Whether you’re a real estate agent or investor , the real estate industry inherently deals in a lot of money, and this can be a good thing and a bad thing for the people working in it. Real estate agent insurance is crucial to many professionals in the industry because of the protection that it provides from potential risks that this field of occupation is involving.
In this guide, we’re going to take a look at the inner workings of realtor insurance, including the kind of real estate agent insurance policies that are most useful and popular to opt for. We’ll also explore realtor insurance cost based on the company you’re working with as well as the insurance requirements for real estate agents.
There are several states that require E&O insurance for real estate agents to be able to do business. In many cases, insurance companies only offer E&O insurance for real estate agents in these states since they know that there’s a guaranteed demand for it in those places. Here are the states:
Alaska
Colorado
Iowa
Idaho
Kentucky
Louisiana
Mississippi
Montana
Nebraska
New Mexico
North Dakota
Rhode Island
South Dakota
Tennessee
Real estate broker E&O insurance is also known as professional liability insurance for real estate agents and realtors. There’s no functional difference between a real estate E&O insurance policy and a real estate professional liability insurance policy.
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The cost of E&O insurance for realtors and real estate agents depends on the company that you’re working with and the kind of coverage that the policy provides. Policies with higher limits will cost you more, though many companies offer a flat rate for policies that you can’t customize.
When looking for cheap E&O insurance for real estate agents, you’ll also have to consider your history as an agent. Agents with a checkered history may pay more for their coverage or may even be refused.
Here’s a breakdown of E&O insurance cost for real estate agents and realtors based on the company that you might be working with:
Company | Cost per month | Cost per year |
---|---|---|
eXp Realty | $85* | $1020** |
Rice Insurance | $56 | $672 |
Keller Williams | $33 | $396 |
*+ $40 per transaction
**+ a maximum of $500 per year
E&O coverage is the most popular form of insurance for realtors because it applies to the vast majority of situations in which real estate agents end up getting sued. E&O insurance is also known as professional liability coverage, and it kicks in when an agent gets sued for making a mistake while working.
Real estate agents are entrusted with giving their clients information that is accurate and actionable, and if you fail to do that, you can end up on the receiving end of a lawsuit. For example, if a client alleges that you’re negligent and wins the case, E&O coverage will kick in to cover your expenses.
Along with the settlement itself, E and O insurance for realtors will help pay for expenses related to the lawsuit brought against you. These can include lawyer fees that you have to pay for your representation as well as court costs and administrative fees that you are responsible for.
When shopping around for insurance for real estate agents and businesses, it’s usually a good idea to closely consider the companies that you intend to work with. Many companies in the real estate broker insurance space are specialized because this kind of coverage requires specific knowledge that many carriers don’t have. However, to find the best rates and coverage options from the best insurers in America, we recommend you to click the 'Get Quotes' button at this page and complete the form to compare quotes online and have them all compete on your business, for your best benefit.
eXp Realty is a residential real estate brokerage that also offers insurance policies to the realtors that are members. eXp believes in taking a progressive approach to real estate insurance, taking full advantage of the internet and any tools at their disposal to get their members the support they need.
eXp Realty Policy Details
eXp offers a flat-rate real estate broker errors and omissions insurance policy to all of their members, charging them $40 per transaction with a maximum cost of $500 per year. However, you also have to pay for eXp membership if you want to take advantage of their insurance policies, which costs $85 per month, though membership offers additional bonuses.
Pros:
eXp membership comes with stock
Reasonable price
Charged per transaction
Cons:
Requires membership
Average cost: $40 per transaction
Best for: Extra benefits
Our Rating: 4.5/5
Rice Insurance specializes in E&O insurance for realtors, and they operate in the majority of states that require realtors to maintain active insurance. The company is supported by the Continental Casualty Company, which maintains an A.M. Best rating of A.
Rice Insurance Policy Details
Rice’s errors and omissions insurance for real estate agents depends on the state in which it is purchased. Since every one of these states has different requirements for realtor E&O coverage, the policy varies based on where you purchase it and it only applies in the state in which a realtor is licensed.
Pros:
Available in 12 out of 13 states where insurance is mandated
Pays out for legal fees and covered damages
Affordable
Cons:
Not a carrier itself
Average cost: $56 per month
Best for: Low real estate broker insurance cost
Our Rating: 4.3/5
Keller Williams has been in business since 1983, and it’s one of the largest real estate companies worldwide. Despite not being an insurance carrier, they work closely with Austin and Austin Insurance Services to ensure that every real estate agent that works with them has comprehensive real estate business insurance.
Keller Williams Policy Details
The realtor errors and omissions insurance policy from Keller Williams features a $2 million limit for each claim and a $2 million aggregate limit. In certain cases, there may even be a 50% deductible reduction, and legal fees are split 80/20.
Pros:
High limits
Affordable
Applies to residential and commercial sales
Cons:
Legal fee split
Average cost: $33 per month
Best for: Commercial real estate agents
Our Rating: 4.5/5
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John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children, and now have to get legal and BBB involved for a company to do the RIGHT thing. Scott Lewis, Kevin Ware, Heather White, and Ryan P, lied about communcation on my claim, demonstrated Bias by overpromising and under delivering . They refused to pay the full amount owed and have associates untrained in vehicle condition assessment and reconditioning. Also, not one GUARD insurance representative has contacted my wife (the injured party) in 4 months to follow up on medical treatment. STAY AWAY IF YOU ARE SHOPPING INSURANCE!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Had general liability and workers comp with amguard. Paid high premiums and yet still got audited every year and had to pay more. Was able to prove less risk the first two audits and disputed price down but none the less had to pay more just so I could renew coverage. Third time the audit ( based on what I paid my premium on ) was ridiculous and tried to prove that there was no increase in risk from what I paid for my premium. However they would not believe it and required I paid full audit amount in order to have redline removed. Basically you do what they say and pay whatever outlandish bill they come up with or they will make sure you can’t run your business anymore. ????
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!