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E&O Newbie

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Dean Brand

Thread Starter
Sophomore Member
Joined
Sep 29, 2003
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I have been a bank appraiser for 4 years and now starting my own company. LIA quoted me $1,500 for $1,000,0000. OREP is like $640 for the same. Is that because LIA is covering my entire LLC and all the work under me and OREP only covers me? The price difference is more than half, is that normal? Thanks.
 

Em Tee

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
There's no way for anyone here to intelligently answer that question since we can't read the policies. Compare the two policies and find out what they each cover, or ask each insurer to explain it to you.
 

cdeyoung20

Junior Member
Joined
Aug 10, 2008
Professional Status
Certified Residential Appraiser
State
Louisiana
I would be leary of the E&O covering your LLC. I am under the impression that you are personally liable for the appraisals that you sign. Could be wrong, but I know of appraisers that were involved in lawsuits and the LLC didn't help them as far as being excluded from the suit.
 

liberated

Member
Joined
Feb 11, 2004
Professional Status
Certified Residential Appraiser
State
Tennessee
My attorney advised me not to form a LLC as I am personally signing each of my reports.
 

VolcanoLvr

Senior Member
Joined
Oct 30, 2003
Professional Status
Certified Residential Appraiser
State
Washington
OREP is an excellent value. And probably adequate for your needs. Insurance thru General Star insurance company.

LIA is a respected company. However I think their overhead costs are higher due to staffing and other items, therefore their fee is higher.
 

cdeyoung20

Junior Member
Joined
Aug 10, 2008
Professional Status
Certified Residential Appraiser
State
Louisiana
I'm not sure how things work where you are located, but, a lot of the appraisers in our state are licensed realtors. The fact is (in our state) that with a realtors license you are eligible to receive E&O insurance thru the real estate commission with an appraisal rider. The cost of the E&O insurance runs around $400 per year and yes you have to pay yearly fees for your real estate license and MLS fees. In order to have MLS we have to be a member of the board and unless you are a realtor, you are required to pay broker fees which are much higher than realtor fees and the broker MLS fees are also higher. So, any appraiser that is not a licensed realtor, wanting to have access to the MLS would have to join the board with broker status and broker bills. That is why a lot of us choose to hold a realtors license. You don't have to sell anything, you just have to have a broker willing to hold your license and take the educational courses that are required by the state.
 

cdeyoung20

Junior Member
Joined
Aug 10, 2008
Professional Status
Certified Residential Appraiser
State
Louisiana
I guess what I am trying to say, is that if you need MLS services, it may be more beneficial to go this route.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I had bids between $800 and $2500. OREP was the lowest and I took it. They cover myself and a long time registered assistant for $1100.
 

Dean Brand

Thread Starter
Sophomore Member
Joined
Sep 29, 2003
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Thanks

I found that their are claims made and non-claims made policies. Claims made covers you if a claim is made by not raising your premium, but you pay more up front. No claims made is like a good drive policy with no accidents. If you get a claim policy will increase a certain percentage when you renew. I took the gamble for a no claims made, covered just myself through landy insurance which gets the e & o through general star, which is backed by berkshire hathaway for $620 per year, for 1 million. Thanks to everyone for you input and feedback.
 
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