E & O -- Up 9.55%

[Larry Lyke]

My annual E & O renewal quote is up by 9.55%. Am in solo practice. Zero claims.

Apparently they aren’t taking into consideration what a good, moral, non-smoking, non-drinking, good-looking appraiser I am. Let alone how really good my work product is. [While smiling]

BTW, has any E & O company ever asked you ! for an example of your work -- before somebody’s made a claim against you? After all, licensing is a pretty low threshold to this business.

----- When you respond, please be specific so the other 12,000 Forumites might be able to use our discussion to get a better handle on their E & O.

• Are your limits different?
• Does your policy cover FHA?
• Does your quote cover the past year? *, **

----- Facts regarding my quote

• $250,000/each claim
• $250,000/aggregate
• $1,000 deductible

----- Actual Quote

Annual Premium: $420.00
Premium Tax: 12.60
AASCA RPG Fee: *** 40.00

Total Quote: $472.60

______________________________
* My renewal date is: 6-30-04

** Even though I was insured last year, my new quote includes coverage for “Prior Acts” with a “Retroactive Date of 06/30/03” {meaning a typical year in the past}, which I’m told can’t be separated out (read optional) -- but I said that’s what last year’s policy was for !! ! !

*** Stands for American Academy of State Certified Appraisers Risk Purchasing Group
_______
L- in MN

 

[Otis Key]

Haven't gotten the renewal notice yet - just got covered in Feb.

$500k, $500k w/$1k DD, environmental ryder and better looking with better work product than you and still paying just over 750 for a year - no claims, no errors, no baulks, no fouls.

 

[Ross (CO)]

Yes, Larry, I'm afraid it is part of the real world. I have to pay-up my premium before July 3rd......and it will be 6.4% higher, and I did not change any element of my policy or coverage. No claims, no penalties, no employees, no trainees, non-smoker, and I exercise regularly about four afternoons per week......so what ? They have their reasons, they have their paranoia......about the future, and the ramifications of more and more skippy-reports causing chaos.

I'd bet most, if not all, replies your posting will receive shall show an upward trend of everybody's E & O costs. Can you actually imagine a respondent telling the rest of us that their premiums went down ? ! .....not in today's market environment.

 

[Verne Hebert]

Sorry to drift on the thread.

My health insurance is up 44 % this year.

I have 8 rental properties; each up about 30 % this year.

TAXES..................AND.................INSURANCE............WOOO!

 

[Farm Gal]

Larry:

Are you saying that htey onlycover you for "12" mos of prior acts and not '24' as of this year ... :blink:

Neat trick, your prior acts coverage obviously isn't worth the paper its written on. <_<

It is time for ethical appraisers to raise fees. Let Skippy run him/herself into the ground.

 

[Larry Lyke]

Thanks for all the replies, but no one gave me any information regarding price, even via PM. That's the area that interests me, based on my bill of particulars, above. Actually, I would have thought I'd get about 25 replies.

Lee Ann --

You are reading my mind. And high-lighting my quandary:

Q. "Are you saying that they only cover you for '12' mos of prior acts and not '24' as of this year?"

A. My interprestation, as the lady explained it to me, is I pay for the full year going forward as standard and they cover the past year as ?overlapping? coverage. Like, yeah ...

AFTER ALL, I was insured last year -- with them.

I'm looking for some good persons who say they got this great E&O agency and great rate and gonna tell me name and phone I can call to get a quote, or a website.

Somehow, I thought this carefully constructed post would have been a great attention getter, and when I'd gotten the whole issue sorted out and wrote about it here, everybody would send me accolades when I announced THE insurance company or agent to contact for a sensible rate. Otherwise, we've probably got 10,000 appraisers buying on the spot market and paying widely varying rates. In fact, I would have thought some company would be trying to corner the appraiser market by soliciting the addresses on the petition, which is searchable from the Internet.

SHARE, don't hide your good fortune. You may PM me, if you will.

L- in MN

 

[Otis Key]

Thanks for all the replies, but no one gave me any information regarding price, even via PM. That's the area that interests me, based on my bill of particulars, above. Actually, I would have thought I'd get about 25 replies.

And I look like what??????????????????

$500k, $500k w/$1k DD, environmental ryder and better looking with better work product than you and still paying just over 750 for a year - no claims, no errors, no baulks, no fouls

Obviously, in MHO, I must be ranking amongst the "NO ONE" life. Oh well - maybe next life!

Maybe I should be more clear?!???????????

 

[Kelleen Hellmann]

Have been checking out E&O myself Larry that's how I found your post of June 9th. Hope this is helpful and on time if your policy ends June 30.

Liability Insruance Admin (LIA) California (800) 334-0652
Not firm quote yet - $375(totals) 300K/300K $1,000 deductible

Real Estate Support Systems, Inc (RESSI) Florida ((800) 405-5005
Not firm yet - $ 395 100K/300K No deductible

J.A.Price Agency (800)944-0119
Estimate quote - $330 300K/300K $5,000 deductible

OREP (888) 347-5273 and Landy (800)336-5422 (both under General Star they use the same form)
Estimate $505 300K/600K Deductible $500 per claim / $1,000 aggregate

Haven't talked Hobbs-Five Star yet (800)497-4644 or FREA (800) 882-4410

Of course estimated quotes aren't firm and are ball park and differences in coverage (non of these have additional General Liability of course) and insurance differs -I'm finding- on your income, client base, residential & commercial % and of couse claim history (i've had no claim 11 years), # of appraisers, on and on and the state you live in and probably alot more than I know. Just starting to dig into the E&O world, I'm just a dumb appraiser.

Side Bar information I found interesting:
*Ask if the deductible applies to claims expenses or just to settlement or judgement.
*a la mode posting 3/31/04 - "Bogus E&O company leaves appraisers in the lurch"
http://news.alamode.com/04/0330.htm
The Noble Group, an E&O insurance broker - Proprietor Mark Haukedahl
*Never pay agent always insurance co. itself (sounds like a no-brainer butt...)

 

[Ghost Rider]

Yet another advantage to getting out of the fee world - I think my last policy was something like $450 a year or so - I'm suprised they're only raising rates 10% - They payouts have been climbing

 

[george foster]

Health insurance up 68% from '03/'04. Solo monthly premium from $404. to $685.00.

Median price of existing home up 15% for '03 in ME

Son's college tuition up 12% per annum for last 2 years.

Gasoline up 132% from '01.

Cable/net up 37% from '02

Greenspan's 3% inflation rate.............BullShirt!!!!!!!!!!!!!!!!!