Even Real Estate Pros Need Errors and Omissions Coverage

Even Real Estate Pros Need Errors and Omissions Coverage

Estelle wasn’t just a good performer in her agency, she was legendary for finding the right house for her clients, no matter how particular they were. The double-income, no kids couple from Jersey looking to move up to a statement house; the empty nesters who wanted to downsize to a cozy cottage–whatever the criteria, Estelle was on the job. However, even the pros can have an off day, so when Estelle got word that she was on the receiving end of a lawsuit alleging she had made a grave mistake, she was understandably upset yet relieved she had purchased errors and omissions for real estate agents thanks to the good advice of her professional insurance agent. This coverage can be a lifesaver in the event one you are found responsible for causing financial loss to someone due to your negligence, errors, omissions, or otherwise failure to provide the professional services that you were hired to perform.

The unhappy couple with an axe to grind

Estelle remembered the couple well–she’d shown them no less than 53 different homes with the couple arguing all the way until they finally, grudgingly settled on an elegant penthouse condominium. Estelle worked overtime to close the deal, as the couple wanted every concession imaginable, and finally was able to get the sale at slightly under market value, a real coup for the buyers considering the desirable area. A problem arose shortly after the sale, though–apparently an assessment was to be levied by the homeowner’s association on all the units to the tune of several thousand dollars apiece, and Estelle had failed to notify her buyers of this; somehow, that bit of critical (and expensive) information had slipped through the cracks in all of the back and forth haggling. The buyers were livid, and were insistent on suing Estelle for the costly error to cover their out-of-pocket expenses to pay the assessment as well as additional fees for their inconvenience. Fortunately, the policy she had purchased enabled her to put the whole mess behind her without her having to pay anything more than a small deductible.

Contact your professional insurance agent to learn how errors and omissions for real estate agents can be a real cornerstone of coverage for your business, because everyone can make a mistake–just ask Estelle!

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