For those California experts is there anything in the law that requires obtaining (E & O) Errors and Omissions insurance for appraisals? This came as about as it was brought up in a meeting by one of our account exceutives involving a loan on a California property. It was noted that the appraiser located in Yucca Valley doesn't have Errors and Omissions insurance. Moreover, the appraiser licensed by the State of California, says that he's been in the business for 25 years and he isn't required to carry E O insuance and therefore will not pay for it. Is there anything in the Dept. of Corporation Regs or the CA Business and Professions Code covering this issue? I will appreciate any assistance.

I don't consider myself an expert by any stretch of the imiganation, but if I have an appraiser that can't provide evidence of current E&O, or their E&O lapses, he/she is removed from my approved list. My Board is in full support of this. While the appraiser may have "years" of experience and be financially sound enough to withstand any law suit, we are not willing (nor have the time) to analyze their financial strength or take undo risk. Our requirements clearly state that they must carry E & O insurance at all times.

Thanks for the reply. I took the liberty of contacting OREA
at the Dept. of Corp, but have not heard from anyone. I would assume that they would have to know whether or not an apppraiser is required to carry E & O ins.