| Home Appraisers and Home Inspectors are | | | | financial losses from settlements and legal fees. |
| important and necessary experts in real estate | | | | Even if the Appraiser is not at fault, they can be |
| transactions, but their roles are quite different. | | | | held responsible. They are especially vulnerable in a |
| Appraisers determine the value of a property, | | | | volatile economy when values plummet, and |
| and this information is also used in the estimation | | | | attempts are made by owners to regain losses |
| of homeowners insurance and real estate taxes. | | | | from decreased property values. |
| Appraisers inspect a home, its property, amenities | | | | Home Inspector E&O insurance is critical for |
| and upgrades, and also research other local | | | | protecting Inspectors because of the nature of |
| properties and their values to determine what a | | | | their business. If something goes wrong in a |
| home is worth. | | | | home, the homeowner may quickly blame a |
| Home Inspectors are not Appraisers. Home | | | | Home Inspector for not recognizing the potential |
| Inspectors look for defects in a home, or | | | | problem. Home Inspectors may not have been |
| problems which could lead to future repairs for | | | | able to foresee a fault in a home despite a |
| the homeowner. They look for structural | | | | thorough inspection, but still be sued by the |
| problems, in addition to electrical, plumbing, heating | | | | homeowner. Errors and Omissions insurance can |
| and cooling issues that indicate immediate repair | | | | protect the Home Inspector business and its |
| needs, or potential future problems. Both fields | | | | employees from monetary loss. |
| are vulnerable to law suits, and need to be | | | | If an Appraiser or Home Inspector is held |
| covered by Appraiser E&O Insurance and | | | | responsible for mistakes or oversights, it is |
| Home Inspector E&O Insurance to protect | | | | essential protection to have coverage with Errors |
| their businesses. | | | | and Omissions insurance. It is even a requirement |
| If a lender or buyer has a financial loss that they | | | | in some states to have this type of insurance for |
| believe was caused by negligence on the part of | | | | Home Inspectors and Appraisers, and it guards |
| the Appraiser, they can sue. Appraiser E&O | | | | the business, its owners, employees and |
| insurance will protect Appraisers from large | | | | subcontractors from losses. |