Must Have Insurance Policies For Property Preservation Contractors

One of the most common questions I get asked is, "What kind of insurance policies do I need to be a property preservation contractor?". As a result, here's my blog post entirely about Property Preservation Insurance for anyone new to the REO Vendor business.

All of the clients that you will work for will require that you have at least the following 2 business insurance policies. However, most banks and REO asset management companies will allow you to begin working them as long as you have the first listed policy and they will give you a deadline to have the second policy, which will most likely be 30 or 60 days from when you begin working with them.

Please Note: This list only mentions the two main insurance policies that are specific to the Property Preservation industry and will most likely be required by any Property Preservation client companies you sign up for. This list does not include any other typical types of insurance such as auto, workers comp, unemployment, health, etc. You need to check with your state and local city to find out about any specific requirements regarding insurance coverage.

The 2 Main Property Preservation Insurance Policies

Policy 1) Commercial General Liability in the amount of $1 million per occurrence/ $1 million aggregate including:
- Personal injury/ Advertising injury protection
- Care/ Custody/ Control coverage in the amount of $50,000

Policy 2) Errors and Omissions Insurance in the amount of $1 million per occurrence/ $1 million aggregate including:
- Property preservation inspections
- Property preservation estimates
- Property preservation services
- Residential property inspections
- Delinquent borrower interviews
- Commercial property inspections
- Insurance loss inspections
- Eviction services
- Property repair estimates
- Property rehabilitation services
- Merchant site verification

Now if the above seems like a foreign language to you, don't worry. You just have to send the above specs to your insurance agent with instructions that you need the items exactly as specified. There is a good chance that your current insurance agent will NOT be able to help you out with the Mortgage Field Service Errors and Omissions policy for property preservation work. I had to call 11 different insurance companies until I found the one that specialized in property preservation errors and omissions insurance. Nowadays, your best bet is to search for an insurance company that specializes in mortgage field service insurance.

If you are in a jamb because you cannot find an insurance company to cover you for the Mortgage Field Services Errors and Omissions policy, you'll find what you need by checking our Property Preservation Insurance page on this website.

Plus if you are serious about succeeding in this business, you'll want to subscribe to the only newsletter dedicated to the Property Preservation contractors who are out in the field busting their tails. You can signup here to receive our Property Preservation Newsletter

P.S. Of course we have to put a disclaimer here to let everyone know we are not attorneys or insurance specialists. The information in this post is based on the requirements we were given at the time that we were signing up to become a vendor for several national property preservation companies. This post should NOT be construed as legal advice. You will have to check with your potential client for their particular requirements regarding property preservation insurance requirements.