Claim Prevention E&O Toolkit: Tools to Avoid a Real Estate Lawsuit

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When does real estate E&O insurance protect you far beyond the typical policy?  When the E&O insurance actually helps you every day — with access to claim prevention resources to help you avoid a claim, not just cover it after the fact. But what’s in that claim prevention toolkit? How do you access and use it to avoid real estate lawsuits? Here’s a look at the new generation of Real Estate E&O + ClaimPrevent® that CRES offers to its real estate E&O clients:

Legal Advice Hotline

Each transaction has its opportunity for misunderstandings, omissions and mishaps that could put you in a claim situation. For E&O insurance to truly help you manage your risk daily, it should help you reduce and eliminate the chance of small issues turning into costly claims. Having legal experts you can call to review a contract, ask a question, or give you advice on how to proceed greatly reduces your risk of a claim. CRES Legal Advisory Services for Risk Management gives you on call access to attorneys seven days a week to ask questions and get help before you take action on something that could result in a claim. No other real estate E&O insurance company offers this.

Seller’s E&O Insurance

Seller’s E&O benefits you by covering your clients in the event of a disgruntled buyer after the sale. If your clients get sued, you could too. Covering your clients with Seller’s E&O insurance — at least $25,000 in coverage for 180 days after the sale — gives an added layer of protection. It’s also a great selling point to help you close more listings. No other real estate E&O insurance company offers this.

CRES Home Warranties

Home warranties are not all created equal — the right one can help you reduce claims. Even better, home warranties can make some listings more attractive to buyers, which can reduce the time it takes to sell a house. CRES has partnered with top companies to offer qualified and preferred home warranty products that include coverage not typically found elsewhere, like Structural Coverage. Because of the increased level of protection, you receive up to $50,000 (state limits vary) in Seller’s E&O for your clients when you pair them with a CRES qualified home warranty.

Building Permit History Reports

CRES believes in the power of Building Permit History Reports to reduce your claims.  With your Real Estate E&O + ClaimPrevent® policy, you’ll receive 25 free reports every year. They can make a difference, because 1 in 5 claims results from a permit issue. A high percentage of these are avoidable and yet happen all the time. CRES makes it easy to access and share Building Permit History Reports with your buyers before the close of sale and reduce your risk of a real estate lawsuit. No other real estate E&O insurance company offers this.

The Latest Legal Information  — Try It!

CRES keeps you up-to-date with changing real estate laws and new restrictions in all 50 states. We also have a public Document Library with sample letters and other forms that you can access. See what you’ve been missing — you can get helpful tips and pointers from CRES on a regular basis by subscribing to our monthly claim prevention and E&O tips newsletter.

What do you do to reduce your claims risk? Tell us in the comments below!

This blog/website is made available by CRES Insurance Services for educational purposes to give you general information and understanding of legal risks and insurance options, not to provide specific legal advice. This blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Claims examples are for illustrative purposes only. Read your policy for a complete description of what is covered and excluded.

Originally Published December 7, 2016

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