When your business involves appraising property for value and damage, you are at constant risk of being pulled into a lawsuit by those who feel that your appraisal undervalued their property and caused them some form of financial loss. Whether you are a real estate appraiser setting the market value of a home or an automobile insurance appraiser setting the amount of damage done during an accident, you need appraisers insurance to protect you from the high cost of legal action.
You are Going to Be Held Liable
In most cases you are going to be involved in giving an honest and exact appraisal of value for the lenders, the buyers and of course the insurance company. Any error or omission on your part in the appraisal process could potentially result in the loss of thousands to millions of dollars. When this happens, you are most likely going to be held liable for any losses, if you do not have appraisers insurance coverage, you can end up being ruined financially or forced into filing for bankruptcy protection.
Any time a claim is made against you, whether it is justified or not, you are going to encounter legal expenses that can be very high as your lawyer has to mount a successful defense even if you are not to blame. Should you lose in court your appraiser's insurance policy will not only cover the cost of your legal fees, but will cover any judgments and monetary awards made by the courts. You should never have to come up with any money out of your own pocket.
Other areas that the right appraiser's insurance policy may cover include slander, liable and breach of contract. In essence this type of coverage is not intended to cover small claims and petty settlements. It is intended to cover you in the cases of being faced with potentially catastrophic losses should a client lose money and decide to take you to court claiming his losses are a direct result of your appraisal of his property.
Appraiser's Insurance Can Improve Your Image
You will find that when potential customers see that you are covered by an appraisers insurance policy, it can give your business a much more legitimate and professional appearance. This will in turn translate into more trust in your abilities and boost your potential income. You should be aware that you can be sued even if it is not your fault that the property values are much lower than you appraised them at, many appraisers have ended up being sued even though general market conditions were to blame for dropping prices.
There are appraiser's insurance policies available for most type of appraisers from home and automotive to business and antiques. To get the best coverage you should use EINSURANCE to contact several insurance companies and discuss your needs. This will allow you choose the right level of coverage to fit in with your needs and your budget. Remember that no matter how accurate your appraisals are, at some time you are likely to be sued and you need to have your bases covered.
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Last Updated: 1/17/2011