NEXT’s real estate E&O policy covers residential and commercial transactions and includes a variety of covered professional services, such as real estate sales, property management and appraisals.
There are several ways E&O insurance can help real estate agents, including helping to cover expenses related to court costs, lawyer fees and any judgments or settlements against you.
Making a mistake that affects a sale
For example, if a problem with a house is discovered after negotiations have begun, you could be accused of not disclosing that information.
If your client decides to sue you, your real estate E&O coverage could help pay for related expenses.
Not fulfilling promises
For example, if a buyer believes that you didn’t negotiate a low enough price on a house and they decide to sue.
Or if a buyer misinterprets your advice about having to cover closing costs and they end up with unexpected fees.
Accusations of indifference or neglect
For example, you may be called negligent if you fail to provide a client with all the necessary paperwork they need to make an informed decision.
Or if there is a zoning issue on a piece of property you didn’t know about, your client could claim you should have done your due diligence to find out that information before it was too late.
E&O coverage can also help pay for legal costs related to defending yourself in a disciplinary hearing if a complaint is filed against you.