A real estate appraiser determines the market value of commercial or residential real estate property. The job has its risks. You can get sued for inaccurate information or misrepresentation by the real estate investor. Property owners can also file a claim for violation of good faith. Last but not least, your employees can get hurt while visiting a real estate development project.Â
To protect your business, you must get a comprehensive real estate appraiser insurance policy. This article will detail some of the critical components and point you in the right direction to purchase a policy.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
Your real estate appraiser insurance package will not be complete without a general liability insurance policy. This policy protects your real estate appraising business from third-party property and injury claims. Example situations include:
A customer walks into your office but trips over some misplaced clutter and injurie their back
While assisting a representative from a company that has hired you, you accidentally damage some of their business property
Real estate appraisers will want to look out for helpful add-ons to their general liability insurance, such as:
Hired and non-owned auto–Covers vehicles the business does not directly own, like rentals, leases, and employee vehicles used for business purposes
Cyber liability–Provides coverage for your real estate appraising business in the event of a data breach or costly cyber attack that might harm your business or its customers
The coverage limits for real estate appraisers will generally be $1 million in occurrence and $2 million in aggregate for their general liability insurance.
General liability insurance does not cover all risks. Important exclusions to note are employee injury, auto liability and accidents, and damage to your property.
If you avoid purchasing general liability insurance, you could be hit by costly legal settlements, judgments, and lawyers' fees. Lawsuits covered by general liability insurance could potentially bankrupt your business.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Your real estate appraiser e&o insurance will cover incidents of negligence, mistakes, and oversights that can financially burden your business. Real estate appraiser errors and omissions insurance protects you from court fees, court judgments, lawsuit costs, and other related expenses. Some examples where errors and omissions insurance can help include:
You neglect to properly check if a piece of property meets safety regulations, causing injury to someone who moves in.
A mistake on a property fact sheet causes a client to lose out on an investment
Excess liability–Adds additional coverage to an already existing errors and omissions insurance policy that protects you against heavy losses in an unexpected situation
Media liability–Protects your business against potential liability claims that result from your business's published content in places like the internet, social media, and other sources
Real estate appraiser e and o insurance will have a coverage limit of $1 million in occurrence and $1 million in aggregate. If you need higher coverage, you should ask about higher limits. Some companies extend coverage up to $2 million-$4 million.
Yes, e and o insurance for real estate appraisers may not be legally required for your business, but you will need it. Since a real estate appraiser's judgments on a property can drastically affect its price, any mistakes can have the potential for massive financial damage.
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $320,000 | $25,000/$500,000 | $75,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $75,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Real estate appraiser commercial property insurance protects your commercial property against damage or destruction. Your business property and its contents get protected from natural events, theft, and vandalism. Examples include:
A thief breaks into your real estate appraiser business office and steals your electronics
A thunderstorm strikes your building and causes property damage that you need to repair
Equipment breakdown coverage–This protects your business equipment from internal physical damage resulting from incidents like mechanical breakdowns and power outages
Outdoor sign coverage–Protects your business signs, which exist outside of your business property, from physical damage
Commercial property insurance for real estate appraisers offers coverage limits between $20,000 and $60,000.Â
