Errors and Omissions Insurance

 

Many appraisers carry errors and omissions insurance to protect themselves from claims that allege negligence in the development of an appraisal report completed for a client.  The insurance covers the appraiser from the economic losses suffered by a client due to errors or omissions made during the appraisal process.  An example of an error made by an appraiser could be with regard to the appraised property's size, zoning, construction or some other factual information important to its value.  At times, especially with regard to vacant land, appraisers value the wrong property.  Appraisers will usually appraise the correct property or refund the fee if this rare situation occurs.

 

The best way to make sure that the appraiser knows which property that you want appraised is to supply copies of tax statements, deeds, a title policy or other documents with descriptive information.  It is also important to sign an engagement letter with them that spells out information about the property including; address, assessor's parcel number and legal description.      

 

Consumers should be aware and know whether or not the appraiser they are doing business with is covered by an errors and omissions policy.  Most appraisers will readily disclose, if asked, prior to accepting an appraisal assignment whether or not they are covered.  Government agencies and others always request information on insurance policy coverage prior to contracting for appraisal services.

 

At times, appraised values to not meet with the expectations of clients who order them.  Legally, appraisers can not guarantee a value, or a value range, before they complete an analysis.  If an appraisal report is properly completed using all of the accepted methodologies and the appraiser expresses a value opinion below the client expectations, that is not good cause for a complaint or from a claim on an errors and omissions insurance policy.     

 

Contact us with your questions or concerns regarding errors and omissions insurance or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

 


                                                     



Copyright 2007 Horizon Village Realty & Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.