Appraisal Bias: A Costly Battle for Appraisers
Claims of appraisal bias can have devastating financial and personal consequences for appraisers. The mere accusation of bias can lead to lawsuits, hate mail, and even death threats, leaving appraisers in a state of fear and uncertainty.
The Story of One Appraiser’s Legal Battle
One appraiser, who wishes to remain anonymous, found himself at the center of a lawsuit alleging appraisal bias. The appraiser’s reputation and livelihood were on the line as he faced mounting legal fees and a tarnished professional image.
He credits his errors and omissions insurance with covering more than $100,000 of his costs, which helped him “get through the trial and try to clear my name.” This financial lifeline allowed him to fight back against the accusations and ultimately prove his innocence.
The Financial Toll of Appraisal Bias
For many appraisers, the financial toll of appraisal bias can be crippling. In the case of the appraiser mentioned above, his income was cut by 66% in the first two years after the lawsuit was filed. He struggled for years to survive, facing the very real possibility of losing his business and livelihood.
“It affected my business a great deal. What I was accused of wasn’t true, it wasn’t provable and that’s vindication,” the appraiser said. The emotional and financial toll of the lawsuit was immense, but with the support of his errors and omissions insurance, he was able to weather the storm.
The Importance of Errors and Omissions Insurance
Errors and omissions insurance is a crucial safety net for appraisers facing allegations of bias or negligence. This type of insurance provides financial protection in the event of a lawsuit, covering legal fees, damages, and other expenses associated with defending against claims of errors or omissions.
For appraisers like the one who faced a lawsuit over appraisal bias, errors and omissions insurance can mean the difference between financial ruin and survival. It provides peace of mind and security, allowing appraisers to focus on their work without the constant fear of litigation hanging over their heads.
As the appraiser mentioned, errors and omissions insurance was instrumental in helping him “get through the trial and try to clear my name.” Without this financial support, he may have been forced to close his business and abandon his career altogether.
In conclusion, the story of the appraiser who faced allegations of appraisal bias serves as a powerful reminder of the importance of errors and omissions insurance in protecting appraisers from financial ruin. As claims of bias continue to plague the appraisal industry, having the right insurance coverage can make all the difference in weathering the storm and emerging stronger on the other side.
Sources: Here
