Top Ten Most Frequent Real Estate E and O Claims Part Three

By Lana Schroeder Esq of Rice Insurance Services Company LLC

This article continues with the fifth and sixth most common real estate E&O insurance claims: bodily injury/property damage and misrepresentation.

Bodily Injury / Property Damage

Most often the types of claims we see in this area concern undisclosed latent defects, such as water intrusion in the basement, a leaking roof, termite damage, etc. Typically, claimed damages will include damage to or destruction of personal property and diminution of value of the subject property.

We also receive claims concerning the bodily injury of the claimant or plaintiff.

Examples may include physical injury occurring on the property while it is being shown or managed by the insured, sickness or disease resulting from an undisclosed mold problem, mental anguish, pain or suffering, or emotional distress

Misrepresentation Regarding the Condition of the Property

When plaintiffs allege the misrepresentation of numerous issues concerning the subject property, which happens frequently, we classify the claim under this general heading. Oftentimes a claim or lawsuit based primarily on the misrepresentation or nondisclosure of one issue will also contain several incidental allegations. On the other hand, some lawsuits or claims may simply contain a laundry list of unrelated problems the plaintiff claims were misrepresented or undisclosed. Examples may include misrepresentation concerning water intrusion, foundation defects, age of the home, type of flooring, condition of the roof, nature of the drywall, synthetic stucco, presence of mold, etc.

(Editor’s note: We’ll cover the remaining real estate E&O insurance claim types in Parts Four and Five of this series.)

Reprinted with permission of Rice Insurance Services Company, LLC

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