Real Estate Appraisers E&O

Real Estate Appraisers E&O

RPS offers a quick and easy rate, quote and bind online process featuring an A.M. Best A-rated (Excellent), Financial Class XI company. With a simple seven-question application process, this product which offers limits up to $1M each claim/$2M aggregate and provides your clients with the protection they need to safeguard their businesses.

Product & Coverage

Residential and commercial appraisals

Reimbursement for security incident expenses up to $25K per incident/$50K per policy

Reimbursement of expenses for loss of earnings at attendance of trial or hearing includes $500 per day/$7,500 per claim/$25,000 per policy period

Reimbursement of expenses for disciplinary action defense includes $2,000 per claim/$25,000 per policy

Subpoena expenses are $5,000 per event

Damages includes punitive or exemplary awards (if insurable under state law)

$100,000 discrimination coverage

Reputation protection expense up to $5,000 per policy

Expert witness and notary public coverage

Deductible reduction incentive for early claims resolution

Target Classes

Individual residential, commercial real estate appraisers and individual trainees.

Restrictions

AK, CA, FL, HI, LA, MA, NY, TX, WA

Did You Know?

Rates are as low as $501 in most states Limit options range from $300K/$600K to $1M/$2M An appraiser trainee extension (defense only) is available to certified appraisers up to a $15K sublimit/$2,500 deductible Customizable quote allows for Appraiser Management Company (AMC) named as insured for for a 10% surcharge

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MC_0000614A

Claims Scenarios

The appraiser measures the square footage of a residence incorrectly and unintentionally overvalues the property by $80,000. The lender then approves a

1 mortgage based on the value appraised.

Years later the borrower defaults and the lender discovers the square footage originally reported was incorrect and sues the appraiser for the difference in value.

An appraiser provides the boundaries

of a plot to their trainee and asks

the trainee to prepare an appraisal

2

report on the subject property within a neighborhood. The trainee provides the

incorrect delineation due to a number of

typographical errors in the measurements

which the appraiser fails to notice. These

numbers are mistakenly provided as being

accurate, and the appraiser significantly

under-values the property. The bank does

not approve the loan to the buyer, and

the property is sold to another party. The

seller then offers a similar property they

have for sale, but at a higher value. The

buyer sues the appraiser for negligence

and for the difference in sale price of the

two properties.

An appraiser fails to mention ongoing construction of a major highway near the subject commercial property. A year after the property sold, the buyer

3 claims the newly finished construction

has significantly diminished its value as potential customers no longer have direct access to their location. The buyer sues the appraiser for the difference in property value and loss of business income, demanding $500,000, by alleging they failed to adjust for the apparent construction.

A complaint is filed against an appraiser

with the state. An investigation of the

appraiser's files show comparable sales

4

were stated in the appraisal report. However, the state auditor finds the file

does not meet USPAP requirements, and

is missing the documentation necessary

to substantiate how he/she reached the

final value. The state fines the appraiser

$6,000 and orders additional CE

courses to be taken.

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MC_0000614A

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