Question 1

Do Texas real estate agents need E&O insurance?

Accepted Answer

While TREC doesn't legally mandate E&O, most brokerages require it as a condition of affiliation. E&O protects against claims of negligence, misrepresentation, failure to disclose, and contract errors. The average E&O claim against a Texas agent costs $15,000–$50,000 to defend and settle. Individual agent E&O costs just $500–$1,500/year — a small price for protection against career-ending lawsuits.

Question 2

How do I protect against real estate wire fraud in Texas?

Accepted Answer

Real estate wire fraud has increased 300% since 2020, with Texas being a top target. Cyber liability insurance covers wire fraud losses, but prevention is key: verify all wire instructions by phone (using a known number, not one from an email), use encrypted email for sensitive documents, and implement multi-factor authentication. A good cyber policy costs $1,000–$3,000/year and covers social engineering fraud up to $250,000–$500,000.

Question 3

What insurance do Texas property managers need?

Accepted Answer

Texas property managers need E&O ($1M+), general liability ($1M/$2M), commercial property (for owned/managed buildings), workers' comp (for maintenance staff), and cyber liability (for tenant data protection). Fair housing liability coverage is also important — discrimination claims can cost $50,000–$200,000 to defend. Total insurance costs for a mid-size TX property management company: $10,000–$30,000/year.

Texas Real Estate Insurance | RISKX