For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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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Terrible customer service. I got this insurance for my Amazon store when I ran one, took a break and cancelled all my subscriptions. I called these guys and they recommended sending an email. They never responded and have been charging me since then. Definitely going to dispute via the bank. Hate when businesses take advantage of other small businesses for their own gain.
I purchased a year long policy for my small business I paid for the year up front. First they sent me the incorrect paperwork and acted as if I had something to do with the mistake. About three weeks later I received a bill for the policy. I then sent countless email as the payment did clear my account. About a week later I'm told they have no record of my payment. Now I have to send any documents proving I said then. It went on for weeks. More requests of proof from this person then another. Every conversation had an under lying tone of me being dishonest. Finally I just gave up with them and filed a despite with my bank which took all of three days.. So now I'm continuing to receive emails that my policy is past due and will be cancelled. Funny, I was told I didn't have a policy because they couldn't locate it.
Purchased the General Liability policy I needed to fulfill a contract for my hiring party. Simply Business made it very easy to complete an application and review multiple quote options. Ended up purchasing a policy for 1/2 of what I originally was told by my agent.
I insured my small business with them from early 2016 to January 2022. I had a workman's compensation policy with them the entire time for my staff of approximately 10 people which fluctuated up and down minimally over the years. We ran a very safe operation and never had so much as one claim. I sold my business in early 2022 and cancelled my policy which triggered a final audit of $2871.00 which was owed back to me. Of course I dissolved my LLC immediately after selling the business and thus closed my bank checking account at the advise of my accountant. Though my name was on the business policy, Employers Preferred Insurance Company refused to issue a check to me directly as the policy holder due to...you guessed it, policy. Long story short, if you sell your business keep a small amount deposited in the checking account because it's almost a guarantee that companies such as Employers will use their policy to weasel their way out of money owed after the dissolution of a business. I should have known that I would be treated a just another number shortly after I signed with them as the sales agent just disappeared after I was set up for an online account to manage my policy. My next business venture will entail me working with an actual insurance agent who has an office in an actual brick and mortar building!
Long term insurance claim denied for my mother after 31 years of paying. Please never give this company a dime. You will not get your money back!