TEXAS

Real Estate E&O Insurance in Texas.

Texas doesn't require every agent to carry E&O — but most brokerage firms do have to, and the Texas market enforces the rest. Flood disclosure after Hurricane Harvey, mineral-rights questions across the Permian Basin and Eagle Ford, and the country's highest transaction volume all raise the stakes. PBI Group writes Texas E&O built for the state's real exposures, backed by a policy form that keeps defending you when a claim hits.

Texas requires E&O for most brokerage firms, and the market enforces the rest — flood disclosure, mineral-rights questions, and the country's highest transaction volume. PBI Group writes Texas E&O through a Palomar-backed program admitted in TX, built for the state's real exposures. Right coverage, right price.

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Types of Real Estate Insurance in Texas

There are 3 main types of insurance for real estate:

Although errors and omissions insurance is not mandated by Texas, 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 Texas an obvious choice.

It is always a pleasure to work with PBI Group to obtain my real estate E&O insurance for my Texas agency. Mr.

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Paul Bondy is very knowledgeable about the products and our company, assists me every time I call, and prompt in handling any and all issues. He, along with PBI Group, makes my job much easier.

I've had E&O coverage for my multi-office Texas real estate company with the same insurance provider for the past 8 years.

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Insurance is one of those services you really don't shop around and compare as long as your premium stays about the same as the year before. I am glad I did because PBI Group saved me thousands of dollars with better coverage than I was getting from my previous insurance provider. And they do this with great personal service.

Chris Dittes takes great care of us every year and also throughout the year. Chris always answers my calls on the first try.

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I depend on his knowledge of real estate E&O insurance to guide us through any issues or problems. In over 30 years in the business, I would say he is one of the best in his field.

Considering using PBI Group? As a client of Paul Bondy for several years, the first thing I would tell you is that Paul does what he says he will do.

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He has worked diligently to provide me with the kind of E&O that I want. He also takes the time to discuss what various policies provide, and to explain the clauses and what they mean to my company and my agents. I think his service goes above and beyond the service I have received from many of the other E&O providers I have used during my 34 year real estate career. I can enthusiastically recommend Paul Bondy

As Office Manager, it is my duty to sort out all things insurance for our Texas office.

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Paul Bondy with PBI Group is always available to answer my questions and review our E&O insurance coverage needs. He has even done so late on a Saturday evening. Working in Real Estate I appreciate that someone else is keeping the same hours I do. This year when our Cooperate offices rolled out another insurance partner we could go through I asked Paul about it. Paul gave me all the information he could find and then said, hey ask them to quote you a policy and then I will walk through it with you to make sure the coverage is what you need. I appreciate his integrity and the way he focuses on the needs of our office.

Paul and his team at PBI Group have been so amazing to work with! Their response time, attention to detail, customer care, and fair pricing are why we choose

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to do business with the PBI Group for our E&O Insurance. I wish we had gotten into business with them sooner as we would have been saving money sooner.

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Texas real estate E&O — frequently asked questions

Is E&O insurance required in Texas?

For most brokerage firms, yes — if the designated broker owns less than 10% of the business, TREC requires the firm to carry at least $1 million in E&O, with proof at renewal. Individual agents and sole proprietors aren't required to, but franchise and lender requirements make it effectively necessary.

Does the Texas recovery fund work like E&O insurance?

No. The recovery fund reimburses consumers a small amount (after a final judgment, for licensee-violation claims only) — it doesn't pay your legal defense or cover non-licensed claims. E&O is what actually funds your defense when you're sued.

How much does Texas real estate E&O cost?

Individual coverage averages around $90/month; firm coverage with $1 million-plus limits typically lands in the $385–$900/year-per-agent range depending on your metro, transaction mix, and claims history. Houston (flood) and West Texas (mineral rights) tend to run higher.

What are the most common E&O claims in Texas?

Misrepresentation, disclosure failures (condition, property taxes, and post-Harvey flood history), mineral-rights questions, agency/intermediary disputes, and roof/hail-damage condition issues. Defense costs are usually the largest expense, even when the agent did nothing wrong.

Does an 'as-is' clause protect the seller and agent in Texas?

Only against problems nobody knew about. An 'as-is' clause doesn't waive liability for a defect that was known and not disclosed — those still become claims, often pleaded as fraud. A well-written E&O form keeps defending the negligence side of that kind of claim.

What policy limits should a Texas brokerage carry?

At least the $1 million firm requirement as a baseline, with defense costs paid outside the limit so a long mineral-rights or flood case can't exhaust your coverage before it settles. Commercial, high-volume, or high-exposure firms should carry more — we'll size it with you.

What drives E&O claims in Texas

A plain-English look at what actually triggers real estate E&O claims in Texas, how the local market shapes premiums, and how our policy form responds. Click any section to expand.

Is E&O insurance required in Texas?

It depends on how you're set up. Individual agents and sole proprietors aren't required to carry E&O. Most brokerage firms are — if the designated broker owns less than 10% of the business, TREC requires the firm to carry at least $1 million in E&O coverage, with proof filed at renewal.

There's also a common misconception worth clearing up: Texas runs a consumer recovery fund that can reimburse clients a small amount after a final judgment. It is not your insurance — it doesn't pay your legal defense and doesn't cover non-licensed claims. The defense, which is the most expensive part of any dispute, is exactly what E&O is for.

What actually drives E&O claims in Texas

The recurring claim drivers for Texas agents and brokers:

Misrepresentation of condition, price, or value
Disclosure failures — seller's condition, property taxes, and (post-Harvey) flood history
Mineral-rights questions on West and South Texas transactions, which can produce very large claims
Agency / intermediary disputes (Texas's broker-as-intermediary structure is unique and easy to get wrong)
Roof and hail-damage condition disputes — Texas leads the country in hail losses

Most are professional-judgment claims, and the legal defense is usually the single biggest cost — even when the agent did nothing wrong.

How PBI's policy form answers a Texas claim

Two policies with the same limit and price can respond in completely opposite ways to the same claim. PBI Group's form is written to be broader exactly where Texas claims land:

Defense costs are paid on top of your limit, so a multi-year flood or mineral-rights fight doesn't eat the money you'd use to resolve it.
A fraud allegation doesn't end your coverage. Texas 'as-is' disputes are often pleaded as fraud alongside negligence — the form keeps defending the negligence side until the facts are actually decided.
Property management work is covered as a real estate professional service, not carved out.
Bodily-injury claims tied to your professional work can be covered, where standard forms exclude them outright.
Extra support when you need it — subpoena assistance, license-defense help, and pre-claim guidance.

The wording is the product.

What Texas coverage should look like

For most Texas firms we recommend limits at or above the $1 million firm requirement, defense costs paid outside the limit, and the add-ons that match local exposure: flood and coastal coverage, mineral-rights coverage for West and South Texas, roof/hail-disclosure coverage in the major metros, and short-term-rental coverage in the Hill Country and Galveston markets. Commercial and high-volume firms should carry more. The state recovery fund isn't a substitute — it pays a small amount to consumers after the fact and does nothing for your defense.

You'll be surprised how affordable the best can be.

Let PBI Group get you a quote — no fluff, no pressure, just a fair price for strong coverage.

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