The standard Astara Real Estate Errors & Omissions insurance policy offers a variety of endorsements that allows the applicant to purchase a policy that that is designed to respond to the individual or firm’s very specific needs. These endorsements range from adding coverage for additional professional services to adding coverage extensions not included in the standard policy.
The Astara Real Estate E&O policy provides the option to add additional professional services that are specific to the real estate firm. These additional professional services include:
Business Brokerage EndorsementThose firms whose professional services also include business brokering operations will want to include this endorsement on the policy. The charge for this endorsement is based upon the revenues generated from the business brokering services provided by the insured.
Escrow Agents CoverageThose insureds whose professional services include escrow agent services performed for others will want to purchase this endorsement. The charge for this endorsement is based upon the revenues generated from the services performed by the insured.
Firms that provide mortgage brokering services will want the policy to extend coverage for those operations. The charge for this coverage is based upon the revenues generated from these services. The following endorsements are added to the policy when Mortgage Brokering revenues are included on the application:
Mortgage Banking Services Exclusion which excludes all Mortgage Banking Services from coverage. Regulatory Exclusion which excludes coverage for any federal, state or local regulatory agency unless the professional services were rendered by the insured.
Title Agents and Title Abstractors CoverageIf an insured performs professional services for others that include title agent, title abstractor or title searcher services this endorsement should be purchased. The charge for this endorsement is based upon the revenues generated from these services.
The Astara program offers a variety of coverage endorsements that allow the insured to customize the coverage to fit their needs. These additional coverages include:
First Dollar Defense – Each ClaimThe insured has the option of purchasing first dollar defense coverage. When this endorsement is purchased, the deductible the insured is obligated to pay applies to the payment of damages only.
Mold, Fungi, and Microbe CoverageThe insured may purchase this endorsement which removes the limitations on mold, fungi and microbe coverage within the standard Astara Real Estate E&O policy.
Residential OwnershipThe insured has the option of extending the standard Astara Real Estate Errors & Omissions Insurance policy to provide coverage for the sale or attempted sale of residential property wholly or partially owned by the insured, their spouse or domestic partner.
Amend Exclusions Endorsement (Owned Property)This endorsement provides full coverage for the leasing of owned, constructed or developed real property and the sale or attempted sale of owned, constructed or developed commercial property.
The insured may purchase coverage for the sale or attempted sale of properties that have been constructed or developed by the insured under a separate business entity owned by the insured. The insured has the option of two endorsements:
Construction and Development Properties SublimitThis endorsement is specific to a single business entity owned by the insured that is constructing or developing properties and offers limit options of $100,000, $250,000, $500,000 and $1,000,000.
Construction and Development Properties Sublimit for Specified Business EntitiesThis endorsement is specific to those firms that have multiple business entities constructing or developing properties and offers limit options of $100,000, $250,000, $500,000 and $1,000,000.
The standard policy provides a Limited Contingent Bodily Injury/Property Damage endorsement specific to the sale or attempted sale of residential property with limits of $5,000 Each Claim/Aggregate Limit subject to a $500 deductible. The insured has the option of increasing the limits and the professional services covered through the purchase of the following endorsements:
Contingent Bodily Injury/Property Damage – Professional ServicesThis coverage provides bodily injury and property damage coverage from an act or omission in the rendering of professional services (excluding Property Management) subject to the requirement that no other insurance applies to the claim.
Contingent Bodily Injury/Property Damage – Property Management This coverage provides bodily injury and property damage coverage from an act or omission in the rendering of professional services as a property manager subject to the requirement that no other insurance applies to the claim.
These endorsements offer optional limits of $25,000, $50,000 and $100,000. Both endorsements require that the insured maintain a Comprehensive General Liability insurance policy including premises/operations and products/completed operations in the amount of $1,000,000.
Employment Practices LiabilityThe insured may choose to extend the policy to provide coverage for Employment Practices Liability insurance which covers wrongful employment practice or wrongful discrimination claims.
Each Claim and Aggregate DeductibleThe insured has the option to purchase an aggregate deductible which limits the total amount of all deductible payments during the policy period. The aggregate deductible options are one, two or three times the deductible. The aggregate deductible is available for both damages and claims expenses and damages only (First Dollar Defense) policies. Examples:
Zero Dollar DeductibleIf preferred, the insured has the option of purchasing a zero deductible which removes the deductible entirely from the policy. Though it increases the premium, it can make sense for some insureds.
Amend Deductible to Self-Insured RetentionThose larger firms that have an approved legal firm and higher deductibles of $10,000 or more may wish to be more in control of their claims and may choose to purchase this endorsement. The purchase of this endorsement does place the claim expenses inside the limits of liability.
Not-For-Profit Directors’ and Officers’ CoverageThe insured has the option of purchasing Not-For-Profit Directors’ and Officers’ coverage at limits of $15,000 each claim up to $30,000 per policy period for damages or claim expenses for claims arising from the insured’s activities as a director or officer of an outside organization.
Claim Expenses Inside the LimitsIn the standard Astara Real Estate E&O policy the claim expenses are in addition to (or outside) the limits of liability. This means that the claim expenses the carrier pays out in defense will not erode or reduce the limits of liability available for the payment of claims.
Additional Insured FranchiseThose insureds that are a part of a franchise organization may choose to include additional insured coverage for the franchise organization’s regional and international operations for claims made against them for an act or omission in the performance of professional services by the insured. The inclusion of this endorsement is usually a requirement of the franchise organization.
RE/MAX FranchiseThose insureds that are a part of a RE/MAX franchise organization may include additional insured coverage for the RE/MAX regional and international operations for claims made against them for an act or omission in the performance of professional services by the insured. This endorsement also provides the insured with an aggregate deductible limited to three times the deductible and $1,000,000 Discrimination limit of Liability.
Vicarious Liability CoverageThe insured has the option of adding vicarious liability coverage for those entities that may have an interest in the insured’s operation to the policy subject to underwriting approval.
Automatic RenewalThis endorsement is included on the policy of those insureds who meet the requirements and extends the policy for a second year subject to limitations provided on the form including but not limited to the following:
Renewal CertificateThose policies that include the Automatic Renewal will have a Renewal Certificate issued in lieu of a completely new renewal policy. The Renewal Certificate will be issued for those policies that meet the requirements of the Automatic Renewal.
The Astara Real Estate E&O policy offers a variety of Predecessor Firm endorsements that provide limited coverage for the insured’s Predecessor Firms. These endorsements include:
Predecessor Firm Retroactive Date ExclusionThis endorsement provides the most complete coverage for the insured’s predecessor firm(s).
Predecessor Firm LimitationThis endorsement provides Predecessor Firm coverage subject to a limited time period.
Predecessor Firm Gap Coverage ExclusionThis endorsement provides Predecessor Firm with a limitation based upon a gap in coverage
The policy automatically provides a 60-day Extended Reporting Period. There are a variety of Extended Reporting Period (ERP) options available to the insured. These include:
Optional Extended Reporting PeriodThe Astara Real Estate E&O program provides the insured with the ability to purchase an Optional Extended Reporting Period for:
Death and Disability Extended Reporting PeriodThe Astara Real Estate E&O program provides an unlimited death or disability extended reporting period at no cost to the insured.
Non-Practicing Extended Reporting PeriodThe Astara Real Estate E&O program provides a non-practicing extended reporting period to individuals at no cost to the insured.
We strongly suggest that you carefully read the endorsements you are interested in purchasing as the description provided is simply an overview of each endorsement. If you have any questions, your insurance agent will be able to assist you or if you prefer you may contact Astara Insurance Solutions as we will be happy to assist you at any time.
