TN Pro
Senior Member
- Joined
- Oct 16, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Tennessee
I have maybe 7 personal friends who are appraisers. 3 are doing okay with their business, 4 have no work at all.
All 7 are, in my opinion, good appraisers, and most of them are good businessmen.
It turns out that the 4 with no work all have one thing in common, they have E&O policies for 500k or less, while the other 3 have One Million Dollar Policies.
One of them got an email this morning from a company for whom they did a lot of work for 3 years ago, then it suddenly stopped. I was helping him figure out why, then realized it coincided with the time he also got his sales agent license, and he switched his insurance policy to the State recommended provider. They primarily cover sales agents, but he aso bought the appraisal endorsement, but it was only for $250,000 of coverage.
The email this morning clearly says that they want to send him more work, but that he should seriously consider upping his policy to a million bucks. This is an AMC. They didn't demand that he did, merely suggested it.
This affirmed my suspicion that some AMC's are picking appraisers, among other criteria, based on the amount of E&O coverage they have. None of the 4 guys with no work have been told by their clients that their lower than a million policy is the issue, but to me, it is.
I personally have two clients who demand at least a million Policy, but they were upfront about that.
Has anyone else seen this?
All 7 are, in my opinion, good appraisers, and most of them are good businessmen.
It turns out that the 4 with no work all have one thing in common, they have E&O policies for 500k or less, while the other 3 have One Million Dollar Policies.
One of them got an email this morning from a company for whom they did a lot of work for 3 years ago, then it suddenly stopped. I was helping him figure out why, then realized it coincided with the time he also got his sales agent license, and he switched his insurance policy to the State recommended provider. They primarily cover sales agents, but he aso bought the appraisal endorsement, but it was only for $250,000 of coverage.
The email this morning clearly says that they want to send him more work, but that he should seriously consider upping his policy to a million bucks. This is an AMC. They didn't demand that he did, merely suggested it.
This affirmed my suspicion that some AMC's are picking appraisers, among other criteria, based on the amount of E&O coverage they have. None of the 4 guys with no work have been told by their clients that their lower than a million policy is the issue, but to me, it is.
I personally have two clients who demand at least a million Policy, but they were upfront about that.
Has anyone else seen this?
