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E & O Insurance

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Ajax in CA

Thread Starter
Sophomore Member
Joined
Jul 11, 2007
Professional Status
Certified Residential Appraiser
State
California
My E & O Insurance expires in March and I must renew. I now, and in the past have had $1,000,000.00 coverage. I am curious as to what some of you would advise as to the amount of coverage one should have. I can get less coverage for a smaller premium, but I am hesitant to do that. My business has fallen a great deal and money is hard to come by at this time, however, I don't want to cut corners where I shouldn't. I'll be having knee replacement surgery the beginning of February and will be unable to work for some time, which means no income.

I read on this forum how some of you have had to go through lawsuits and it kind of scares me. I am an honest, ethical appraiser. I like to sleep well at night and would appreciate any advise on the amount of E&O coverage you'd recommend. I realize insurance is an important part of this business, but would like to hear from others....

Thanks,

Ajax
 

michaelgraybeal

Sophomore Member
Joined
Jun 26, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I currently have $250,000 in coverage(Strickly residential) and am going to up it to $500,000. 1,000,000 may be kind of high, unless you specialize in the higher end homes.
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
LIA advised me to carry 300k insurance. They said they advise most of their residential appraisers to carry this amount - it's enough. if you do higher end properties, then maybe not.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
My E & O Insurance expires in March and I must renew. I now, and in the past have had $1,000,000.00 coverage. I am curious as to what some of you would advise as to the amount of coverage one should have. I can get less coverage for a smaller premium, but I am hesitant to do that. My business has fallen a great deal and money is hard to come by at this time, however, I don't want to cut corners where I shouldn't. I'll be having knee replacement surgery the beginning of February and will be unable to work for some time, which means no income.

I read on this forum how some of you have had to go through lawsuits and it kind of scares me. I am an honest, ethical appraiser. I like to sleep well at night and would appreciate any advise on the amount of E&O coverage you'd recommend. I realize insurance is an important part of this business, but would like to hear from others....

Thanks,

Ajax
I have $1 million coverage. I would not consider reducing this amount even if you are hurting financially. The worst of the market decline is not over yet. We still have a recession to wade through.

Lenders look at our E & O as loss mitigation and dropping it now or reducing coverage now is not the best thought you can have looking at the future.
 

jonhig

Sophomore Member
Joined
Nov 1, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
$550,000 for me and I sleep pretty good at night.
 

frozone

Sophomore Member
Joined
Jul 20, 2006
Professional Status
Certified Residential Appraiser
State
New York
I would say at least 500k, but it definitely depends on your market.
Do most of you have E&O specific to you or a general company covered E&O?
 
Last edited:

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
E & O is the Biggest scam since Enron..
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I would say at least 500k, but it definitely depends on your market.
Do most of you have E&O specific to you or a general company covered E&O?

NC does not license Appraisal firms. They license Appraisers. So here, its every man for himself, unless he/she is a woman.
 

Kevin A. Spellman

Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
I have been carrying a million dollar policy for both residential and commercial since 1991. Most national lenders I service require a million. The price difference for a million may not be that different. The most I paid was around $2,500 and the lowest about $800-$900. It goes off the gross and the number of appraisers. My E & O does not cover vacant land.
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
I have been carrying a million dollar policy for both residential and commercial since 1991. Most national lenders I service require a million. The price difference for a million may not be that different. The most I paid was around $2,500 and the lowest about $800-$900. It goes off the gross and the number of appraisers. My E & O does not cover vacant land.

That was my thought. I know on my policy the difference between a million and 1/2 million is maybe $200.
 
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