Real Estate Agent Insurance: What You Need for Protection
In the United State, there are about 1.36 million licensed real estate agents.
Every real estate agent has a different working style, specialty, and clientele. However, every real estate agent needs coverage.
If you’re in the real estate business, it’s important you learn what you need to stay protected.
Read on to learn the types of real estate agent insurance you need.
1. General Liability Insurance
As a realtor, you might spend a lot of time on the road showing houses to your clients. However, there will be instances when clients visit your office.
General liability insurance covers you against claims that result from an injury or damage to another person or their property. For example, if one of your clients visits your office and they fall over a loose tile, they could sue you later one for their injuries.
Having general liability insurance will provide you with the coverage so you can protect yourself. General liability insurance also covers advertising claims such as slander and advertising claims.
2. Professional Liability Insurance
When you’re a real estate agent, you help people buy the home of their dreams every day, and they depend on your advice to make a decision. After all, they are making a big investment. Learn about these investments and how to protect them.
Unfortunately having that responsibility, also makes you more vulnerable to lawsuits. After all, real estate agents, even the best, can make mistakes or overlook a detail every once in a while.
Also known as errors and omissions, professional liability insurance protects you against several claims. The reason can include and are not limited to negligence, failure to disclose important detail or the delay or cancellation of a sale due to your mistake.
If you get sued due to any of those reasons, the litigation costs and real estate attorney fees could be too much for your business to handle.
3. Car Insurance
If you’re like most real estate agents, you use your car to go on showings.
Since you’re using your car to conduct business, you need the type of car insurance that will protect you in case of an accident while you’re on the job.
Make sure you disclose to your car insurance company you use your car for business so they can give you the appropriate policy.
4. Business Owner Policy
Business owner policies protect all of your office equipment such as printers, furniture, computers and more. You need all of these things to successfully conduct business so you need to protect it.
5. Umbrella Coverage
Even if you have liability insurance, it might not be enough to protect you in case of a lawsuit.
If your coverage caps out at $1 million but you get sued for $2 million, where would you get the rest?
Umbrella coverage is a supplemental policy that covers the rest.
Real Estate Agent Insurance: The Bottom Line
Real estate agent insurance is a must for all agents. Insurance can protect you against general liabilities, professional mistake claims, and more.
Wondering whether it’s a good idea to hire a real estate attorney? Check out this article.