps protect your business against claims that professional services or advice rendered may have resulted in financial loss for clients, which is especially critical considering appraisal evaluations can impact mortgage approval and home sales processes directly.
Errors and Omissions Insurance for Real Estate Appraisers is also known as malpractice or professional liability coverage for real estate appraisers. Many states mandate E&O coverage for all appraisers performing fee work; additionally, clients and AMCs often require it, making acquiring new assignments more difficult without it.
Real estate appraisal can be an intricate task involving multiple parties, creating opportunities for errors to happen. Although these mistakes may seem minor at first, some can have serious repercussions for homebuyers, sellers or lenders alike. An incorrect property square footage count could result in either an over or undervaluation – which may have repercussions for buyers, sellers or lenders if an appraisal mistake damages their property value. Clients could potentially sue an appraisal service if damage results from misjudging an appraisal report.
Claim numbers have seen an exponential surge in recent years due to the mortgage crisis, leading to higher premiums and increasing claims frequency. Now, however, it appears as though this crisis may have passed and premiums may begin declining again.
Appraisers should report all claims or incidents immediately, no matter how minor. Failure to do so could void their coverage in case the case goes to trial. Furthermore, appraisers should avoid switching insurance providers too frequently as this could mean prior appraisals being excluded from coverage when the new policy takes effect.
Brauner: If an appraiser fails to disclose any disciplinary matter on their insurance application, they could risk losing coverage in an event of litigation. Therefore, it’s essential that all applicants for Errors & Omissions Insurance for Real Estate Appraisers be as forthcoming as possible with their agent when applying.
Landy Insurance provides tailored Errors & Omissions insurance for Real Estate Appraisers that addresses their unique needs as residential appraisers. You can select coverages and limits that fit your appraiser business model, such as subpoena coverage, discrimination coverage and drone photography coverage. With our convenient e-commerce platform you can obtain coverage quickly; many clients even benefit from same day coverage confirmation! Visit Landy’s site now to request a quote or to apply for E&O Insurance for Real Estate Appraisers now; it will protect both your business as well as ensure valuable services are continued to your clients! We look forward to hearing from you and seeing you soon!