As a Realtor, Janice got the biggest kick out of telling her clients the ultimate phrase “you got the house!” even after 15 years of being in the business. She had successfully navigated through the hot-market times as well as the housing bust, and managed to put her clients in literally hundreds of home sweet homes over the years. Despite her experience and success, though, Janice appreciated the fact that her professional insurance agent had for years included real estate liability insurance in Janice’s comprehensive business coverage program for many reasons.
When Clients Aren’t Happy, They Sue
That’s how Janice was able to weather the incident her colleagues later referred to as “Johnsongate” with nary a bobble in her financial record. The Johnsons had hopped from one Realtor to another in quick succession, always finding fault in one thing or another: not enough homes presented by Number 1, too many homes shown by Number 2, inability to negotiate what they felt was a fair price for a home with Number 3, and so on. By the time they got to Janice, she was fully aware of their reputation for being difficult but she felt she was up to the challenge, and wouldn’t you know it-just three weeks after representing them, Janice found the perfect house for the Johnsons. A deal was quickly inked even before the home inspection was completed, the couple was that anxious to seal the deal and beat out three other families that were vying for the property. However, a report on previous water intrusion came in and the Johnsons shortly thereafter pulled out, paying a penalty to do so. Now they are suing Janice, accusing her of making errors in the deal struck for the property and seeking reimbursement for the many thousands it cost them to walk away from escrow.
Fortunately, Janice’s policy will step right in, paying for the legal fees and court costs associated with the claim, even the judgment should the court find in favor of the plaintiff. Otherwise, she would have to pay for all of these expenses out of her own pocket, which could devastate her financially. What’s more, had she not purchased the coverage, Janice’s agency (leery themselves of any liability entanglements that could ensnare them) would not allow her to affiliate with their group. To prevent your own Johnsongate from hampering your ability to thrive in your chosen field, talk to your professional insurance agent about real estate liability insurance today.