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Errors & Omissions Insurance | Real Estate Exam Prep - YouTube
Channel: The Real Estate Classroom
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[Music]
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hi everyone welcome to the real estate
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classroom youtube channel in today's
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real estate exam prep video we're going
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to discuss type of insurance that you
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have to know about because
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you probably have to have it it's called
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errors and emissions
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insurance commonly referred to in the
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industry is eno insurance
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and we're going to talk about this type
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of insurance right now
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hey everyone my name is paul vachesky
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and welcome to the real estate classroom
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youtube channel where our mission is
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simple that's to help you pass your real
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estate exam
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the first time so in today's real estate
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exam prep video we're going to discuss
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a type of insurance that you have to
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have to have as a real estate
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professional in most jurisdictions in
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the united states it's called errors and
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emissions insurance
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commonly referred to is eno insurance
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now
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what this is is basically your
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malpractice
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insurance not unlike a doctor or a
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lawyer who'll have their
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their malpractice insurance that's what
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errors in admissions insurance is
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so if you make a mistake you screw
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something up in a real estate
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transaction you have that insurance
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coverage
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to protect you financially and it does
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provide
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for in most policies it does provide for
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legal counsel so the arizona emissions
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insurance company will go out and hire a
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local attorney
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to represent you uh in case you get sued
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so
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but there are some things that you have
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to know for the real estate exam and you
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also have to know as a practitioner and
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i'm going to discuss both here
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number one is errors and emissions
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insurance
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may not be required for every licensee
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in every state
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some states very few but there are some
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states that only the designated
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broker is required to carry errors in
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emissions insurance and then if one of
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their salespersons or
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associate brokers get into some kind of
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legal trouble then their eno insurance
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covers that licensee and in most states
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though every licensee including the
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designated broker
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has to have errors and emissions
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insurance and why this is important is
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each state is specifically different so
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you have to know
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for your state portion of the real
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estate exam which your state eno
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insurance coverage coverages and
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requirements are so make sure you you
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look into that when you're preparing for
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your real estate exam
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from a practitioner point of view there
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are a few things i really want you to
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know about because i see this a lot in
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where i'm at here in nebraska and it
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extends across the united states and
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that is you need to make sure
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that you have the appropriate amount of
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coverage very important because most of
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these
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policies have a a basic minimum and
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quite frankly that's what most
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real estate professionals do let's go
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get the basic package and that's it i
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gotta have the insurance
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so i'm gonna get the bare minimum but
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that may not be adequately
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protecting you so for example if your if
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your base coverage is
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250 000 in liability coverage
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but yet you're dealing in million dollar
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homes
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uh large commercial transactions or
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large uh
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agriculture transactions million plus
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those type of things you don't have
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enough insurance coverage
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so you need to make sure that you have
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the appropriate insurance coverage
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because
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if anything above your insurance
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coverage if there's a judgment against
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you
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especially in states that have punitive
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damages
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they're going to come after your
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personal finances so you need to make
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sure you have the appropriate coverage
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the other thing is
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not every insurance carrier provides
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uh carte blanche type coverage so they
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may protect you on a sales transaction
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but not in a leasing or a management so
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you have to have that discussion with
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your insurance carrier to find out if
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you're doing property management and
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you're doing leasing
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are are those activities covered a lot
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of
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errors and emissions insurance coverage
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does not cover things like fair housing
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complaints
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unless you have an additional rider that
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you've paid for so you have to ask
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questions
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environmental writers so if you're in
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commercial you're industrial or maybe
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you're
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managing those pre-1978 homes where
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lead-based paint issues are prominent
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you have to find out whether or not
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you're required to have an environmental
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writer
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that's an additional amount of coverage
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and the other thing is with so many real
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estate professionals uh buying and
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selling their own investment properties
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understand that almost i in fact i can't
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think of one in errors and emissions
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insurance coverage where i've seen where
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they cover
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a transaction where you're representing
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yourself self as a buyer or a seller so
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you have to ask that question
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you know if i'm doing my own deal will
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errors and emissions insurance coverage
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protect me
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and so those are not so much things
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you're going to need to know for the
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real estate exam but definitely as a
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real estate
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professional so there you have it if
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you're going to continue studying i
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highly recommend that you check out this
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video right here
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if you have not subscribed to the
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channel please do so it helps the
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channel grow click the little circle to
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my left
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comments or questions down below love
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comments and questions that's it for
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this week i'll see you all in the next
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video
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