A real estate agent often has multiple properties in their pipeline at any given time, which can lend itself to errors now and again. Even with the most diligent and detailed oriented Realtor, there can be occasions where oversights are made and mistakes come into play. For this reason, real estate liability insurance is a must have for both big and small players in the industry to ensure you are properly covered and your business can survive any legal allegations.
Many times, clients file claims against agents as a result of a perceived failure to disclose information. This can include past or current problems such as:
- Termite issues
- Mold and/or water damage
- Structural issues
Sometimes, however, the issue is less about the actual home and more about information that affects the client in their daily life. For instance, this can include having a crime committed on the property or in the home, which can cause emotional distress. It can also result from being in an unexpected school district, as well as finding out there is a lien on the property. Real estate liability insurance can protect you during the court proceedings whether you are at fault or in the clear. This is important as, either way, legal bills can quickly add up and are unlikely to be recouped otherwise. It can also assist you with legal representation and in the case of legal payouts.
Having real estate liability insurance can create a safety net for you and your business. It can protect you from mistakes that are bound to occur occasionally as well as unfounded accusations.