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 31st.
  • In addition to E&O insurance, mortgage loan originators are required to have a surety bond in compliance with Board Rule 2.19.
  • Community Association Managers are required to have crime fidelity insurance that meets the requirements of Director Rule D-10.
  • Appraisal Management Companies must post a $25,000 surety bond with the Board of Real Estate Appraisers, as set forth in 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 duties.  If we discover that you do not have 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 show proof of insurance coverage.

Division of Real Estate