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Who has the lowest prices for E & O Insurance?

Discussion in 'Running an Appraisal Business' started by rookie3, Jun 18, 2010.

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  1. rookie3

    rookie3 New Member

    0
    Oct 16, 2008
    Professional Status:
    Licensed Appraiser
    State:
    California
    Who has the lowest prices for E & O Insurance? In California, I am finding the $1 million dollar E & O insurance policies for appraisers to be quoting around $850 (OREP) to $895 (FREA) per year. I have not received quotes from LIA, Hobbs Group or Landy, but plan to call them for a quote. Does anyone know of an errors and ommissions provider that writes insurance in California for less? If so, please advise and thank you in advance.
     
  2. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    Shouldnt your question be who has the best E&O Coverage at the best price?

    When you say cheapest ... you sound something like an AMC ... to hell with quality I just want CHEAP ....... :unsure:
     
  3. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I just renewed with Landy, and they are about the same as the others. It ended up about $150 higher than last year.
     
  4. Roy Courtney

    Roy Courtney Senior Member

    3
    Dec 8, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Texas
    Should E&O premiums be higher for AMC appraisers with the 48 hour turn time requirements? It seems to me the risk would be greater? Opinions?
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    316
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    E & O is worthless and I certainly would buy the cheapest possible.
     
  6. rookie3

    rookie3 New Member

    0
    Oct 16, 2008
    Professional Status:
    Licensed Appraiser
    State:
    California

    Hello PropertyEconomics. You make a good point. Under normal circumstances I would be thinking the way you suggest, since overall value should be the goal. However, since I have not done a lender appraisal since May 2009 things have been extremely lean financially. And, unfortunately I am in the position that I may need close down my business. Therefore, I am currently in need of more affordable E & O insurance, which may include a decrease in quality and value. But, hopefully not. Thank you for your response!
     
  7. panappr

    panappr Senior Member

    4
    Dec 5, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I have to put mine on a credit card this year..... first time. Like Terrell said it's probably worthless anyway. I never could figure out the logic in paying for something that expires all prior acts when you forfeit your policy? :angry: We should be able to say we're not responsible for that appraisal I quit yesterday!!! :new_multi:
     
  8. rookie3

    rookie3 New Member

    0
    Oct 16, 2008
    Professional Status:
    Licensed Appraiser
    State:
    California
    Panappr, you make a good suggestion about paying with a credit card. If I make payments to FREA, then there is an additional $100 fee in addition to the $895 premium. A credit card may make better sense if there is not a charge for paying with it. Thank you for the suggestion.
     
  9. Tourist

    Tourist New Member

    0
    May 21, 2010
    Professional Status:
    General Public
    State:
    California
    E & O

    Going through the E&O process too. After searching the Forums and submitting several apps. the best 2 I found were...

    J.A. Price Agency / Star Insurance Company for $575 on a $1,000,000 policy with a $1,000 deductable

    and

    Capital West Insurance / CNA for $592 for a $1,000,000 policy with a $2,500 deductable.

    Neither quote covers prior work.
     
  10. rookie3

    rookie3 New Member

    0
    Oct 16, 2008
    Professional Status:
    Licensed Appraiser
    State:
    California
    Great prices, but not workable for most if prior acts are not covered.


    Hello Tourist,

    Both of the quotes that you received are very reasonable. My guess is that both policies are not for appraisers in California. However, even if they were it would make no sense to switch since as you mentioned neither quote covers prior work.

    Both insurance carriers must be seeking new appraisers who have no prior liability exposure. All I can say is that if E&O insurance were for consumers, my best guess is that the insurance commissioners would have required that the insurers would cover any claims if a suit were filed within the time frame of the policy. It seems strange that an E&O insurer could walk away from an insured that had their insurance at the time of the incident and/or law suit filing.

    It sure doesn't make it easy for appraisers to shop and switch insurers for another policy. Unless I am missing something, it would appear to hold the appraiser hostage to the initial insurer.

    Tourist, thank you for your contribution!
     
    Last edited: Jun 23, 2010
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