Did you know that most real estate E&O insurance policies don’t offer coverage for claims that arise due to injuries or property damage at open houses and showings? (It’s also called Contingent Liability coverage.) If something gets damaged or goes missing — you pay for it. A client cuts himself trying to open a window — those doctor’s bills could be all yours.
We’ve given you tips to reduce your risk of a claim during an open house or a showing, from locking up personal property to pet management. Accidents still happen. Here’s what you can do to ensure you’re covered before buyers ever set foot on the property.
Always Be Sure Your E&O Insurance Specifically Includes Open House and Showings Coverage
Your firm’s real estate E&O insurance may carry some coverage for an injury lawsuit against you. However, there are often exclusions if you are away from the office or for selling activities. This is a gap. Another gap can come from the sellers themselves. If they don’t have liability insurance for the property, you can be left paying any claim damages.
Your own personal real estate E&O insurance may also have a liability insurance component, but many companies don’t automatically include coverage for open house and showings damages or injury. You need to look for an endorsement or “Open House and Showings” coverage within your E&O policy that adds Bodily Injury and Property Damage coverage. Every home is unique, so are the risks when bringing clients into an unfamiliar home. With showings being a regular business activity for most agents, this type of coverage is vital.
If you perform open house and showings selling activity and you find your policy does not cover claims that might result from these situations, take action now. Find out if your E&O insurance provider offers this coverage to add. If not, then it’s time to look for a real estate E&O insurance company that understands your core business and offers — or better yet automatically includes — this essential protection. Learn more about CRES real estate E&O with Open House and Showings coverage.
Have you ever experienced a situation where Open House and Showings coverage did or could have helped you? Tell us in the comments below!