Nearly every profession can be affected by errors and omissions lawsuits. Real estate is no exception. Real estate liability insurance is critically important for all real estate agents. This type of insurance can keep your business afloat in the event of a costly lawsuit. Here are a few things that this policy can cover.
Failure to Inspect Property
Property inspections are a very important part of both buying and selling a home. If your clients are interested in buying a home and you fail to have it inspected properly, that could result in a lawsuit. Similarly, if you have it inspected but fail to divulge anything you found out during the inspection, you could be held liable for that error.
Failure to Recommend Fair Price
Pricing can be variable. People tend to differ on what they think homes and properties are worth. If your client believes you recommended an unreasonable or unfair price for the home they were buying or selling, that could result in a legal situation. If such a case were successful, your insurance would cover the cost of the settlement, as well as possible legal fees.
These are only a few of the situations that can lead to a lawsuit. Plus, it is also possible for clients to levy unfounded allegations at you. For these reasons, it is incredibly important that you protect yourself with real estate liability insurance.