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E & O Insurance Question #2

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Pat Gries

Freshman Member
Joined
Feb 6, 2003
Professional Status
Certified Residential Appraiser
State
Colorado
I may need to explain myself on the issue of E & O Insurance from my posting a few days ago.

I am a trainee and have contacted many E & O Insurance companies and they are telling me they don't insure trainee's. I keep reading on this forum that everyone needs this E & O insurance and I am willing to purchase it if needed. One company told me that the "Mentor" should carry the insurance for the trainee.

My question is what is required for the state of Colorado.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Check with your mentor and then the company s/he is insured with.
If you don't have a mentor, you don't need E&O as you shouldn't be doing any appraisals.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Pat,
Like I posted before, I carry a whole compay policy. My policy covers anyone and everyone that works for me. Your mentor should carry the same. Or, if you mentor is not willing to pay for your coverage, maybe you could offer to chip in on the cost of a company policy.
 

Lee SW IL

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Just checked with my E & O today.

Appraisals performed by my company, (Gateway Appraisal) me or a contractor they are insured. If the appraiser is a self employed contractor that also does appraisals for his own company those reports would not be covered.

As a trainee, you would not be able to perform an appraisal without a mentor.
 

Richard McCullough

Freshman Member
Joined
Aug 18, 2003
Pat,, I am also in the same boat as yourself. I have contacted most of the E & O insurance companies and have been told that they don't or won't insure Registered Appraisers. If one of you kind and considerate Licensed Appraisers could direct us to a company that would, I am sure most Registered Appraisers would be happy to get insurance. My mentor is insured through his Real Estate Brokers license with an Appraisers rider on it and it will not cover me also.. and without insurance most mentors don't wish to "MENTOR" then,, any help with this would be greatly appreciated. Thank you all in advance for the NAMES of such companies. Rick
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Have you checked with www.liability.com . The only comment thought that I have is what if as a trainie you did an appraisal for a company while employed there. Then get sued after you leave. You may not be covered. I don't know the legal ramifications but that would be the question that I would have. They may cover the company for an appraisal report but does a E&O company cover the individual even after he/she left?
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Ditto what Pam said.

As far as I know the state of Colorado doesn't have specific requirements for E&O insurance, but that doesn't mean you can't be sued by a homeowner or lender if you goof up. They'll just go after your personal assets instead of your insurance. :eek:

The risk of insuring a registered appraiser without a supervisor would be very high, so I doubt you'll find an insurance company that would cover you.

Why would you need E&O if you don't have a mentor? It's highly unlikely that you'll find any paying clients who would or could accept your appraisals without a supervisory signature when you're still at the trainee level. If you do have a mentor you should approach them for coverage as a rider on the policy. If your mentor doesn't have insurance, then it might be time to part ways, because no coverage means liability exposure for you. Any mentor who doesn't have liability insurance on their trainees would be sticking out their necks big time.
 
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