Agents Should Encourage Clients to Keep Tabs on Their Home Insurance

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  • These days, many consumers might be a little concerned about the issues that can arise if they need to file a home insurance claim, simply because they aren’t completely familiar with what their policies do and do not cover. As a consequence, this might be a wise time for insurance agents to start doing a bit more to educate their clients about the policies in question, and explain why adding or changing certain types of coverage can go a long way toward ensuring more peace of mind.

    Data shows that consumers who have been wary of taking on additional insurance costs in their lives might actually be putting themselves at risk by under-insuring their properties, according to a report from Fox Business. Many have plans that will cover only certain types of problems, and that can create major deficiencies in coverage. Most only make sure homes’ structures and contents are protected, plus liability coverage in case of an injury or death on the property.

    “When you think of those three coverages, you want to make sure that you’d be put back in the same position if you suffered a loss,” Kevin Noles, product manager at a major insurer, told the news agency. “If you had to rebuild your house because of a fire or otherwise, you want to make sure you have full replacement cost coverage for your house. Your insurance company can explain what coverage you have and that you have the right balance between a high enough deductible to save you money and low enough that you’ve the money to pay your deductible.”

    What needs to be done?
    As a consequence of these issues, experts say that agents may need to do more to ensure their clients understand their plans, the report said. That way, when gaps in coverage are found, customers might be able to make more informed decisions about what they’re going to do going forward.

    Agents who can strike a good balance between providing high-quality customer service and also finding their clients the occasional discount will likely see the most success in the industry going forward. Studies show that consumers actually prefer the former to the latter when given the choice, and thus, having more assurance that their coverage will better take care of their needs might go a longer way than simply being able to save them a few hundred dollars annually.