How long to keep tail insurance

[Greg Bell]

E & O , Biggest scam since Socialist Security............

 

[TEL2002]

If you are going to be out of country, how do you plan to do your CEUs??? just curious.

I've done virtually zero refi/purchase work in the last 3 years (almost nothing but REOs)...so when I quit I suspect I will just drop insurance all together. If you feel you are a big target, I would take it out for the max. If you are just a spec on the head of a pin, I skip it.

 

[OSU Beavers]

I thought leaving the country WAS tail insurance!

 

[Michelle B]

Moh, when you buy insurance today there is usually a rider that extends to previous work, I know that's what I had to cover all the years I worked for someone else. If you are sued in 2020 for 2008 and you don't have current insurance, your past insurance does not cover any claims. That's why if you want any coverage after you stop appraising they require you to obtain tail insurance, but apparently you can only extend it for 3 years.
I don't plan on getting sued, and don't have anything that I feel could come back to haunt me, but as you know, the way things are going right now with this market, anything's possible. Besides, people can sue you for anything, whether it's frivolous or not, you will still spend money to defend yourself.

 

[Michelle B]

I am finishing my continuing ed right now, and I will be back in June of 2010, just in time for the next round.
I wish leaving the country was tail insurance, but I do plan to come back. Hopefully the market will be in better shape than now, or on it's way up.

 

[chad hampton]

if i were going to stop appraising, i'd stop my insurance as well. Like another poster said, insurance is only needed to get business, it doesn't do much for you if you aren't working.

 

[Michelle B]

How can you say insurance is only needed to get business? Have you ever known someone to have a claim filed against them? The insurance covers the lawyers time, court costs if needed, and other expenses. Yeah, those expenses may be a crock, but they are still there. I don't know about you, but I haven't made enough money lately to cover all that extra expense out of my pocket. And again, I don't expect to be sued, but living in South Florida has taught me a lot personally and professionally, through other people's experiences.

 

[Couch Potato]

The appropriate question is, "do you have assets to protect?" If you are poor, don't waste cash on insurance. On the other hand, if you have money, people will try to take it so buy the insurance. Given the current climate, you might consider just keeping a regular policy for a couple of years as a way to extend coverage. (Assuming you are in the group with assets to protect.)

Putting stuff in your spouse's name it a great idea, right up until your spouse decides to shack up with someone else, or some judge rules it is not really separately owned.

 

[Blueprint]

Yea, I will have money, like Potato stated. I do not know much about tail insurance though. I do know that I would want to be covered for as long as my appraisals are considered a "target" by the massses. I'll risk that even if I am not appraising. The cost is minimal down the road.

 

[Michelle B]

The appropriate question is, "do you have assets to protect?" If you are poor, don't waste cash on insurance. On the other hand, if you have money, people will try to take it so buy the insurance. Given the current climate, you might consider just keeping a regular policy for a couple of years as a way to extend coverage. (Assuming you are in the group with assets to protect.)

Putting stuff in your spouse's name it a great idea, right up until your spouse decides to shack up with someone else, or some judge rules it is not really separately owned.

Evan, Those are my thoughts exactly. Better safe, then saying "I shoulda"
Couch Potato, after talking to my insurance co, that is what I am going to do-just keep my current policy opened for now.
Another interesting thing I learned is that, after being out of the business for 2 years, the insurance co. may not want to open another policy for me. Because when you renew every year and fill out that form about the amt of work you do, they ask about your workload because they want to know that you are continually working. They may look at the fact that I haven't done any work for two years as a liablity-no recent experience!! That is something I never thought about.