But there are other significant liabilities around every RE transaction where being the agent and owner/Seller increase your liability and those have primarily to do with inadequate disclosure to the Buyer of know adverse material conditions of the home from neighborhood nuisances like noises, to improperly completed repairs, to occasional issues with water, etc... As a professional, the standard for knowledge of such issues and therefore disclosure would be higher, and what ever the cause or case, where as typically a home inspector or the Realtor you hired might act as a "buffer" in the case of a legal matter arising, now as a Realtor selling your own home, you've lost that "buffer".
The above is all good news if you are the Buyer asking this question because you have a Realtor selling or who sold their own home on the other side of a transaction that's got some possible legal issues.
As others have said, the issues are complex and answers will vary based upon many specifics including the specific E&O policy. But I hope the above principals help shed some additional light on the legal forces at play when a Realtor represents themselves in the Selling or the Buying of their own home.
Stu & Davlyn
Often, agents wanting to sell their own home will just allow the home to be listed under the name of another agent in your office as this typically satisfies the E/O provider's coverage concerns.