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AMC doesn't care if Appraisers have Errors & Omissions Insurance?

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Glen Gerber

Thread Starter
Sophomore Member
Joined
Jun 28, 2006
Professional Status
Licensed Appraiser
State
Texas
AMC doesn't care if Appraisers have Errors & Omissions Insurance?

I was contacted by an AMC looking for appraisers in my area.

I checked out their agreement......it says that E & O insurance isn't needed "If that is typical for your area"
I ended up calling them on another matter, but I asked about their E & O policy and she said they really don't require it from any appraisers on their roster.

I was taken aback.......IMO, E&O is cheap and I wouldn't think of putting my rear end on the line without it.

And I have to wonder about the "integrity" of this company if they don't care if appraisers have coverage.

I assume everyone here carries E & O?

Thoughts?
 
Last edited:

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
I think it's great that they are not hounding the appraiser for E&O.
 

Cookie

Junior Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Indiana
Me too Greg! It is not a requirement in my state to carry E & O insurance - but I have it just to satisfy all who require it.
 

David Wimpelberg

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Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
E & O is for appraisers, not for others.
 

xmtpedprl

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Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
I've never been approved with a bank here locally who hasn't asked for it, and most want a million bucks, at that. So we have that much, as I covet bank biz, end of story.

And yeah, I wouldn't want to get out of bed in the morning if I didn't have it.

Dave...
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
E&O is cheap and I wouldn't think of putting my rear end on the line without it.
Depends upon your risk management whether it will ever be of value. Maybe it makes YOU sleep better at night but frankly I don't want an E & O company defending me...they are looking out for numero uno, not you...E & O serves only one purpose. That is to get on vendor lists for companies who require it. Otherwise I'd drop it in a heartbeat and that's coming from a guy who has been sued. I wouldn't walk across the street to pee on the outfit with my E & O if they were on fire.
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
It's not required here and the only appraiser's who consistently end up in court are the ones who carry it. The clients that require it tend to be the bottom feeders that want to push their poor lending decisions off on the appraiser anyway.
 

xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
*Ahem*

I don't think the Chicagoland area banks would like to be considered 'bottom feeders,' but I'll let them defend themselves!

;^)

Seriously, not just them, but some very other notably large institutions. Are there those here who deal with major banks that get away with ever being asked for E & O..?

Dave...
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
You may want to read thier entire contract with a fine tooth comb. IF they do not want you to have E&O there is something in the contract somewhere that holds you personnally responsible for the Appraisal & Loan. IF not they are a very strange AMC. Have your E&O read the contract sure they'll find it for you.
 

kimcha

Sophomore Member
Joined
Feb 12, 2002
Professional Status
Certified General Appraiser
State
Utah
Well, I feel like the odd one here, as I have NEVER carried E & O Insurance, and NEVER will.
I've been in business for 24 years, and have never been sued or punished by any state licensing agency, and I sleep very well at nights thank you.

My theory has always been that E & O insurances is just the excuse someone needs to sue the appraiser.
Avoid the Insurance, and avoid the law suit. By the way, I don't own anything either. My wife on the other hand does pretty well for herself.

The states I work in, do not require E & O insurance, and I do not work for lenders or others who require it.

You would think with no E & O insurance I would be standing around with my hands in my pockets looking for something to do. But, it's quite the contrary, I'm booked out about 6 weeks. I work very sparingly for AMC's, and when I do, it's always at full fee.

I turned one down today that offered $230. for a 5 acre farm and residence. They said they would find someone else. And they will, and they will be from 100 miles away, and not know the market here. But in 6 or 18 months, I'll probably be doing the foreclosure appraisal, or more probably, I'll be doing a review of the original appraisal, and I will get my full fee for that too.

E & O is not a panacea, nor is it an excuse for doing just average appraisal work, or for just being a poor appraiser.

Do it (the appraisal) right the first time, know who you are working for, and have some pride.
Get paid what you think you are worth, not what someone else thinks you are worth. If you can't do those things . . . . well, you need to find a new line of work.
 
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