How much E&O and why?

[Willie]

How much E & O insurance do you carry and why? For years, I carried $300,000 per claim $300,000 aggregate. For the last 4 or 5 years I raised it to $500,000/$500,000.

LIA is claiming their claims are going through the roof, which I do not doubt, and they are raising their premiums. I'm in Tennessee and do what I and others consider to do fairly solid appraisal work and a more stable market as compared to many areas which are in sharp decline. Things didn't go up here rapidly, and they haven't gone down rapidly, in my area. I'm considering going back to $300,000. It's rare that I do anything over $400,000 in my area, and I can name on both hands the appraisals I've done over $800,000 with the highest being around $1,200,000.

Any thoughts as to how you choose your limit of liability? How much do you carry and why?

 

[JRS at OBX]

How much E & O insurance do you carry and why? For years, I carried $300,000 per claim $300,000 aggregate. For the last 4 or 5 years I raised it to $500,000/$500,000.

LIA is claiming their claims are going through the roof, which I do not doubt, and they are raising their premiums. I'm in Tennessee and do what I and others consider to do fairly solid appraisal work and a more stable market as compared to many areas which are in sharp decline. Things didn't go up here rapidly, and they haven't gone down rapidly, in my area. I'm considering going back to $300,000. It's rare that I do anything over $400,000 in my area, and I can name on both hands the appraisals I've done over $800,000 with the highest being around $1,200,000.

Any thoughts as to how you choose your limit of liability? How much do you carry and why?

LIA just jacked my rates up too. I'm calling around for quotes.

 

[larryhaskell]

Willie:

Based on the value of the homes you appraise it seems to me that $300,000 is more than enough. Seems to me that an error or omission that would cost more 300 grand would be difficult for you to do. I carry $500,000 but I do some commercial work as well.

 

[Darrel Clark]

JRS -- you may find lower rates, but if you change insurance company, you won't be covered for any prior appraisal work with the new insurance. That's the fun part of the E&O game.

 

[Ray Miller]

JRS -- you may find lower rates, but if you change insurance company, you won't be covered for any prior appraisal work with the new insurance. That's the fun part of the E&O game.

That really sucks, you paid to be covered at the time you wrote the report. The new company will not cover you and the old company will not cover you. Those outfits do have a racket don't they?

I just rewrote all my insurance with a risk company and save several thousand dollars in the process. I am covered for $1M each $5M and a blanket for $20M for all my business interest that being Wrongful Acts, product lib, gen lib, E & O, commercial auto.

 

[jay trotta]

Four years everyone has been supplying their E&O coverage to the Lneders, they got to peek at Your cost of coverage and of recent years have been requesting "Increase's" in coverage.

I increased mine just because of the reuqests, but my carrier noted what I said above, they let the cat out of the bag so we're stuck. Also, my research over the past 10 years the typical case did not exceed a loss larger than - $250,000; Now that the Greed Mungers have driven the debt so high, they are counting on action's against everyone to collect some expenses back.
The end run of all this hoopla will result in "Higher Insurance Premiums" all the way around, they will spread it out across the board, cars / HO / liability.

good luck whever you land

 

[Greg Bell]

E & O is the biggest scam since the pyramid schemes.If you change companies you will not be insured no matter how much you blew on scamiums (Premiums)Title insurance may be the grand Daddy of all scams , however..

 

[Mr Rex]

E & O is the biggest scam since the pyramid schemes.If you change companies you will not be insured no matter how much you blew on scamiums (Premiums)Title insurance may be the grand Daddy of all scams , however..

You can buy "tail coverage" but it ain't cheap. It seems E&O insurers are wary of "fee shoppers" and punish them accordingly.:new_all_coholic:

 

[A.J. Love]

change carriers and still have prior acts covered

Try Landy.com. I have always been able to have prior acts covered when changing companies. You just provide the new insurance company with proof of your existing coverage and be sure to line up the new policy before the old one expires. If you are continuously covered without any uninsured periods of time, they will cover prior acts.

 

[Blueprint]

It's rare that I do anything over $400,000 in my area, and I can name on both hands the appraisals I've done over $800,000 with the highest being around $1,200,000.

That's about the same range of values I deal with also. I would think think $300K would be adequete, especially if your clients are not requiring it. We have $500K in our office as it has been a requirement over the years from enough clients for it to be worth it. Not so much anymore though. I am not paying so it doesn't much matter to me at this point. If and when I do go on my own, I will definately consider the $300K first.