I am shopping for new E&O Insurance and in doing so I find that the BPO's I do for properties that I am not currently offering to list or place under contract with a buyer are not covered under my regular Real Estate E&O which I have at a 1,000,000 level. In explaining to the new agent what I am wanting, the three quotes she has brought back to me all specifically state that the E&O DOES NOT cover BPO's performed for compensation. Can someone enlighten me or do I now have to bite the bullet and get the expensive insurance that I am being quoted? If so is this going to be a new industry wide problem for all of us?
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I just signed up with RESSI and my contact person there is Eric Cordova and his number is 321-283-0574 and his email address is ecordova@ressi.com. I received a decent quote and it too was under $1000 per year.
You may want to add property management to the policy. Techincally, if you conduct MSR and turn utilities on and off and perform small checks, you're in property management. I got this advice from a local real estate lawyer.
Check with your local Realtor assocation as well for insurance partners that can handle REO and related activities. Hopefully they can guide you to the right broker. If you're in California, I can refer you to my agent.
If you park your license with a broker, you are already paying for your current E& O insurance. Technically your broker can get a cut at it. Assuming they pay agent forty bucks a pop you may need to give your broker a cut.
If you do 50 comps a year that is just enough to pay for the additional trouble.
Perhaps you need to shop for a different arrangement or a new broker....
Do you foresee all of the companies then going to make sure we all have the same type of insurance? I can just see this making this business even tougher to make a living at. Oh well, the joys of wanting to be my own boss huh?
Thank you! Is there any one company over another that you like better?
Oh Beth....let me just say, I FEEL YOU SISTER! I just paide my annual premium and had a it of sticker shock....oh yes, it was more expensive than I have ever seen it and on top of that, I had to buy additional insurance just for "default properties" ie....BPO's, REO's, Short Sales, Loan Mod's, you name it....and, it was evern more expensive.
I think the insurance companies are making the rest of us pay for the mistakes of all those who don't know what they are doing.
Replies
I just signed up with RESSI and my contact person there is Eric Cordova and his number is 321-283-0574 and his email address is ecordova@ressi.com. I received a decent quote and it too was under $1000 per year.
Check with your local Realtor assocation as well for insurance partners that can handle REO and related activities. Hopefully they can guide you to the right broker. If you're in California, I can refer you to my agent.
If you do 50 comps a year that is just enough to pay for the additional trouble.
Perhaps you need to shop for a different arrangement or a new broker....
Thank you! Is there any one company over another that you like better?
I think the insurance companies are making the rest of us pay for the mistakes of all those who don't know what they are doing.
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