Real estate appraiser errors and omissions insurance, also known as professional liability coverage, is crucial to their profession; providing financial protection while building client trust and supporting an excellent industry image.
Appraisers are responsible for creating property valuations on both residential and commercial properties, with these valuations often having a substantial effect on the buying and selling process – any miscalculation could potentially lead to costly lawsuits against appraisers. Therefore, investing in errors and omissions (E&O) insurance for real estate appraisers may be one of the wisest moves you can make for your business.
In this episode of our podcast, we examine the risks that real estate appraisers and their firms face and how E&O insurance can help to alleviate those risks. We also cover some basics about this type of coverage such as what items it covers and who needs it.
This episode is particularly noteworthy, since many appraisers and AMCs (appraisal management companies) don’t fully grasp the significance of E&O coverage or how it operates. As such, many simply purchase it out of compliance with client requests or state licensing boards; but this could be an expensive mistake if that’s all your motivation is behind purchasing E&O coverage.
E&O policies typically operate under Claims Made contracts, meaning any claim must be reported during your policy period for it to be covered. Therefore, when applying for an E&O policy through our agency or another, or through another provider altogether, it’s crucial that any and all past disciplinary matters are disclosed completely; otherwise the insurer could revoke your policy and refuse coverage should a suit arise later against you.
V2 agents understand the complexity of the appraisal industry can be daunting, and are here to assist with its complexities. We have created an innovative program specifically for individual real estate appraisers that provides modern yet flexible coverage – our agents can quote, bind and issue policies online in minutes 24/7 so don’t delay getting started now!