As a real estate appraiser, your main job is to assist buyers and sellers in determining the true value of their property prior to purchasing it. While real estate appraising may sound like a fairly straightforward job, in reality, it comes with several significant risks. If you choose to take on this task, you must be aware of the risk and benefits inherent to the position.
Appraisals are performed on a regular basis for home sellers, especially as the housing market becomes more competitive. Many real estate agents, buyers, and other individuals involved in the home buying process will hire appraisers on a regular basis. The reason for this is to gain an objective and third party perspective on the property that can prove to be invaluable information regarding how much you should offer, what comparable properties are selling for, and whether or not you should expect to earn a profit. Without the right real estate appraiser insurance, these professionals can face serious legal problems if they are negligent in the performance of their duties.
There are several different types of coverage offered by insurance companies for real estate appraisers. The two most common forms are referred to as underwriter protection and warranty of appraisal cover. An underwriter protection plan typically pays the appraisers, allowing them to make a reasonable amount of money for their work. On the other hand, a warranty of appraisal cover plan covers the appraiser while he performs his job, providing coverage in the event that he makes an inaccurate or incomplete appraisal which gives rise to a lawsuit against the company. Both plans will pay the appraiser a predetermined amount in the event that they are found to be inaccurate and not current enough to allow you to sell the property.
For real estate appraisers who are not covered by these plans, they must rely on the revenue produced by their work to pay their bills. Some states even allow their workers to sue for damages if they are injured while on the job. However, not all states have this option, making it important to understand your rights and the responsibilities of having real estate appraisers perform their duties. In some cases, you may find that your company has inadequate insurance to cover your appraisals, causing your business to suffer financially. To learn more about the importance of real estate appraiser insurance, contact a qualified insurance provider today.
Many real estate appraisers decide to carry insurance because they are afraid that they might have to pay a large settlement if they are found liable in a lawsuit. It is important to note that this type of liability protection is not available from most lenders, which leaves them at risk without coverage. The only way to avoid having to pay out for damages if sued is to carry adequate and appropriate insurance. Many lenders’ policies also place limits on the amount of money that an individual can be held responsible for due to negligence. Having real estate appraiser insurance protects your company from having to pay thousands of dollars in lawsuits.
Instant Quote Appraisers provides free estimates on various types of insurance to real estate appraisers who want to protect their reputations and save themselves from potential financial hardship. Instant Quote Appraisers can be provided online twenty-four hours a day, seven days a week. If you have questions or need information regarding the policies, an insurance agent can contact you or provide an instant quote. This is a simple and affordable way to protect yourself and your company from liability, while also getting a number of quotations.