PI fears 'rife' among valuers - Professional Indemnity Insurance for surveyors

09/10/2008

Individuals who provide valuations in the property market are living in fear of a plethora of Professional Indemnity (PI) insurance claims arising, it has been claimed.

Property investment news provider Assetz notes that those who take on the task of valuing a domicile are likely to face criticism if they fall either side of the mark.

Should they under-value a property due to excessive caution, the "unfortunate seller" is likely to receive offers below the home's market price.

But if the valuer adds an excess to achieve a higher sale price, they could face being sued by the lender which provided the mortgage for the purchase.

"PI legal claim fears are rife in the valuer market at present," the news provider asserts.

PYV Associate Director Professions Division agreed that the current state of the property market has indeed led to very challenging times for Surveyors: "The Professional Indemnity Insurance market for practitioners carrying out S&V work has already become difficult with many insurers either declining to offer quotations for the business or significantly increasing rates. The last few years have seen a soft market with competition between insurers and falling premiums; it appears that those days are well and truly over."

The Royal Institution of Chartered Surveyors, which represents the interests of property valuation providers, reported earlier in the year that a changing market poses particular problems for practitioners.

In order to appease PI insurers, members were told to know their limits rather than to "plunge straight in" to valuations without forethought.

Click here for more information on Professional Indemnity Insurance.

PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2008 Adfero Ltd.

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