Real Estate Risk Management Insurance Services, Inc.

Real Estate Risk Management Insurance Services, Inc. was established on October 31, 2000.  Our staff has over 15 years of experience in the insurance industry.   Our goal is to provide quality, affordable insurance products for the California, Nevada & Arizona Real Estate professional.  We currently have access to over a dozen insurance companies, both admitted and non-admitted, all with an A.M. Best rating of A or better.  We work with our clients to provide them with the best coverage to suit their specific needs.  We pride ourselves on our outstanding customer service.

CA License #0D04080 : NV License #18798 : AZ License #872094

Errors & Omissions Insurance Application

Real Estate Risk Management Insurance Services, Inc. can also write      Errors & Omissions Insurance at a per transaction or annual rate for:

• Appraisers

• Title Companies

• Escrow Officers

• Property Managers

• Mortgage Brokers

We also write policies for General Liability.

Please return the application and all supporting documents via Fax to 800-379-7376 or by mail to our corporate office located at 14670 Cantova Way, #250, Rancho Murieta, CA 95683.

If you have any questions please contact our Manager Candice Ray via email or at 800-937-6526

Things to know when shopping for Errors & Omissions Insurance:

Not necessarily in order of importance:

PRICE:  While the cost of your insurance is important, it is not a good idea to simply hinge your decision on that aspect alone.  Policies vary substantially in content.  A large variation in cost between two policies could indicate significant differences in coverage.  Know what you are paying for.

CHOICE OF DEFENSE COUNSEL:  Typically, the insurer has the right to select counsel.  The carrier should have input on the selection of defense counsel to approve specialization of the handling attorney.  Carriers may be inclined to go with the Broker’s choice of counsel to avoid a Cumis counsel issue (conflict of interest).

THE UNDERWRITING/APPLICATION PROCESS:  Be sure to include all the professional services performed by your office.  If you do not wish to purchase coverage for a specific service, indicate in writing, which services are to be excluded.  Be certain that you understand the covered services and how it affects your office’s possible liabilities before accepting a quote.  Ask for a sample policy, read and understand the exclusions.  Understand what “prior acts” coverage means and what is the retroactive date of your policy.  The Department of Insurance requires that any added “broker fees” be disclosed as such in any quotes presented to the applicant.

FIRST DOLLAR DEFENSE:  This feature means that a Realtor pays the deductible only if/when a settlement is awarded.  By that time the agent could be gone, leaving the broker to pay the entire deductible.

INSURANCE COMPANY AS RISK MANAGER:  The broker should find out whether attorney consultations through the insurance company’s risk management service are handled as “claims” or unofficial, off the record inquiries.

MODE OF PAYMENT:  Some brokers prefer the “per transaction” arrangement; others maintain that paying the premium on an annual basis or in level installments can save money. 

AGENT OWNED PROPERTY:  Some policies provide no coverage at all.  Some policies limit the extent of coverage.  Some provide coverage if another listing agent is used in the transaction.  Some offer the coverage as an endorsement for an additional premium.

ADMITTED VS. NON-ADMITTED:  Non-Admitted does not mean non-regulated.  The non-admitted carriers listed on the back of this page have been reviewed and approved by the California Department of Insurance (CDI) for surplus line insurance in California.  These carriers are actually admitted in a state other than California. Surplus lines have been written by non-admitted carriers since the 1800’s, and generally are used when a risk is unusual, unusually large or when coverage is not available from carriers licensed in California. 

Information regarding non-admitted carriers was obtained from: The Surplus Line Association of California.  www.sla-cal.org

Errors & Omissions Insurance FAQ’s

 What factors determine the cost of my insurance?

There are many factors that come into play when rating an Errors & Omissions policy 

The number of years you have been licensed and in business 

The number of agents you have working for you and their years of experience

The type of business you are involved in

Your commission revenue 

Your claims history

Each insurance company weighs each of these factors differently

Will my insurance be canceled if I make a claim?

In most cases, the insurance company will not cancel your policy if you report one claim.  You may see an increase in your premium and/or your deductible, depending on the amount of the potential loss.  If multiple claims are reported, the insurance company may choose to not renew your coverage. 

What if I become “uninsurable”?

Generally speaking, no one is uninsurable. There is usually an insurance company that will take on an insured with multiple claims. The question is whether or not the potential insured is willing to pay a higher premium and cover a higher deductible.