FREA drops Group Discounts

I had that suspicious feeling that FREA would lure me into insuring with them at an affordable NACHI group discount rate for the first year, then (after they baited the hook) they would raise their premiums.

Just to inform everyone, FREA has raised my annual E & O insurance premium approx. $500.00. I’m sure all FREA insurers will notice their increases when it comes time to renew for 2006.

That’s not all… they also raised the WDI/WDO coverage from $250.00 to $495.00. Must be nice to raise rates whenever they feel like it.

They did decide to lower the $2,000.00 deductible to a $1,000.00 deductible.

Typical Insurance firm…

Nice… real nice.

Guess who’s laughing to the bank while you’re crying to yours?:roll:

That’s pure BS and they know it.

I’d place good money on it that no other real estate related E&O went up. Its still staying at a cool $345.00 per year.:twisted:

$345.00 per year.

There’s no way you’re getting E & O for $345.00 per year!

From who?

I’m talking about Appraisers and agents…
Sorry for the confusion.

Okay bend over! :frowning:

I changed my E&O coverage on 1/6/06 from FREA to Towers & Perrin to save a few hundred dollars for the association discount.

So what happens. I receive my first summons and now I have to pay the deductable of 2500. If I would of stayed with FREA I would only have to pay the 1000.

So far I have not received much support from Towers or attorney Joe F.

I am quite disturbed by the whole situation.

I have gone out and purchased a large supply of KY. Because I am getting screwed.

The judicial system sucks. You pay for E&O and what are you really getting. Win or lose you still pay.


I’m currently with Allen ins. doing some shopping, FREA $300.00 higher, Towers & Perrin about $400.00 cheaper but waiting on some questions from them.

Been happy with Allen.



If you need any assistance with ideas or letters, drop me an email with the details.

I’ll let my term run out, then I’ll switch. FREA stinks. It is way too much money for any type of insurance. I think they are scam artists and less than human too. They nailed me for $3850.00 for my 1st year. Pain in full. Oops, paid in full. Over 10,000 inspectors in NACHI, and nobody likes FREA. Will they care?


Errors and Ommissions = HI bend over and let the wood get put to ya!!

It’s getting disgusting… lack of competition basically. They can charge what they want…

I cannot even think about it without getting more and more p-o’d

Collectively… and i know there have been efforst made… but if the insurance companies were almost guaranteed 3-5000 policies (more outside of nachi) you would think they could come in with a decent policy…

I know Canadian inspectors who have been with Frea and some have not renewed with Frea, or will not renew once their current policy is up.

Insurance regardless of the provider is overpriced big time!

I know we would all love to see this idea put into action, but I think some realism is needed.

Insurance companies are only in this to make money. That is the entire scope of concern they have in providing this service. As real estate prices escalate, and more inspectors get into the field with less experience, I can’t see any other alternative but for insurance companies to raise rates since it has to be expected that lawsuits and amounts of awards will rise accordingly.

It is just a simple business decision.

Of course, I think that there should be some significant discounts for experience, training, years without a claim, etc. - the same way you get discounts for auto for safe driving, years without claims, etc.

This may be the case, but I haven’t noted it yet…

What is good about having E&O insurance is my customers pay for it. I just write a check to the insurance company once a year after my customers have paid me already.

If I was negligent enough not to have it, I would lower my inspection prices accordingly.

I will keep letting the customers pay for it.

Now that everyone’s back from the Convention…


Hi everyone,
Yes, I know that paying for E and O sucks, but if you have assets and a home, there is no other option… I presently have Allen’s, and checked out FREA in the past… FREA is not discounted anymore, and its a rip off! I would rather go with Allen’s…

However, STATE FARM is an option! I am still awaiting my quote, but I do know that there General Liability is only $250 a year!!! Half the cost of Allen, and less than FREA… I am still waiting on my quote for E and O, so as soon I know I will inform everyone.

Does anyone out there have policies with STATE FARM, let us know your results?!?!?!?


After all I read about Allen Insurance being cheaper, I was curious and decided to contact them by phone. I just spoke to a representative and she quoted me an E & O figure over the phone.

I told her what type of insurance I have presently with FREA and asked her if she could beat FREA’s proposal. She came up with a dollar figure of (believe it or not) the same exact figure that FREA has proprosed.

So my choice is obvious…

Exact same figure?

Gee, no collusion there eh? :roll:

Yea, the Conclusion is called “PRICE FIXING!”

It’s all a huge frigin scam.

You’d think they would offer a slight discount on an annual basis, if you had NO Claims against you.

I sent my check (over $4,000.00) and now I’m broke. Well, the kids will be eating macaroni & cheeese for the next three months.