Rising interest rates, high home prices, a tight labor market and a possible recession all create performance pressure for realtors.
By Paul Dillon and Donna Genco | July 11, 2022
Independent insurance agents have an opportunity to grow their book in real estate — by providing the highest-quality real estate liability risk-management to carriers and by helping realty clients avoid potentially costly exposures.
Rising interest rates, high home prices, a tight labor market, and a possible recession can all put pressure on realtors to perform fast and bend the rules. Some may even be tempted to take on the roles of other professionals to provide a quick answer or expedite a transaction.
Insurance agents who place real estate professional liability coverage need to be on top of the situation for their clients’ sake and for their own relationships with carrier partners.
Insurance agents who keep realtor “mission creep” top of mind will maximize their value to both realtor clients and underwriters.
Are there adequate guardrails?
Real estate agents sometimes find themselves delving into legal, financial and technical areas related to the sale of a property. It may be that they are trying to get a deal done expeditiously. Or, it may be they do not have easy access to a group of independent experts. Or the client may refuse to follow the realtor’s recommendation that an expert be engaged. When a realtor takes on the role of other professional advisors to a transaction, they increase their professional liability exposure.
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