IT'S SURVEY TIME AGAIN

Be heard. We are listening.

HVCC had a huge impact on the appraisal profession. What do you want IVPI to do? Is your business up, down or sideways? Tell us what issues you believe will have the greatest impact on the appraisal profession going forward. We give you plenty of opportunity to vent.

Take the survey and enter to
WIN a FREE Valuation 2010 Trade Show Pass.
(We will give a free pass away each week for the next 4 weeks.)  

Fred W Holtsberry of Mid-Ohio Appraisal Services in Columbus, OH has won a free pass to Valuation 2010. Three more winners will be announced in the upcoming weeks. Don't forget to fill out the survey!

Founded in 1949, The Herbert H. Landy Insurance Agency has been providing professionals with insurance for more than 60 years.

The Herbert H. Landy Insurance Agency is proud to be affiliated with professional appraiser and real estate associations across the nation. As the National Administrator for an A++ (AM Best) rated Insurance Company, we offer an exceptional combination of coverage options, competitive pricing and a level of experience and service ot often matched in the insurance industry today.

Our sixty years of success is the direct result of a clear focus on customer service and knowledge of both nsurance products and the issues that affect our clients in the real world.

Errors and omissions insurance plays a critical role in the business plan for all Appraisers. The particular nature of real estate transactions, where multiple professionals are involved in the facilitation of the sale, increase the possibility of the Appraiser being brought into a suit for actions of other parties. Having the right type of insurance and understanding how they are protected is one of the most important business decisions a real state appriaser can make this year.

The many consequences from the economic downturn have impacted all aspects of the real estate profession. Real Estate Appraisers are experiencing significant changes in how they conduct business. New (and constantly evolving) regulations from the FHA, HVCC guidelines and the changing relationships with appraisal management ompanies are forcing Real Estate Appraisers to reevaluate ways to successfully operate their businesses.

Significant increases in claims activity have resulted in some insurance companies dropping this line of coverage altogether. New Underwriting guidelines and premium increases introduced by many insurance companies have ade it more difficult for some Appraisers to obtain quality insurance coverage.

While we acknowledge these realities, the Herbert H. Landy Insurance Agency is pleased to note our continued support of Real Estate Appraisers throughout the United States. As we celebrate our 60th year, we reaffirm our commitment to providing high quality, cost-effective errors and omissions insurance to Appraisers and all Real state professionals.

Most Errors & Omissions insurance polices are provided using a “Claims Made and Reported” Policy form. A claims-made insurance policy provides protection for covered claims that arise during the current policy year prompted by services provided any time AFTER the prior acts date.

The prior acts date is shown on the first page of the policy. If a claim arises from services provided before that ate, it will not be covered. Your prior acts date should not change when you renew or replace your coverage.

The current policy year is the effective date and expiration date shown on the first page of your policy. These dates change each year when you renew your policy.

Policy Limits are shown on the declaration page of the policy. Example: $250,000 / $750,000. The first amount is the most that can be paid for a single claim in a policy year. The second amount is the most that can be paid for all claims during the current policy year. The cost of defending the claim is usually included within these limits. However, you may be given the option, at the time that you apply for insurance, of whether you want efense costs provided in addition to your policy limits.

What Policy limit should I have? We suggest you check with any lenders you do work as many lenders have minimum limit requirements of at least $500,000/$1,000,000. You should also discuss this important decision ith your Accountant and other advisors.

Observation: Because a Claims-Made policy protects you for covered claims presented during the current policy year - regardless of when the incident that prompted the claim occurred (providing it was after the prior acts date shown on your policy) you could have a problem when several claims are presented during a single policy year nd your total policy limits for that year prove to be inadequate, or your single claim limit is not enough.

Leverage Your Protection: Increasing your policy limits has a positive impact beyond the current policy year. When you increase your limits today, the new limits may stretch back in time beyond the current policy year because they apply to services you have provided since your prior acts date. Check with your current insurance company to confirm this benefit.

Why is this a good idea? It is distinctly possible - because of the way claims-made coverage works - that incidents from a number of years of practice could give rise to claims during the same coverage year, straining even substantial limits. It makes sense to take advantage of both the leverage and the cost-effectiveness of higher limits.

The definition of “who is an insured under the policy” is critical and not as obvious as it seems. A business may be organized as a sole proprietorship, LLC or S-Corporation. It is important to discuss with your insurance epresentative the details of your business structure and how to properly insure it.

If subcontractors are used, are they listed in the definition of who is an Insured?

The definition of “Professional Services” also requires scrutiny. That definition should accurately reflect what services a business performs. If an Appraiser provides services outside of that definition, coverage may not be rovided under the definition of professional services..

Another section of the policy is the Exclusions section, which outlines specifically what is not covered under the insurance policy. For example, some policies may exclude commercial real estate appraisals, new construction r claims brought by financial institutions.

These issues clearly require more elaboration beyond the scope of this article. The professionals at the Herbert H Landy Insurance Agency are happy to share their knowledge and expertise to assist you with securing coverage that fits your needs, so take a moment to review your errors and omissions policy with us. We offer coverage for individual Appraisers and for firms of all sizes. We stand by our commitment to the Appraisal industry, our professional affiliations and our clients, and look forward to the next sixty years!

Please contact us 1-800-336-5422. ext 142, or visit our website at www.landy.com