Managing Appraiser Liability - How To Protect Yourself

[Mike Kennedy]

http://blog.mckissock.com/managing-...FJCC5FeaVBEvDRnprQry3Gsdq2KSHw&_hsmi=30498000

 

[miktay]

Thanks Mike. This is one of the most important topics for real estate appraisers today, in my opinion. The more we know about this subject, the more we can do to protect ourselves.
I'm considering the $99 course by McKissock mentioned at the end of the article.

 

[glenn walker]

A big E & O policy because no matter how good you are it can happen. I was discussing this with one of my attorney friends last week and he said since you are a sole owner even a corporation or LLC is not that good and it's a lot cheaper and easier to just increase your E & O to about two million. If they get past one million I am toast anyway and filing bankruptcy and moving in with my father : ) LOL

 

[DTB]

A standard level of E&O, practice due diligence when completing reports and shelter your personal assets and you'll be bulletproof as can be.

 

[Elliott]

When you buy E/O your just telling the other side that there is an insurance company who will rationally decide if its worth settling or spending lots of time and money filing motions. I assume its a surreal experience to be sued over an appraisal. I don't know how many appraisers get sued or for what, but it doesn't seem to be frequent, but I really don't know. When I go through the first million, then I'll upgrade to two million.

 

[TRESinc]

A big E & O policy because no matter how good you are it can happen. I was discussing this with one of my attorney friends last week and he said since you are a sole owner even a corporation or LLC is not that good and it's a lot cheaper and easier to just increase your E & O to about two million. If they get past one million I am toast anyway and filing bankruptcy and moving in with my father : ) LOL

most appraisers don't understand how E&O works. let's say you have a $1,000,000 E&O policy. if you appraise a property for $200,000 and are sued and later it is determined that the property was really worth $300,000 E&O will cover the difference, or in this case $100,000. they can't sue you for the $100,000 and an additional $100,000 and go after your E&O policy. it's sort of like gap coverage.

 

[Vermonter]

Just took this class for CE....mainly because it was something different. Very satisfied with the content. Didn't learn a whole lot I didn't already know, but found the example disclosures and disclaimers helpful in updating and improving my own.