South France Immobilier Property & Luxury French Real Estate by RHF International

Mistakes are all too common in real estate transactions, but if it is the home appraiser making the mistake, the result could be costly. It could cost thousands of dollars and even fall on the buyers or sellers. To the relief of the homeowner, they can make the appraiser pay for the mistake if they can prove it was his fault.

For an appraiser to protect himself from mistakes that will surely be made, errors and omissions insurance is necessary. Should the appraiser make a serious error, this insurance will prevent possibly disastrous consequences.

While we all will make the occasional mistake, home appraisers should be especially aware of how much their mistakes can potentially cost themselves and others. This is why an appraiser cannot afford not to have errors and omissions insurance for their business. A good insurance policy will include unlimited appraisals, and commercial and residential properties. It is critical to understand what your E&O insurance will and will not cover.

No one wants to have a lawsuit filed against them, no matter what their business happens to be. However, not everyone has the option of carrying insurance to protect them from mistakes.

Appraisers are very fortunate though, that they have the option of protective errors and omissions insurance. A lot of mortgage companies make it mandatory that any independent appraisers they use have insurance to protect themselves from mistakes of appraisers.

It can be very rewarding to be a home appraiser, but without errors and omission insurance, you may be faced with paying so much money out of pocket that you won’t have a sustainable business. It’s true that you have to pay a deductible if you are sued for an appraisal error, but it pales in comparison to the amount due if you paid for it all out of pocket.

It is critical to protect your appraisal business by buying the best kind of insurance to guard against your mistakes or what others accuse you of being your mistakes. Your business will benefit greatly.