Did you know that your sellers are the main target of real estate lawsuits (based on our 20+ years of claims history)? That’s why CRES offers the Seller’s Protection Plan, available exclusively to CRES Errors & Omissions (E&O) Insurance clients.
What is the CRES Seller’s Protection Plan and What Does It Cover?
A homeowner’s insurance policy typically doesn’t cover claims as a result of a real estate sale.
CRES Seller’s Protection Plan (SPP) gives each of your sellers up to $25,000 in E&O insurance coverage. This protects your seller up to 180 days after closing if they end up with a disgruntled buyer filing a claim (and an extension for another 180 days can be purchased).
If you purchase your seller a CRES Home Warranty, you can increase your seller’s E&O protection up to $50,000.
CRES Seller’s Protection Plan covers the seller’s legal defense costs and damages up to the specified limits. Other seller’s insurance policies cover only the seller’s defense costs — the majority do not cover damages at all.
How a Seller’s Protection Plan Can Help
Usually, lawsuits against the seller arise when a property issue is identified post-sale. Often this relates to major defects or issues requiring extensive and costly repairs. The buyer may claim the seller didn’t disclose certain facts about the house that materially affect the value or desirability of the property.
When sellers are threatened with legal action by a buyer, they’ll frequently turn around and sue their listing agents.
A CRES Seller’s Protection Plan gives the seller the opportunity to settle out of court. Importantly, it also helps you stay out of a costly lawsuit because a condition of the SPP is that the sellers cannot make a claim against their real estate agent.
Why Real Estate Agents Need a Seller’s Protection Plan
Your E&O Policy Doesn’t Cover Your Sellers Your E&O policy only covers you in your real estate business (and your team if you have Team Coverage).
Seller’s Protection Plans Reduce Your Risk A Seller’s Protection Plan is an important tool for risk management for your sellers, but it also virtually eliminates the risk of them suing you as their real estate agent.
It Will Protect You from The 1% You probably never think your clients will turn on you. But a Seller’s Protection Plan can help protect you from that small percentage who will take legal action to minimize their own damages.
ItEncourages a Good Relationship With Your Seller Because the seller’s E&O policy will be voided if they sue you, the Seller’s Protection Plan encourages a good relationship between you and the seller. It helps ensure that you remain allies and not adversaries.
Offering Seller’s Protection Plan to Your Sellers Sets You Apart from the Competition Being able to provide your clients with E&O coverage is a valuable selling proposition. It’s a great opportunity to show that you really care about your clients both before and after the sale. You’ll gain a competitive edge on your competition when you use the Seller’s Protection Plans to drive more listings.
Speak to an Expert
In some states, CRES Seller’s E&O (SPP) is already included in the base E&O policy. It’s an option in other states for a minimal cost — for just a few dollars, you’ll have a tool to drive more listings for your entire policy period!
To find out more about how you can start using Seller’s Protection Plans to boost your real estate business, contact the CRES team at 800-880-2747.
When you purchase a CRES E&O + ClaimPrevent® policy, you’ll also have access to experienced litigation attorneys via the CRES Legal Advisory Line, as well as a whole host of other benefits to help you manage your risk.
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.
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