Whether you’re a real estate agent or a real estate investor , the real estate industry can be a gateway to a huge amount of profit, but it can also expose you to a lot more risk than most other industries. This risk is typically financial, since there’s a relatively high chance of getting sued if something goes wrong.
Errors and omissions insurance real estate policies are going to be the focus of today’s article. We’re going to focus on what an E&O insurance real estate policy can do for you and your business and we’ll also look at the average real estate E&O insurance cost that professionals can expect to pay for coverage. Finally, we’ll explore some of the best real estate E&O insurance companies.
E and O insurance real estate policies are relatively common amongst real estate agents and investors. In fact, these policies are required by agents in nearly 15 states, so many of them don’t have a choice but to start paying for errors and omissions insurance for real estate agents.
Realtor errors and omissions insurance applies when you make a mistake while you’re dealing with a customer. If your negligence ends up causing damages to a client, then your E&O insurance policy will kick in and pay for the damages as well as any legal fees that resulted from the situation.
You’ll also have to consider the way you pay for your E&O insurance for real estate agents, since different companies have different billing methods. Cheap E&O insurance for real estate agents is usually sold per transaction instead of per month, ensuring that you only pay when you actually need the coverage.
This makes the most sense for real estate agents who are trying to save as much money as possible because you won’t need E&O coverage if you’re not making any deals. Another advantage to paying for E&O Insurance per transaction real estate is that there are limits per year, usually capped out at between $400 and $600.
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When considering the errors and omissions cost real estate policies, there are a few different factors that you and insurance carriers will have to account for. The most significant thing that will impact the cost of your E&O insurance is the number of transactions that you complete over the course of a year.
Real estate E & O insurance gets more expensive with each transaction because every one of them increases the chance of the insurance company having to pay out on your behalf. Since your insurance premiums are directly correlated with the risk of the insurer, higher risk usually means higher premiums.
| Company | Cost per month | Cost per year |
|---|---|---|
| eXp Realty | $85* | $1020** |
| Rice Insurance | $56 | $672 |
| Keller Williams | $33 | $396 |
Real estate appraiser E&O insurance is usually a little more affordable than E&O coverage for real estate agents, though once again, the cost of insurance will vary from person to person. The factors we mentioned above will also apply in these cases.
Real estate E&O insurance is available from a wide range of companies, and selecting the right one will ensure that you pay the best possible E&O insurance cost real estate. The right company will also ensure that you get quality customer service, which is essential when your business might be on the line.
RISC (Rice Insurance Services Center) is a company that specializes in mandated E&O insurance for real estate professionals. This means that the company only operates in states that require real estate agents to maintain an E&O policy so that they can legally practice.
Rice Insurance Policy Details
The Rice E&O policy is underwritten by Continental Casualty Company and it covers legal fees and damages related to mistakes and negligence on the part of the real estate professional. Keep in mind that Rice’s policies vary based on the state that you’re getting insured in since every state has different guidelines.
Pros:
Available in most states where E&O is required
Relatively affordable
Covers legal fees and damages
Cons:
Underwritten policies
Average cost: $56 per month
Best for: Smaller businesses
Our Rating: 4.5/5
eXp Realty works with residential real estate agents, and while they may not be an insurance carrier, they have underwritten E&O policies for all agents that are their members. One of the most notable things about eXp is that they aren’t afraid to embrace progress, taking advantage of the internet far more than their competitors.
eXp Realty Policy Details
eXp Realty offers the same rate for E&O coverage to all of their members, though you’ll also have to pay for the additional cost of membership. One thing to consider about eXp’s policies is that your rates are based on the number of transactions you undertake every year, with a maximum cost of $500 per year.
Pros:
Low price
Maximum limit of $500 per year
Additional benefits to membership
Cons:
You have to pay extra for membership
Average cost: $40 per transaction
Best for: Agents making fewer transactions
Our Rating: 4.3/5
Keller Williams is one of the largest real estate companies in the world, and they’ve been in business since 1983. Even though they’re not an insurance carrier themselves, Keller Williams has a partnership with Austin and Austin Insurance Services so that they can provide their members with E&O coverage.
Keller Williams Policy Details
Keller Williams has a specific real estate E&O insurance policy for their members, and they’re a little more transparent with what you get out of it than eXp or Rice. For example, the Keller Williams policy features a $2 million limit per occurrence and aggregate, though legal fees are split 80/20.
Pros:
$2 million limit
Good price
Applies to commercial sales too
Cons:
Doesn’t cover all legal fees
Average cost: $33 per month
Best for: Commercial real estate agents
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This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
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It really can't get any better than this... wow
Not all those who wander are lost.
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