Christopher Hamer from The Proterty Ombudsman has publicly announced a record number of claims against property professionals in 2010. Received more than 1,300, the highest figure in 20 years and an increase of more than 25% from 2008.
Because of this, Mr. Hamer takes into account any potential buyer that ensures your estate agent has professional indemnity cover in place.
As a result of this, national bodies such as NAEA (National Association of Estate Agents) have made it compulsory for estate agents to have a current professional indemnity policy in place before they can become a member of their association.
An estate agents professional indemnity policy can cover a variety of claims that could be made against your business. This policy will cover your business for professional services that are provided that have resulted in the customer who has a financial loss.
In essence, make sure to cover when any professional services provided by the results of the agent on his client suffers a financial loss.
Primary Professional indemnity coverage provides protection from accusations of poor advice and malpractice.
Shown below is a perfect example of a claim made against an estate agent: An estate agency valued a client's house and it was then placed on the market.
An estate valued the house of a client and was then placed on the market. The estate agent explained that the property sell quickly, so the landlord then purchased an additional property. The owner realized that after sitting for a long period in the home market was overvalued, and was eventually sold at a price lower than expected. An application had been successful for loss of interim financing and other expenses.
Professional indemnity insurance is not mandatory for estate agents, but there are a growing number of claims being made.
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