E&O insurance - How much coverage do I need?

[Timbo813]

Hi - I'm starting my own residential appraisal business and realize I need to purchase E&O insurance. I will be a one-man shop in Florida and will only appraise homes. I've sought a couple of quotes for $1,000,000 in coverage and the premiums are around $820/year. Is that typical and would you recommend any specific companies? Thanks in advance for your thoughts. Tim

 

[The Bob]

I've been with LIA for decades. Reasonable fees.

Appraiser Insurance - Liability.com

Appraiser E&O and General Liability Insurance from LIA. Get your Real Estate Appraiser errors and omissions insurance from the oldest, largest and most successful E&O provider for both residential and commercial appraisers.

www.liability.com

 

[Mark K]

I've been with LIA for decades. Reasonable fees.

Same here, same insurer for going on 30 yrs. $820 for $1M coverage seems reasonable. Mine is a bit higher but I have $1M/$2M aggregate because some clients require $2M. Rate has been about the same for a long time, no claims, knock on wood.

 

[CGinMN]

OREP was about $700. I went with them because they offer free CE, although I found out afterward they are not approved for CE in MN.

https://orep.org/free-continuing-education/

 

[Terrel L. Shields]

You probably do not need a $1 million. How can you do a million dollar in damages? At worst the difference between your value and the real value...and when would that be more than a couple hundred thousand. It would be interesting to discover if there are any studies that show what the average judgment is against an appraiser who loses in court. A half-million might be just as good. However, I understand some clients may require a million.

 

[TMG]

I've got $1m/$1m for $680 per year through OREP. The difference from $500k to $1m was not much, so I went for the gusto! Why not, $1m feels better.

I'm very happy with them.

ps. OREP is the agent, actual Insurance co. will appear on your docs. Last year my insurer was Stratford, this year its Hudson. But that doesn't matter.

 

[norapp]

Some lenders require the $1m in coverage so go with that.

 

[Cob]

J.A. Price – Insurance Services

Serving Your Interests Risk Management Program Coverage Analysis Claims Management Specialty Programs Title Agents/Abstractors Real Estate Appraisers Amateur Sports

www.japrice.com

I've had good luck with these guys.

 

[Dublin ohio]

$565 through Orep for 1M/1M. With retroactive date of 2008

 

[Zoe]

That free CE with OREP is nice. The online courses are a little tough but it is free with your premium. We can only do 14 hours in TN that is not live (virtual) for continuing education, which I think is stupid. Saves some dough on 14 hours every 2 years. We have to get 28 hours CE every 2 years but 14 hours has to be virtual (live) online.

The included classes are not live courses with OREP. Good courses though. You can take them at your own speed. Sign in and keep rolling when you have time. You don't have to spend 7 hours in one setting to complete course.