Real Estate brokerage is a big business. As far as the industry goes, it looks like the country has moved forward from the debilitating effects of the recent economic downturn. In today’s market, national home prices have actually come up by 5.7 percent on a year-to-year basis as of last January. No wonder a lot of people are investing in properties again.
Not surprisingly, the real estate agency and brokerage has also become one of the most sought after careers. It does not need a high college degree or a great deal of experience. All you have to rely on are your own skills at selling houses.
As a result, the real estate industry now employs more than 2 million people including about half a million real estate agents and brokers. An interesting tidbit is that majority of the real estate companies in the US are independent and only 3 percent are subsidiaries of large corporations.
Not many industries are dominated by smaller companies but real estate was able to create an environment where large corporations are not able to impose their will on independent firms. However, there are also a lot of risks in setting up your own independent real estate company, especially if you are just starting up and do not have much in the way of profit yet. A small mistake can lead to a claim or lawsuit that could potentially be detrimental to your business. That is why it is important that you protect yourself by getting business insurance for real estate agents.
But as a real estate professional, what type of coverage do you need? Here are a few suggestions:
General liability coverage
As a real estate agent, you will be given access to properties owned by different people and you have the responsibility to take care of it while under your care. But no matter how careful you are, there are things that are totally out of your control.
What if, in one of your open houses, a guest spills wine on the expensive carpet? You or one of your employees could also forget to lock the doors and made it vulnerable to theft. Or worse, someone could get injured in one of the properties you are selling or in your place of business. This coverage takes care of the expenses due to damages, injuries, or lost items up to the policy limit.
Professional liability insurance
Not all transactions will be successful and if a client is dissatisfied, an unsuccessful sale could actually get worse. If advice you gave turned out to be wrong and leads the client to lose money, then you might be taken to court for it – especially if it turns out that you knowingly gave wrong information or withheld important information. Whether intentional or unintentional, you can still be sued. This type of policy can cover your defense, help you in court, and even pay the settlement or damages to be awarded to the person suing you.
Property insurance
This coverage protects your place of business and your business properties. This will pay for any damages and injuries that occurred in your business property. This includes computer and data property.
In closing:
Running a real estate business has a lot of risks. Fortunately, you can safeguard your business from unexpected expenses through wise insurance investments.