As we approach the dropping of the ball to close 2010 and introduce 2011, don’t forget to renew your Errors and Omissions Insurance. Unlike our real estate Broker licenses, which now renew on our anniversary dates, E&O Insurance renews every calendar year. The Colorado Real Estate Commission is auditing ALL licensees EVERY February; in 2009 and 2010 alike, thousands of people forgot to renew their E&O Insurance, and therefore were placed inactive when discovered by CREC.
If you should happen to forget your renewal, don’t despair. The consequences aren’t that terrible. When you’re placed inactive by CREC, it’s a simple form and a nominal fee – plus proof of current E&O Insurance – to reactivate. Perhaps a bigger concern is the lapse in your policy; carriers vary in their policies as far as whether or not a lapse or break in your coverage affects your benefits. For example, if you let your policy lapse this year and have 30 days of no coverage before CREC catches you in February, your insurance company may not cover an offense that pops up from your past. Be sure to inquire with your insurance carrier if you have concerns. And of course it goes without saying – NEVER forge your E&O Insurance certificate! The consequences are terrible, yet CREC has found offenders for the past two years.
The end of 2010 also reminds us to prepare for an abundance of growth and opportunity in 2011! Be sure to make education one of your goals; check out the list of upcoming classes from The Real Estate School in Northern Colorado. Have a safe and Happy New Year!