Errors and Ommissions Insurance (closing, fee, broker, cost) - Real Estate Professionals - City-Data Forum

nadia32 · 10-20-2009, 08:05 AM

Hi Everyone- Do you generally pay your E&O insurance for the full year all at once? Just started and am told I have to pay $400 immediately for the insurance and it was not prorated-but simply the one fee from july to july even though I just got license in Sept. Just wanted to see if this was the norm? seems kinda steep- but I guess it is what it is! fyi- I am in NY.

2bindenver · 10-20-2009, 08:37 AM

We have to pay each year in December, or face being unlicensed in January.

Brandon Hoffman · 10-20-2009, 08:51 AM

We pay in Jan and it's for the year. I don't think mine was prorated when I started either but I'm not certain.

Silverfall · 10-20-2009, 09:09 AM

Yep one lump sum. $400 is cheap.

MMichelle · 10-20-2009, 09:11 AM

Yep - it's not free to be in business. $400.00 - not bad!

Mike1306 · 10-20-2009, 09:55 AM

I pay $14 per closing so I guess I have it pretty good. I would have to close 29 homes to be above $400.

middle-aged mom · 10-20-2009, 01:29 PM

One annual lump sum here, too.

My broker charges $750 a year.

Brandon Hoffman · 10-20-2009, 10:43 PM

Quote:

Originally Posted by Mike Peterson

I pay $14 per closing so I guess I have it pretty good. I would have to close 29 homes to be above $400.

Ooh, that wouldn't be good for me. I'd more than double the $250/yr I pay now.

Mike1306 · 10-20-2009, 10:54 PM

Quote:

Originally Posted by Brandon Hoffman

Ooh, that wouldn't be good for me. I'd more than double the $250/yr I pay now.

Back when I was selling alot more land it wasn't too good but with homes it is not that bad.
It did just go up from $12 to the $14 this year.

MikeJaquish · 10-21-2009, 06:32 AM

What would a RE firm pay for E&O?
Mom and Pop or National firm?
Would you expect E&O to be a profit generator for the Broker, or a pass through at broker cost to associate?