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How long to keep tail insurance

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Michelle B

Freshman Member
Joined
Sep 19, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I am in the process of getting out of the appraisal business temporarily, but maybe for good. I was told by my E&O insurance co. that I could take out tail insurance for a certain period of time (# of years) but once I commit to that period of time, I cannot extend it in the future. I am trying to determine how long I should have this insurance. Is there a timeframe that most appraisers use? For instance, if one retires, how long do they keep up insurance afterwards? I certainly don't want to shortchange myself and then have someone sue down the road.
Thanks...
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
How much does it cost?
 

Michelle B

Freshman Member
Joined
Sep 19, 2007
Professional Status
Certified Residential Appraiser
State
Florida
For 1 year it costs the same as regular insurance. If you pay 2 years, it's 150% and 3 years is 200%. Didn't find out beyond that because I did plan to start appraising again after I return to the US, but am now having second thoughts.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
I only buy E&O to get business. If you're worried put your assets in a trust or in your spouse's name.
 

Michigander

Senior Member
Joined
Oct 23, 2003
Professional Status
Certified Residential Appraiser
State
Michigan
The longest you can get it for is 3 years. They will not extend it, even if you have no claims or blemishes on your record. You are SOL after that period of time, no matter how long you were with your carrier. Bites :<
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I'll risk it. Three yr is the statutes of Limitations. BUt anyone can sue you 20 years later. So what is the risk. IMHO, I will just risk it. I don't average being sued but once every 17 years....
 

moh malekpour

Elite Member
Joined
May 25, 2002
Professional Status
Certified Residential Appraiser
State
California
If you buy insurance today and you are sued for what you did 2 years ago, does your current insurance covers the current lawsuit for the action that happended 2 years ago?

If you don't have insurance in 2020 and was sued for what you did in 2008 when you had insurance, does your past insurance covers the current lawsuit for the action which is the subject of current lawsuit but happened 12 years ago?
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Greg said, If you're worried put your assets in a trust or in your spouse's name.

I'm working on only owning 100 things.
 
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