There is a belief that Real Estate is always a safe investment.
Let's take a closer look at why Realtor's today have more liability than every before.
Not only is the market hinged upon the housing market, employment and regional disasters but there are other things to consider too.
Before we move on let's look to see how the market can affect the industry. There are recessions, high interest rates, fluctuations in the marketplace, all which can affect your ability to buy and sell houses.
A Realtor must be careful what they say. Perhaps they tell a buyer their potential home is in a great neighborhood and that property values s will likely go up over the next decade. Then, the value of the home stalls due to unforeseen reasons. The Realtor could be sued in a professional liability lawsuit. This is what Errors and Omissions Insurance pays for when a client sues you over your work or inaccurate statements (unintentional) about the property.
Open houses can be chaotic and hard to keep track of families wandering through. You can't be everywhere. Your job as the Realtor is to be available. If an accident happens on your time, you could be sued. This is what General Liability Insurance is for. This can even cover the immediate cost to call an ambulance or get treatment for injured parties.
Code of Ethics Violations
If you violate professional standards, you could be fined by our local Real Estate Board and sued by clients. Make sure you are upfront with all clients, get Seller's Disclosure forms signed by all buyers and know your professional standards inside and out.
Scope of Work
Realtors need to be careful not to offer buys advice and services outside their scope of real estate.
There is so much to think about. That is why our team at All Access Insurance specializes in Professional Liability for Real Estate Agents.
Keeping you protected.
All Access Insurance in Littleton, CO, who represents multiple insurance companies as a “Broker” and provides products for auto, home, commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700.