E & O Policy

[REMREALTY]

Does the FHA have minimum requirements for E & O coverage?

 

[CANative]

FHA does not require an appraiser to carry E&O.

 

[Darrel Clark]

FHA does not require an appraiser to carry E&O.

That's correct. There is no E&O requirement in order to do FHA appraisal work.

 

[Lloyd Bonafide]

FHA does not require an appraiser to carry E&O.

But your client that is doing the FHA loan may require it.

 

[REMREALTY]

Thank you..

 

[timd354]

Does the FHA have minimum requirements for E & O coverage?

The real question is why in our litigious society would anyone perform appraisals without E&O coverage?

 

[Darrel Clark]

The real question is why in our litigious society would anyone perform appraisals without E&O coverage?

I generally have all the work I can handle and have NOT had E&O coverage for years. E&O coverage for appraisers is a relatively new phenomenon. I wonder how appraisers ever survived without it for all those years? But again, that’s another whole discussion.

 

[Mike Boyd]

I tried going without for about a year and lost many of my old clients. Most of my recent assignments are either FHA or non-lender. I might consider non-renewal if this pattern continues for the next 6 months.

 

[RSW]

I don't think I would like to take the chance of not having E&O insurance. I don't think it is a relatively new phenomenon. I've had E&O coverage since 1995.

 

[Vernon Martin]

I have had E&O for just two years, but it is paying off in an unexpected way now.

I filed suit against a debtor two months ago for a $10,000 debt from May 2007, after they continued to duck all phone calls, letters and e-mails. Then the debtor served me with a cross-complaint earlier this month, accusing me of malpractice (over a year after the report was completed). My E&O carrier, AIG, is paying for the defense against the cross-complaint. Without them, I would have had to pay a lawyer $325 per hour to defend myself and would have been forced to drop my debt collection lawsuit in order to get them to drop their lawsuit.