Division of Real Estate Licensee E&O Insurance Requirement Reminder

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All of the professions regulated by the Division of Real Estate, except subdivision developers and appraisal management companies, are required to have errors and omissions (“E&O”) insurance. 

  • For real estate brokers, mortgage loan originators, and real estate appraisers, the Division is required by law to contract with an insurer for a group policy. You are not required to procure your coverage from the group insurer, but you do need to ensure that the coverage you obtain from a different insurer meets the limits set by the applicable board or commission rule.  You also need to be aware that depending on the activities that you are engaged in, e.g. property management, an additional rider to the base coverage may be necessary. Most E&O policies expire on December 31. 
  • In addition to E&O insurance, mortgage loan originators are required to have a surety bond in compliance with Board Rule 2.19. (Effective January 1, 2021 the surety bond requirements are codified in Rule 2.6.)
  • Appraisal Management Companies must post a $25,000 surety bond with the Board of Real Estate Appraisers in compliance with Board Rule 17.14.

If you fail to renew your insurance, the Division does conduct E&O audits to prevent uninsured professionals from practicing licensed activities.  If you fail to maintain an active policy, your license will be placed on inactive status. Depending on the type of license, you may be charged a fee to activate your license and you will be required to provide proof of insurance coverage