Appraisers Insurance Quotes
Appraisers Insurance is a specific variation of Professional Liability (often called Errors & Omissions) Insurance designed primarily for real estate appraisers. Check out the Errors and Omissions Insurance description for further background information.
A lender or a buyer could sue an appraiser if he believes that an error, omission, or act of negligence on the appraiser’s part resulted in some sort of financial loss. Most often, an appraiser will be sued if the property estimate is too high, but there have been cases involving appraisals that were too low. Sometimes appraisers are sued if a property goes into foreclosure, even if no error or mistake in judgment was made.
The insurance protects the appraiser from financial losses and expenses (including legal fees) that result from a claim. Some policies also protect against slander, libel, and breach of contract.
What Appraisers Insurance Is Not
Appraisers' Insurance doesn’t offer protection from fraud or willful misconduct. It also isn’t designed to protect the appraiser from small or petty claims; rather, it’s a safeguard against catastrophic losses.
Who Needs Appraisers Insurance?
Some third parties may require appraisers to carry Appraisers' Insurance. Even if not required, it often makes good business sense to carry it. Such coverage adds an extra measure of legitimacy to your practice, and gives clients more confidence in your professionalism. Proof of your professional licensing credentials may be required before you qualify for Appraisers' Insurance.
Although the vast majority of Appraisers Insurance is for real estate appraisers (both residential and commercial), specific policies may be available for other types of appraisers, including insurance, art, antique, and even horse appraisers.
Things To Think About
It’s a good idea to talk to some lenders and an insurance agent to determine how much coverage you need. Coverage amounts vary by location and by the types of properties you appraise. Commercial real estate appraisers typically pay higher premiums, as the potential for financial loss from an inaccurate appraisal is significantly higher.
Remember, even if you’re not at fault, you might still be sued, and Appraisers' Insurance can help protect you from expensive legal fees. Appraisers have been sued after general market conditions caused property values to plummet. So, accurate appraisals are no guarantee against someone coming after you in an attempt to recoup some of their loss.
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