Property Damage or Bodily Injury at the Inspection: What is BIPD?
A common misconception is that appraiser E&O Insurance covers appraisers for any and all claims against them.
However, a basic Appraiser E&O policy will only provide coverage for errors or omissions made in reporting/professional services, such as using the wrong zoning, failing to report an easement or unpermitted improvements, measuring square footage incorrectly, or making other mistakes or oversights in your reports.
In other words, a basic Appraiser E&O policy does not provide coverage for appraisers if they (1) cause property damage, or (2) cause bodily injury in the course of providing their professional services. For this reason, many insurance agencies try to sell appraisers a second General Liability insurance policy for $300 to $500 per year.
GL is carried by most retail establishments, as well as more “physical” professions such as contractors, plumbers, etc. The coverage can vary, but it can cover your tools and it typically protects business against “slip and fall” lawsuits by providing Bodily Injury and Property Damage (BIPD) coverage.
OREP estimates that 97% (or more) of appraisers are only carrying E&O insurance and do not purchase a separate GL policy every year. This means most appraisers do not have BIPD coverage unless it is specifically endorsed onto their E&O policy.
That brings us full circle to our question: WHAT is BIPD?
BIPD stands for Bodily Injury and Property Damage, and in the case of real estate appraisers, BIPD protects them from what E&O does not cover: accidental damage to property or persons (bodily injury) which you may cause while providing your professional services at an appraisal inspection.
Some BIPD-related claims that we’ve seen here at OREP include:
-Insured steps into newly poured cement that was just finished by the contractor several hours prior while measuring a home
-Insured flushes the toilet and it overflows causing water damage to expensive flooring.
-Insured opens an attic hatch and (allegedly) causes damage to pop-corn ceiling.
-Insured steps through a ceiling during an attic inspection.
With FHA appraisals now requiring more and more from appraisers, including testing appliances, flushing toilets, and inspecting attics and crawl spaces, awareness about the need for BIPD coverage is increasing. As a result, more and more appraisers are purchasing General Liability (GL) policies
OREP’s flagship E&O program includes (at no additional cost) $100,000 of BIPD premises liability coverage! Our insureds (in most states) now enjoy this valuable coverage at no charge when renewing their E&O insurance with OREP.
This allows us to meet the needs of our clients while saving them money. Of course, if you have an office and want the additional coverage a GL policy can provide, we offer that too.
Would you like a policy that includes BIPD Coverage?
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