How Much Does Real Estate E&O Insurance Cost? Get Your Answers Here!

Real estate Errors and Omissions (E&O) insurance is an essential protection for real estate professionals against potential lawsuits arising from mistakes made during transactions. It covers legal fees, court costs, and settlement expenses that may be incurred from defending yourself in court. Obtaining real estate E&O insurance can save you a lot of money and protect your business from financial ruin if sued. However, the cost of obtaining this insurance depends on various factors which we will outline in this article.

Factors that Determine Real Estate E&O Insurance Cost

1. Coverage Limits: Real estate E&O insurance cost typically increases with higher coverage limits. Higher coverage limits correspond to greater protection against lawsuits, and as such, carry more risk for insurers.

2. Your profession: Real estate E&O insurance cost also depends on the type of real estate professional you are – a Realtor, a real estate broker, or an appraiser. This is because the risks each profession faces are unique.

3. Claims history: Your claims history also affects your insurance costs. If you’ve had previous claims against you, or work in a profession that commonly faces lawsuits, then the cost of getting an E&O policy may be higher compared to someone with a clean history.

4. Location: The cost of real estate errors and omissions insurance may vary depending on where you live. Factors such as the state’s laws regarding real estate, the number of lawsuits filed, and the level of competition among suppliers may all impact the cost of the policy.

5. Deductible: The amount of deductible you choose can also affect the cost of your policy. A higher deductible can lower your premiums, but it means you’ll be responsible for a greater share of the legal fees if sued.

How Much Does Real Estate E&O Insurance Cost?

Real estate E&O insurance cost varies depending on the above factors. According to a national survey by the National Association of Realtors, most realtors in the U.S. pay a range of $750 to $2000 annually for E&O insurance.

However, this cost may vary depending on the state you operate in. For instance, California realtors pay an average premium of $1,500 to $2,500 annually, while in New York, premiums are around $1,000 to $1,500 per year.

Additionally, the coverage amount you choose will also impact the cost of your policy. For instance, a $1 million coverage limit may cost around $800 to $1000 per year, while a $2 million coverage limit can cost $1,200 to $1,800 annually.

It’s worth noting that some states, such as Texas, have a minimum required coverage amount. As such, the cost of real estate E&O insurance may be higher in such states.


Q: Is real estate E&O insurance required by law?

A: While it is not required by law in most states, many brokerage firms and associations require their members to have E&O insurance. Additionally, some states impose a minimum E&O insurance requirement for real estate professionals.

Q: What does real estate E&O insurance cover?

A: Real estate E&O insurance covers legal fees, court costs, and settlement expenses that may arise from lawsuits against you. It may also cover expenses related to damages caused, such as financial loss or bodily injury as a result of a mistake during a transaction.

Q: Can I get real estate E&O insurance if I have a past lawsuit?

A: Yes, you can still get E&O insurance if you have had previous lawsuits. However, your premiums may be higher because previous lawsuits indicate a higher risk of future lawsuits.

Q: How do I find a reliable E&O insurance provider?

A: Finding a reliable E&O insurance provider can be challenging. However, it’s important to do your research and choose a reputable firm with a history of providing quality coverage to real estate professionals.

In conclusion, the cost of real estate E&O insurance varies depending on several factors. It’s essential to get a quote from a reputable insurance provider to determine the actual cost of your policy. Finally, always remember that the cost of E&O insurance is a small price to pay for the protection it offers in case of a lawsuit.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *