Real Estate Agents Are Selling, and You Can Too!
Do you need another room for a home office? Are you worried about contracting COVID-19 in a highly populated city? During the pandemic, nearly 16 million people have moved to accommodate for new needs and lifestyles. Some people are desperate for more space, and with current mortgage rates dropping below 3%, the real estate market is booming. As a result, real estate agents and property managers are adjusting to the influx of business and changes in the market.
The pandemic has also created more exposures when it comes to real estate agents’ and property managers’ professional liability needs. Errors and omissions (E&O) coverage is now more important than ever, and we as insurance professionals need to educate our consumers and provide protection for their needs.
It is expected that COVID-19 will impact the real estate market through 2021. It is a seller’s market, with low inventory, bidding wars and buyers waiving inspections, all of which can lead to buyer’s remorse. We anticipate this resulting in a higher number of suits made against real estate agents.
On the property management side, a lot of states have moratoriums on evicting tenants. In the current market, tenants cannot be evicted if they can no longer pay their rent due to unemployment or illness. Once the moratoriums are removed, we expect to see an increase in wrongful eviction claims.
There may also be an increased exposure to fair housing claims. Due to potential COVID-19 exposures, agents may choose not to work with certain clients. Although an agent may think they are protecting their health, a potential buyer or tenant could feel discriminated against for other reasons. Agents and property managers should be sure to ask potential buyers and tenants the correct screening questions to avoid fair housing and tenant discrimination issues.
USLI offers two comprehensive products, Real Estate Agents E&O and Property Managers E&O, both of which offer coverages specific to the needs of each profession. If an applicant has sales and leasing services, these products provide coverage for both. Some other advantages include:
- Defense outside the limits
- Tenant discrimination limit of up to $1 million
- Wrongful eviction coverage for residential properties
- Coverage for selling/leasing personally owned property
- $50,000 professional reputation restoration expense included (Real Estate E&O product only)
- $25,000 privacy breach expense included (Real Estate E&O product only)
The real estate market continues to grow and change as a result of COVID-19. This growth presents more opportunities to expand and diversify your own business. Reach out to your Professional Lines underwriter today for more information.
As always, thank you for your support and business.
Contact Maggie Heck
Product Leader | 888-523-5545, ext. 2390
Contact Mary Jane Law
Product Leader | 888-523-5545, ext. 2630
Written by Erika Cordivari
December 3, 2020