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>> Editor’s Note: To help you stay up-to-date and connected, OREP/Working RE has established a Coronavirus (COVID-19) Discussion and Resource Page where you can share your thoughts, experiences, advice and challenges with fellow appraisers. Share information here!
Financial Relief Extends to E&O Insurance
By David Brauner, Senior Broker at OREP E&O
E&O insurance is your financial hazmat suit. It’s your protection. New rules from OREP’s flagship E&O carrier make it easy for you to keep your protection in place, despite uncertain times. Similar help may be available from your carrier if you’re not with OREP.
I’ve been helping real estate appraisers with their E&O over 25 years- the last 18 years at OREP. I can talk about a lot of things but I’m only expert in one: E&O Insurance. I can tell you that your E&O policy is almost certainly Claims Made, and if you let it lapse to conserve money now, you’ll lose coverage for past appraisals, which could cost you big in the future. Here’s one of many stories that explain it: Click here to read more about Claims Made policies.
The bottom line is that you may not need E&O now because you’re not working now or working less, but if you let your policy lapse you are exposing yourself to risk because coverage for past appraisals will be gone. Every Claims Made policy works the same way, no matter who you are insured with.
If your E&O renewal with OREP or with any other carrier is coming due (or you want to purchase a new policy) you can conserve cash by financing, first of all.
The big news is that OREP’s flagship carrier, in response to the pandemic, will defer cancellations for nonpayment if necessary for 60 days (not all carriers, please ask your OREP agent for details). This means that if you need to miss a monthly payment, after making the down payment, you will not be cancelled for 60 days. This is not payment forgiveness: payments will have to be caught up after 60 days.
A full 42% of appraisers responding to the OREP/Working RE Magazine Corona Virus Survey say business is down at least 20%. You may be in the group whose business is suffering. If you are trying to limit expenses, you don’t need to expose yourself to unnecessary financial risk. Keep your insurance in place. Ask your insurance agent if they have a similar program or call OREP. You can get quoted online in minutes here.
OREP E&O: Quote/bind online in minutes- Members enjoy FREE CE.
Click here to read the full release: Valuation Practices during COVID-19
>> Join the Discussion at OREP/Working RE’s Coronavirus (COVID-19) Discussion and Resource Page where you can share your thoughts, experiences, advice and challenges with fellow appraisers. See what Appraisers are saying here!
>> “Coronavirus State of the Appraisal Industry” Survey. How’s it going?
About the Author
Isaac Peck is the Editor of Working RE magazine and the Vice President of Marketing and Operations at OREP.org, a leading provider of E&O insurance for appraisers, inspectors and other real estate professionals in 50 states. He received his master’s degree in accounting at San Diego State University. He can be contacted at firstname.lastname@example.org or (888) 347-5273.
Richard Hagar, SRA, is an educator, author and owner of a busy appraisal office in the state of Washington. Hagar now offers his legendary adjustments course for CE credit in over 40 states through OREPEducation.org. The new 7-hour online CE course Identifying and Correcting Persistent Appraisal Failures shows appraisers how to avoid CU’s red flags, minimize callbacks, save time, and earn more! Learn how to improve the quality of your reports and build defensible reports! OREP insureds save on this approved coursework. Sign up today at www.OREPEducation.org.
Sign Up Now! $119 (7 Hrs)
OREP Insured’s Price: $99
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