Property Management
What is 'professional liability insurance' (E&O insurance) for Idaho property managers?
AInsurance covering physical damage to managed properties
BInsurance protecting property managers against claims of negligence, errors, or omissions in the performance of professional duties✓ Correct
CWorkers' compensation insurance for maintenance staff
DInsurance required by Idaho law for all property managers
Explanation
Errors and Omissions (E&O) insurance protects property managers and real estate professionals against claims arising from professional mistakes — such as failing to properly screen tenants, missing lease renewal deadlines, or mishandling security deposits. While not legally mandated in Idaho, E&O insurance is strongly recommended for professional risk management.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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