PERSONAL LINES
5 QUESTIONS TO ASK EVERY PERSONAL LINES CUSTOMER THIS YEAR With continued pressures from the coronavirus pandemic and changing weather patterns following us into 2022, scheduling meetings with your personal lines customers may be more important than ever. Whether it's reviewing relevant life changes, understanding how the pandemic has impacted individuals and families, or simply discussing coverages they may need going forward, an annual needs assessment is a great opportunity to showcase the experience and value your agency brings to your customers. As you prepare for these conversations, here are five questions you should plan on asking: 1) Have you made significant improvements to your home or are you planning to? The Hanover's 2021 “Home Renovation Report" found nearly 70% of homeowners had plans to improve their homes over the next year. That's not surprising, given the increasing amounts of time people have spent at home due to COVID-19. As a result of the pandemic, many homeowners added study spaces for remote learners, offices for remote workers, updated family rooms, expanded outdoor gathering spaces and more. These kinds of upgrades—in addition to kitchen or bathroom renovations, installing a deck, building an addition, finishing a basement or updating a cooling system—can all impact insurance coverage needs. Significant home improvements should prompt homeowners to reassess the coverage A limit of their homeowners insurance policy. The report found of those who made major home renovations during the pandemic, 40% failed to contact their insurance agent to ensure their coverage reflected the home's updated value, making it important you proactively ask your clients about any changes. 18 | APRIL 2022 |
wisconsin INDEPENDENT AGENT
This also is a good time to ensure the home is covered at its replacement cost. Should it ever be a total loss, most homeowners will want to be insured for the cost to rebuild. This is especially true given the recent increase in labor and material costs. With an increase in a home's replacement cost, agents may want to consider whether a customer should be moved to highvalue home insurance protection. Coverage designed for customers with more complex insurance needs can offer more value, added benefits and customized protection. Beyond coverage A, homeowners may consider other coverages as well. For example, they may contemplate equipment breakdown coverage if appliances were upgraded, including water heaters, security systems, refrigerators, central air conditioning systems and more. This coverage can potentially address costly repairs or replacements that may be needed if those systems and appliances were to fail. 2) Are you working out of your home, have started a home business or are renting your house? There are 31 million small businesses in the U.S. and more than half are homebased, according to the U.S. Small Business Administration—and during the pandemic, more are setting up shop than ever before, leaving many of them open to financial risks not covered under standard homeowners policies. Whether it's a business with foot traffic located within a primary residence, inventory stored at the home or a business that simply requires liability protection, there are several options to help protect these homeowners.
