Types of Real Estate Insurance in Alaska
There are 3 main types of insurance for real estate:
Although errors and omissions insurance is not mandated by Alaska, E&O insurance is often required by another authority such as your real estate franchise or bank partners. Regardless of whether it is actually mandatory, common sense or past experiences often make signing up for errors and omissions insurance in Alaska an obvious choice.
Errors and Omissions Insurance in Alaska
Just as the name would suggest, errors and omissions insurance covers errors and omissions made by real estate professionals working on behalf of a real estate brokerage. Specifically, E&O typically covers situations like not disclosing relevant information about the property, or not showing a property to a prospective buyer to even bodily injury or damage that could happen during a showing. In general terms, broadform E&O policies protect both the brokerages and individual real estate agents if they’re sued by a client because of a mistake they’ve made related to transactions in real estate.
Errors and omissions insurance for real estate often covers defense costs, legal costs, and court costs related to a claim.
Cyber Liability Insurance for Real Estate in Alaska
Cyber Liability Insurance for real estate is a relatively new type of insurance policy in Alaska that is designed to protect businesses from both 1st and 3rd party risks associated with cyber attacks and fraud. Real Estate professionals are a prime target for these types of attacks, because real estate deals involve complicated, multi-party, high value transactions and sensitive personal data.
First party Cyber Liability policies cover the real estate agent directly and include things like Cyber Extortion, Electronic Transfer Fraud, Deceptive Funds Transfer, and Telephone Tolls, to name a few. Direct coverage is important, but from what we have seen are rarely the reason why real estate professionals decide to purchase cyber liability policies. It’s the 3rd party protection that is usually the consideration, because that coverage would protect the vendor/partner or clients and in real estate deals, this is where the majority of the money is.
General Liability Insurance for Real Estate in Alaska
General Liability Insurance or business liability insurance is a common type of coverage in any industry that protects businesses from claims resulting from normal business operations not specifically related to the real estate industry.
Specifically, General Liability Insurance in Alaska will cover personal and advertising injury, damage to properties that are rented to your business, as well as, bodily injury or medical claims, and other common business liability exposure.
Alaska real estate E&O — frequently asked questions
Does Alaska require real estate agents to carry E&O insurance?
Yes. Alaska requires every licensed real estate broker, associate broker, and salesperson to carry and maintain E&O as a condition of licensing under AS 08.88.172. The Alaska Real Estate Commission sets the terms by regulation — not less than $100,000 per claim and $300,000 annual aggregate per licensee, a deductible no greater than $5,000, and a 90-day extended reporting period. Licensees certify coverage at issuance and at each renewal, through a Commission master policy or independent coverage. PBI Group writes Alaska brokerages through a Palomar-backed program admitted in AK.
Who regulates real estate licensees in Alaska?
The Alaska Real Estate Commission regulates licensure, continuing education, agency-disclosure rules, and disciplinary action against real estate professionals in Alaska. Complaints typically go through a formal investigation process; serious violations trigger fines, suspensions, or license revocation. E&O insurance defends the civil-side exposure (consumer lawsuits, transaction disputes); regulatory fines remain personally owed by the licensee.
What are the most common E&O claims against Alaska real estate agents?
Across every state, the top E&O claim categories are: (1) failure to disclose material property defects, (2) agency-disclosure failures (especially undisclosed dual agency), (3) misrepresentation of property condition or features, (4) trust-account / escrow mishandling, and (5) contract-execution errors (missed deadlines, miscompleted contingencies). Alaska-specific exposure depends on the state's disclosure regime, the local plaintiff's bar, and the metros where your firm does business. PBI Group writes a policy form built around the actual claim categories Alaska brokerages face.
What is the cost for E&O real estate insurance in Alaska?
A Alaska brokerage can generally expect E&O real estate insurance to cost about $2,000–$3,000 per $1 million in revenue with no claims on record. Your premium is subject to claims history and other factors, so the exact number depends on your specifics.