Mortgage field inspectors serve an important function in the lending and real estate industry. They visit properties on behalf of banks, mortgage servicers, and investors to assess conditions, verify occupancy, and document the status of real estate assets. The work takes you to all kinds of properties in all kinds of conditions, and that means real risk. The right insurance is intended to help protect you when things do not go as planned.
This guide covers the types of insurance coverage that mortgage field inspectors may want to consider.
Why Mortgage Field Inspectors Need Insurance
Mortgage field inspectors frequently visit vacant properties, properties in foreclosure, and homes that may be in disrepair. You may encounter unsafe conditions, aggressive animals, or confrontational occupants. Your work involves driving frequently, often through multiple properties in a single day. And because you work under contract for financial institutions and field service companies, there are usually specific insurance requirements you must meet before you can be assigned work.
Most national field service management companies require mortgage field inspectors to carry specific types and minimum amounts of insurance before assigning inspections. Being properly insured is often a condition of working with the largest clients in the industry.
Types of Insurance That May Be Relevant for Mortgage Field Inspectors
General Liability Insurance
General liability insurance is typically required by the companies that assign mortgage field inspection work. It is intended to provide coverage for third-party claims of bodily injury or property damage. For example, if someone is injured on a property you visited, or if your actions are alleged to have caused damage to a property, general liability insurance is intended to help cover the costs associated with those claims.
Errors and Omissions Insurance
Errors and omissions insurance, sometimes called professional liability insurance, is one of the most important types of coverage for mortgage field inspectors. It is intended to provide coverage if a client claims that your inspection report was inaccurate, that you missed something important, or that your work caused a financial loss. Mistakes in inspection reports can have real consequences for lenders and servicers, and a claim against you could be costly without this coverage in place.
Many national inspection clients specifically require errors and omissions insurance with minimum limits before they will work with an inspector.
Commercial Auto Insurance
Mortgage field inspectors spend a significant portion of their working hours driving. If you use your personal vehicle for inspection work, your personal auto policy may not provide coverage for accidents that happen while you are on the job. Commercial auto insurance, or a business use endorsement added to your personal policy, is intended to help fill that gap.
Many inspectors assume their personal auto policy will cover them while driving to inspection sites. This is not always the case. Check with your insurance agent to make sure you have the right coverage for business use of your vehicle, especially if you are driving to multiple properties each day.
Workers Compensation Insurance
If you have employees or hire helpers to assist with inspections, workers compensation insurance may be required in your state. It is intended to provide coverage for medical costs and lost wages if an employee is hurt while working. Even if you operate as a sole proprietor, some field service companies may require you to carry this coverage as a condition of their vendor agreements.
Inland Marine or Equipment Coverage
Mortgage field inspectors often rely on cameras, tablets, and other electronic equipment to document property conditions. Inland marine insurance, sometimes called equipment floater coverage, is intended to help protect those items from theft, damage, or loss while away from your home or office.
Keep copies of your certificates of insurance up to date and accessible. National field service companies often require you to submit proof of coverage on an annual basis, and having an expired certificate on file can cause you to lose work assignments.
What Affects the Cost of Mortgage Field Inspector Insurance
Insurance premiums for mortgage field inspectors can vary based on factors such as the number of inspections you complete each year, the states where you work, your claims history, and the types of properties you inspect. Inspectors who cover a large geographic area or visit a high volume of vacant and distressed properties may face different pricing than those who inspect a smaller, more defined area.
Get a Quote for Your Inspection Business
If you are ready to find out what insurance may cost for your mortgage field inspection business, the next step is getting a quote. Having the right coverage in place protects your business and helps you meet the requirements of the clients you work with.
Get a Small Business Insurance Quote
Final Thoughts
Mortgage field inspection is a detail-oriented profession that carries real risk, from the properties you visit to the reports you submit. The right insurance is intended to protect you from the financial impact of claims and help you maintain the professional standing your clients expect. Working with an independent agent who understands the inspection industry can help you find coverage that fits your business and meets your clients’ requirements.