Real estate appraisers provide an objective estimate of the market value of properties. Therefore, their jobs come with a lot of risk and responsibility. Thankfully, real estate appraiser insurance exists to protect you from the financial ramifications of being an appraiser and operating an appraisal business. Keep reading to learn more about how ALIGNED can help you find a dynamic policy tailor-made to your business’s needs.
What is a real estate appraiser?
A real estate appraiser is someone who performs a detailed analysis of a property to determine its market value. Appraisers strive to provide an objective, unbiased appraisal based on ample research and an in-person inspection. An appraisal is a process by which a professional property appraiser determines the value of a property. Appraisals are useful in many circumstances and are sometimes required, such as by a mortgage lender or other related financing.
A typical home appraisal begins with an appraiser visiting the property. They spend roughly one to two hours inspecting its interior and exterior, which may include measuring the property’s square footage and assessing the amenities and fixtures of the home, as well as its floor plan functionality and the number of bedrooms and bathrooms. An appraiser may also do independent research so that they can compare the property to other comparable properties in the area. All of this information will then be compiled into the appraisal report, which will be delivered to all relevant parties within a few days of the inspection.
What does real estate appraiser insurance cover?
Real estate appraiser insurance policies vary but may feature the following coverage:
- Professional liability coverage: Professional liability coverage, also known as errors and omissions insurance, protects your real estate appraisal business against the cost of a lawsuit alleging error, misconduct, misrepresentation, or failure to deliver a service as promised. This could be especially useful if one of your appraisers is ever accused of negligence, making a mistake or breach of confidentiality.
- Commercial general liability insurance: Commercial general liability insurance, also known as slip and fall insurance, is important for all businesses, including real estate appraisers, as it can protect them against third party bodily injury or property damage claims. For example, if a client visits your office and slips and falls on an icy walkway leading up to the front door, they could sue you. Luckily, thanks to commercial general liability insurance, your insurer might cover any legal fees and medical expenses up to the policy limit.
- Commercial property insurance: Commercial property insurance protects your real estate appraisal office and any business-related contents from damage caused by an insured peril. It is up to each policyholder to decide which perils to include with their policies. Perils may range from fire and theft to water damage, windstorms, vandalism, and more.
- Cyber liability insurance: Cyber liability insurance can help protect your real estate appraisal business if you store sensitive information, such as clients’ financial or personal information, online. Specifically, this type of coverage aims to safeguard businesses from the financial fallout of cyberattacks, hacks, data breaches, and more. This type of insurance will cover the cost of damages and legal fees, which may include credit monitoring, client notification, etc.
Cost breakdown of real estate appraiser insurance
If you’re interested in buying commercial insurance for your real estate appraisal office, then you might be wondering how much it costs. Ultimately, the cost of any insurance policy depends as insurance providers use many factors to calculate insurance premiums. In the case of a real estate appraiser, such factors may include the location of your office, the number of people you employ, and your years of experience or training in the field. We break down a few of the top factors influencing the cost of real estate appraiser insurance below:
- The location of your real estate appraisal business
- The services your real estate appraisal business offers ex. commercial vs. residential etc.
- The number of employees you have
- Your insurance claims history
- Your certifications, training, and experience in the field
- Your real estate appraisal business’s annual and projected gross revenue
- The coverage types, policy limits, and policy deductibles you choose
Given that insurance companies use many factors to calculate premiums, the cost of real estate appraiser insurance varies widely. For this reason, we suggest contacting a reliable insurance broker at ALIGNED to learn more about how commercial insurance premiums are calculated. One of our knowledgeable and friendly brokers will take the time to explain each of the factors that insurance companies consider and can even provide you with an accurate and competitive quote. This way, you can get a better idea of how much real estate appraiser insurance will cost your business.
Finally, it is important to note that although insurance brokers at ALIGNED can help you find real estate appraiser insurance policies at affordable prices and even unlock discounts on your behalf, we do not set premiums. Rather, insurance premiums are set directly by insurance companies. That said, an insurance broker at ALIGNED can still help you shop around for insurance and compare rates on your behalf to make sure you get the best coverage at the lowest price.
What is the best way to purchase real estate appraiser insurance?
There are two ways to purchase real estate appraiser insurance. The first is to contact an insurance company directly and the second is to work with a broker. While both have their pros and cons, buying insurance through a broker is generally considered the most convenient option, as brokers do the work for you. For example, when you contact ALIGNED about finding an insurance policy for your real estate appraisal business, we will ask you a few questions to better understand your needs. But from there, you can sit back and relax, while we do all the heavy lifting. We will reach out to top insurance companies, obtain quotes, compare policies, unlock discounts, and present you with several options. All you have to do is choose the one that best suits your needs.
ALIGN your real estate appraisal business with comprehensive commercial insurance
Ready to purchase commercial insurance for your real estate appraisal business? Get in touch with ALIGNED today. One of our experienced brokers will be happy to answer your questions and explain all the ways that real estate appraiser insurance can benefit you. You can also get started now by clicking here for a free quote.