Cost of E & O insurance

[johnN]

Condos are a particularly difficult deal. A friend in Reno was approched by one of the national builders to buy some of his land for a condo project. $600K sell.
Even this giant company, he found out, was budgeting $30,000 per unit for insurance coverage against owner lawsuit. As opposed to 5K for a single family home. Having owned some condo investment properties, I can first hand tell you that the owners think that when they buy -all expenses are covered by their fees, they never read the CC&R document, and when things need maintainance they sue the builder/ designer etc. The cost of litigation is so high they almost always settle. One of my neighbors is a "forensic Architect" (LOL) he has made millions trumping up defects. The advice is to stay away from condo projects unless all the drawings appear on the builders title block and you are covered by his insurance. Even then think twice.