Real Estate Agent Insurance

Realtors help people become first-time homeowners and assist those who are looking to sell their homes, whether to downsize or upgrade. Most real estate agents are not independent contractors but work for real estate agencies that provide them with resources and support. One of the most essential resources to have, though, is real estate agent insurance.

An independent insurance agent can help you find the exact policy necessary for the job. They'll make sure you walk away with all the coverage you need. But first, here's a deep dive into real estate agent insurance.

Quick Real Estate Agency Industry Stats

The real estate industry is huge. Check out some quick stats to get a better idea of just how massive the industry has become. 

• There are more than 1.53 million realtors in the U.S. as of 2023.
• There are more than 143.8 million housing units in the U.S. as of 2023.
• The U.S. real estate industry's market size is about $222.3 billion as of 2023.
• The value of all housing units across the U.S. is about $43.4 trillion as of 2023.

With the real estate industry continuing to grow and generate more revenue over time, having the right coverage only increases in necessity. 

Why Real Estate Agencies Need Commercial Property Insurance

While most of the work done by the agents you employ at your real estate agency is done away from the office, you need a home base to greet clients, handle paperwork and closings, take phone calls, and keep your files. 

Insurance for real estate agents includes commercial property coverage to help protect any physical buildings and inventory or materials used for the job. The amount of property insurance you need depends on how much you have invested in your front office. An independent insurance agent can help you get set up with the right amount of commercial property insurance for your real estate agency.

Why Liability Coverage Is Critical for Real Estate Agencies and Agents

Insurance for a real estate agent must also include liability coverage to protect against the potentially hefty cost of lawsuits. Liability insurance covers court costs, legal fees, and financial damages, leaving you to focus on running a profitable business. 

Some liability coverage options to include in your real estate agency insurance policy are:

• General liability insurance: This protects your business if a customer or another third party gets injured or suffers personal property damage on your business premises.
• Commercial auto insurance: This protects costs related to incidents involving any company vehicles, such as those that may be used to drive to various properties. 
• Employment practices liability Insurance: This protects your real estate agency’s finances if a current or past employee sues your business for harassment, discrimination, breach of contract, or wrongful termination.
• Professional liability insurance: This protects your agency in the event of a lawsuit due to third-party claims against you for professional errors, such as housing discrimination violations and property damage during open houses as a result of agent negligence.

An independent insurance agent can help you complete your real estate agency insurance policy with every type of coverage required for your business.

What Other Types of Coverage Do Real Estate Agents and Agencies Need?

In addition to the coverage types listed above, there are other types of real estate agent insurance you may need. Other commonly added types of coverage include:

• Workers' compensation insurance: This insurance is required of employers in most states but may not pertain to your business if the agents representing your brand are independent agents rather than employees.
• Employee dishonesty insurance: This type of crime insurance protects your business from financial losses if an employee steals from your agency or engages in other illegal behavior while on the job.
• Commercial umbrella insurance: This coverage can extend your liability protection in an existing policy in case of a huge lawsuit. Coverage limits can be extended in increments of $1 million.

When you work with an independent insurance agent, you can learn more about your various exposures and the insurance options available to cover them.

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Why Work with an Independent Insurance Agent?

The easiest way to ensure you have comprehensive real estate agency insurance is to work with an independent insurance agent. These knowledgeable agents can help you realize your unique industry risks and recommend the right insurance types to cover them. They also shop and compare policies from multiple local carriers for you, ultimately providing you with the results that offer the best combination of coverage and cost.