Real Estate Appraisal E&O Insurance

Please check the states listed below for eligibility requirements.

Colorado – Appraiser License Only

Colorado law requires real estate appraisers to carry E&O insurance. We provide the Colorado state group appraisal E&O program, which exceeds the state’s minimum requirements. The group policy is guarantee-issue if you have an active real estate appraiser license, so you don’t have to worry about qualifying for enrollment if you have had a claim.

The group policy provides endorsements for increased limits of liability and appraiser trainees.

Appraiser License AND Real Estate Broker License

Active Colorado real estate appraisers who also have an active real estate broker license may also comply with state coverage requirements by purchasing insurance though our group real estate E&O program and adding an appraisal endorsement. The appraisal endorsement expands the definition of professional services to apply to services as a licensed or credentialed real estate appraiser. If you have appraiser trainees, you may want to consider the Appraiser Group Program, as it offers an optional endorsement to add specific appraiser trainees to the definition of insured.

Nebraska – You must have an active Nebraska real estate broker or salesperson license to purchase insurance through the group policy. The professional services insured by our Nebraska group real estate E&O policy automatically include the insured licensee’s services as an appraiser, provided the licensee has the proper credentials required by state law as a trainee, registered, licensed, certified residential, or certified general appraiser.

Colorado, Iowa, Idaho, Kentucky, Louisiana, Mississippi, New Mexico, North Dakota, Rhode Island, South Dakota, and Tennessee – Individuals with both (1) an active real estate license and (2) an active appraisal license/credential may purchase an appraisal endorsement in addition to purchasing insurance for real estate services under our real estate E&O policy. The appraisal endorsement expands the definition of professional services to apply to services as a licensed or credentialed real estate appraiser. Appraisal endorsement premiums vary by state.

Benefits – Many appraisal clients will only work with appraisers who have E&O insurance. Additionally, anyone may be the victim of a frivolous lawsuit or make an honest mistake without regard to knowledge and years of experience, doing everything by the book, or going the extra mile for their clients. Even if the insured did nothing wrong and the lawsuit is ultimately dismissed, legal expenses often reach tens of thousands of dollars and sometimes more. Defense cost coverage is one of the biggest benefits of our policies. There is no cap on the amount of defense costs the carrier will pay for claims insured under the basic limits of liability. For example, if it costs $150,000 in legal fees to defend a covered lawsuit, these fees would be paid by the insurance carrier and would not reduce the amount of funds available to pay damages. Note that in some states there may be sublimits for claims not traditionally covered by E&O policies that limit defense costs. In addition to defense costs, the insurance carrier will pay covered damages when an honest mistake in your real estate services results in a covered claim.

The program referenced herein is underwritten by Continental Casualty Company, a CNA insurance company. This information is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the products and services offered. Only the applicable policy can provide the actual terms, coverages, amounts, conditions, and exclusions, which may be subject to change without notice. In the event of a claim, the nature and extent of coverage is determined based upon the claim’s facts, circumstances, and allegations and application of the relevant policy’s terms, conditions, and exclusions. The E&O program described herein is only available in certain states. CNA is a registered trademark of CNA Financial Corporation. Copyright ©  CNA. All rights reserved.