Being a Realtor? Questions about insurance start up costs?

Question

-About how much is E&O insurance? I know it varies, but give me an nationwide average for a part-time real estate agent.

-How much E&O coverage does a part-timer have to carry?

-What about business car insurance? About how much should a part-timer have to carry in liability coverage?

Thanks for the advice.

Actually, There is part-time E&O, at least for one profession that I know of. While your logic would lead you to conclude that even one lawsuit can cause a problem, the part-time E&O is based on the insurance company's concept that the person practicing their art less often, has less claims made against them. Don't ask me why, but that's how they work it.

Answer 1

Hmm I have never seen a $200 per year E&O coverage. I should say your insurance will cost 1500-2000 a year and the limits that you should carry should be at least 1,000,000

Answer 2

E&O is not based upon part time or full time, since any ONE error can cost the insurer a payout. In my area, E&O runs about $200 per year. Try to find E&O with a 'no deductible' clause for loss payout. Experience has shown me that, if you have a $1,000 deductible per occurrence, the E&O carrier will immediately attempt to settle any claim for (SHOCK) $1,000. Of course, YOU get to write a check for that $1,000. The only way to have the E&O carrier fight on your behalf is to have a zero deductible. Even though it costs a bit more, it's not more than a 25-30% premium increase.

You should contact your insurance carrier relative to car insurance needs. My insurer simply uprates me based upon the number of actual miles driven per year. Your liability coverage need not change drastically over what you have now, since liability for any accident does not change based upon your usage of the car.

As a helpful comfort zone, consider taking out a $1 million 'umbrella' policy', which will increase your liability limits for less than $200 year.