1 / 18

THE REAL ESTATE E&O PUZZLE: HOW DO WE EVALUATE EXPOSURES?

THE REAL ESTATE E&O PUZZLE: HOW DO WE EVALUATE EXPOSURES?. The Round-Up…. MODERATOR: Fredric W. Trester, Esq., Partner, Manning & Kass, Ellrod, Ramirez, Trester LLP PANELISTS: Inga Goddijn, Managing Director, Markel Matthew Nangle, President, ProGroup International

feoras
Download Presentation

THE REAL ESTATE E&O PUZZLE: HOW DO WE EVALUATE EXPOSURES?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE REAL ESTATE E&O PUZZLE: HOW DO WE EVALUATE EXPOSURES?

  2. The Round-Up… MODERATOR: • Fredric W. Trester, Esq., Partner, Manning & Kass, Ellrod, Ramirez, Trester LLP PANELISTS: • Inga Goddijn, Managing Director, Markel • Matthew Nangle, President, ProGroup International • Amanda Whitted Sedliak, CIC, Senior Vice President, Capitol Special Risks, Inc. • Richard Sheridan, Vice President, ACE USA Claims

  3. What’s On Tap… • Real Estate Market Trends and Emerging Exposures • Underwriting Considerations and Available Coverages • Insurance Coverage • Risk Management • Claims Handling • Take-aways • Questions & Answers

  4. Real Estate Market Trends and Emerging Exposures What is different about the real estate market today? • The Housing Market • Short Sales & REO Sales • Loan Modifications

  5. Real Estate Market Trends and Emerging Exposures What are the specific exposures? • Real Estate Brokers (Commercial and Residential) • Property Managers • Mergers & Acquisitions

  6. Real Estate Market Trends and Emerging Exposures What are the specific exposures for each category? • Appraisers • Mortgage Brokers • Title Agents

  7. Underwriting Considerationsand Available Coverages What is the impact on the underwriting process? In prior years, key questions included: • Length of time in business / licensed? • Are home warranties included? • Are home inspections done prior to closing? • Are standard contracts & seller disclosure statements used? • Does the agency engage in dual agency transactions?

  8. Coverage Questions on a Real Estate Professional Supplemental App: What should underwriters look for today? • Percentage of sales involving foreclosed homes • Percentage of sales that are short sales • Percentage of sales from agent owned property • Do any brokers or agents have an ownership interest in a construction or development company? • Is any broker or agent actively engaged in “fix & flip” activities?

  9. Coverage Questions on a Real Estate Professional Supplemental App: What is important to know regarding short sales? • Of the total number of short sale deals, how many have closedin the past 12 months? • What specific training is provided to staff regarding short sale transactions? • What specific procedures or policies are in place for the handling of short sale transactions? • Do you recommend, in writing, that all short sales be reviewed by an attorney & CPAfor potential legal and tax implications?

  10. Underwriting Considerationsand Available Coverages What is a reasonable expectation of coverage? • SIRs / Deductibles • Choice of Counsel • Retro Dates and Prior Acts Coverage • Agent-Owned Property • Pending and Prior Litigation Endorsement

  11. Underwriting Considerationsand Available Coverages What is a reasonable expectation of coverage? • BI/PD • Business Brokerage • Pollution and Environmental • Third Party Discrimination • Syndicators and Promoters

  12. Underwriting Considerationsand Available Coverages What is a reasonable expectation of coverage, based on the definition of Professional Services? Restrictive: Residential Real Estate Sales for others for a fee Broad: A comprehensive listing of activities including sales, consultation, title, escrow, leasing, property management, tenant representation, appraisal, auctioneering, business brokerage, relocation assistance, expert witness, notary public, industry related committee participation, management consulting and internet-related activities.

  13. Insurance Coverage What are the coverage issues arising out of the changing market? • The implications of undisclosed services • Independent (Cumis) Counsel • Fraud and Deceit

  14. Risk Management What’s the role of risk management in this new environment? • Training • Coverage Discounts • Hotlines

  15. Claims Handling What is the impact on claims handling practices today? • Early Resolution • Mediation • Managing Counsel

  16. Take-aways • Better Communications Between Brokers and Underwriters Regarding Coverages • Brokers and Agents Must Know Which Carriers Offer What Coverages to Avoid Surprises to Their Clients • The Spirit of the Coverage Remains the Same for Real Estate Malpractice Insurance

  17. Questions&Answers

  18. Many Thanks to … • Fredric Trester • Inga Goddijn • Matthew Nangle • Amanda Sedliak • Richard Sheridan

More Related