Who do you recommend for cheap E&O Insurance?

[Doug in NC]

As I prepare to renew my E&O, I'm thinking is over $600 really reasonable for insurance? I'm thinking it is not.

When I once worked with a real estate firm, it wasn't anything near that for a year. Any recommendations would be appreciated, since I need to get this out of the way soon. Thanks.

 

[Lee Lansford]

"What do you recommend for cheap E&O insurance?"



Oh, I'd say a deductible of about $250k.

 

[Fritz in NY]

LSI charges my self (25 years in the industry) and my wife (10 years in industry) $ 1,650. in NY for $ 2,500 deductable and $ 1,000,000.
We have not had any "problems" in 12 years with LSI.
I want to sell insurance. $ 1,650. x 12 years + $ 19,800. per client take 20% commission and you have $ 3,960. per deal and you do nothing, no ed, no MLS, no software, no appraisal forum, just cash every deal.

 

[Mr Rex]

When you find some for under $600 let us all know.

 

[Terrel L. Shields]

Mine is $1805... OREP....go figure. I tried to find another vendor...most won't cover anything. OREP won't cover mineral appraisals or anything over $3 million... They aren't worth a crap and I bet they would run like a turkey if you did get a complaint.

Lexington I think is the actual insurer. $500K / $5000 deduct... geez what would a million and $500 be?

 

[cwm]

Just saw this ad in Henry Harrison's online magazine. I am in the middle of my current policy so I have not investigated it yet. The ad states 1M coverage starting from $390. I have never heard of them but it seems like a good price, who knows it could be a lost leader ad.


https://www.5starappraisers.com/index.cfm?&CFID=3313956&CFTOKEN=4902962

 

[Junior Member]

Just saw this ad in Henry Harrison's online magazine. I am in the middle of my current policy so I have not investigated it yet. The ad states 1M coverage starting from $390. I have never heard of them but it seems like a good price, who knows it could be a lost leader ad.https://www.5starappraisers.com/index.cfm?&CFID=3313956&CFTOKEN=4902962

Appraisers should be careful with E&O, especially right now. Policy terms and availability are changing rapidly because of high levels of claims against appraisers. The policy referred to above, for example, will not cover any work you've done before the date of the policy (no "prior acts"). It is sold that way to avoid covering the very high risk of claims relating to appraisals done 2003-2009. Also, be sure to read any new policies being considered for exclusions such as FDIC, receivership, insolvency, fiduciary duties and other new limitations.

-- Peter Christensen (full disclosure: I'm a lawyer and I work for an E&O broker/administrator)

 

[kakarotto]

Appraisers should be careful with E&O, especially right now. Policy terms and availability are changing rapidly because of high levels of claims against appraisers. The policy referred to above, for example, will not cover any work you've done before the date of the policy (no "prior acts"). It is sold that way to avoid covering the very high risk of claims relating to appraisals done 2003-2009. Also, be sure to read any new policies being considered for exclusions such as FDIC, receivership, insolvency, fiduciary duties and other new limitations.

-- Peter Christensen (full disclosure: I'm a lawyer and I work for an E&O broker/administrator)

so my E&O for last year, won't that cover last year? it covers a period so isn't that previous company liable for any coverage during that time?

 

[PropertyEconomics]

Appraisers should be careful with E&O, especially right now. Policy terms and availability are changing rapidly because of high levels of claims against appraisers. The policy referred to above, for example, will not cover any work you've done before the date of the policy (no "prior acts"). It is sold that way to avoid covering the very high risk of claims relating to appraisals done 2003-2009. Also, be sure to read any new policies being considered for exclusions such as FDIC, receivership, insolvency, fiduciary duties and other new limitations.

-- Peter Christensen (full disclosure: I'm a lawyer and I work for an E&O broker/administrator)

Peter ... Thank you so very much for your post. Would you please elaborate on the above bolded comments you have made ... I think it would be greatly helpful to appraisers to understand the thoughts of the E&O provider and how these items might affect a policy.

I thank you in advance for your response.

 

[Calvin the Airedale]

so my E&O for last year, won't that cover last year? it covers a period so isn't that previous company liable for any coverage during that time?

Most policies are written on a claims made basis, which means that a policy which deals with the claim must be in force at the time of the claim is made, not specifically when the event occurred which triggered the claim.

This is why prior acts coverage is important. It insures you against acts which generate claims that occur before the policy is in force.