For most agencies, personal insurance has become very different in the past few years. With the downturn in the economy and competition as fierce as ever, it is increasingly difficult not only to find new business, but also to hold on to existing customers. People are shopping. So how do we hold on to our customers and find new business? One solid answer is account rounding.

Most people do not properly insure the toys–motorcycles, boats, jet skis, all-terrain vehicles (ATVs), snowmobiles, recreational vehicles. Providing your customers the proper advice and coverage may not only add to your bottom line and retention rate, but can enhance your reputation as well.

Some common toys are often not thought of much from an insurance point of view, particularly the little things. ATVs, dirt bikes, snowmobiles and mopeds are probably the most widely overlooked. These vehicles can be quite a big risk due to their high liabilities and medical payment exposures. It often is assumed that coverage is provided under the insured's homeowners policy. Although homeowners policies can provide some liability coverage, they are typically very limited on who and what they cover.

HO endorsement not enough

At times, endorsements may be added to a homeowners or automobile policy to extend coverage to offroad vehicles. While these endorsements will include an additional premium and do not always offer the best coverage, this is one way to go to provide more coverage to your clients at the lowest price. Endorsements to a homeowners policy can provide additional liability for these vehicles. While this may be a quick, cheap and easy option, it still leaves gaps in coverage, such as medical payments, physical damage and restrictions on who and what is covered. Also keep in mind, if a vehicle is subject to motor vehicle registration, it cannot be covered at all on a homeowners' policy.

A slightly better option, especially for snowmobiles, is an endorsement to an automobile policy. Adding most ATVs to an auto policy as an endorsement provides better coverage, but can have some negative effects on the auto policy itself. For example, deductibles may be increased on the policy and liability coverage may be eliminated for other persons or organizations. Significant gaps in coverage typically exist, with the exception being for snowmobiles. A snowmobile endorsement added to an auto policy usually offers much more comprehensive coverage. This will provide your customer with most of the typical auto policy coverages for their named snowmobiles.

Despite the many options to provide coverage for these smaller toys, in nearly every case the best and most complete coverage is provided through a separate specialty policy. Many insurance companies who write motorcycle insurance also will have stand alone policies for all of these off-road vehicles. There are several excellent companies that have specialized programs for motorcycles and other toys such as American Modern Insurance Group, MetLife Home & Auto, Progressive, Foremost and Travelers. The coverages on these polices are similar to an auto policy, but are tailored to the specific needs of the vehicle being covered. So if you can convince your insured to purchase this type of policy, it clearly offers the best protection. However, if your insured insists on keeping these toys on his homeowners' or auto policy, you still have options to offer them additional coverage while keeping them happy and improving your agency's retention.

On land and on water

While most boat owners who have made significant investments in their boats know that they need insurance and want to protect their investment, what about jet skis and other similar personal watercraft? These are toys that provide a significant risk but often slip through the cracks. As with ATVs, there is a very limited amount of liability coverage available through a homeowners policy for personal watercraft. However, considering the risk involved, this should not even be an option mentioned to your customers who own jet skis or other personal watercraft.

Liability and medical payments is the most important coverages to provide your customers who own jet skis. Simply put, the risk of injury on these watercrafts are very high. Even if the insured is not concerned about physical damage to the jet ski itself, liability and medical payments coverage is very important. It is not a bad idea to include comprehensive and collision, especially if the watercraft is brand new or has a high value. In many cases, coverage for a trailer is needed, too, and can be added to a jet ski or personal boat policy. The coverages on jet skis, and pretty much all personal watercraft, is very similar to an auto policy. Companies such as SkiSafe, American Modern and Foremost have a specialty policy just for jet skis, and if that is the only coverage your customer needs, this type of policy may be the best and easiest way to provide the proper coverage.

Jet skis also can be properly covered with a regular boatowners policy. When writing just a jet ski, it is usually easier to use a specialty jet ski policy, but in the case where a customer has a boat along with one or more jet skis, it is easier and more convenient to cover them all under the same personal boat policy. Boatowners policies are typically standard, just like an auto policy, but can be customized to fit the client's specific needs. They can be based on actual cash value or replacement value, sometimes even declared value. The size, type and value of a boat, and whether it is a power or sail boat, are huge factors in the amount of coverage needed, as well as the premium. And once you get into large boats, usually 26 feet or more, a yacht policy will be needed.

When you get into yacht policies, you will be looking at many of the same types of coverages as a personal boat policy. However these get much more detailed and break down the coverages in a more specific manner. Because of the specialized nature of this type of policy, it is important to work with companies that are accustomed to dealing with this kind of exposure such as Travelers, Progressive and Foremost. Unless an agency writes these on a regular basis, it is best to get the advice of the experts at the companies who offer these policies.

Motorcycles and more

Motorcycles are the most common toy agencies will come across. It used to be more difficult to write motorcycles, but today, it's hard to get through a day without coming across some type of advertising from direct writers of motorcycle insurance. For the independent agent, having companies such as Progressive, American Modern, Travelers and MetLife is very important to compete in this market. Motorcycles are not difficult to write since a motorcycle policy is almost the same as an auto policy, although there are a few thing to be aware of. For example, it is possible to purchase seasonal coverage if the bike is not used in the winter. If the insured tends to ride with a passenger, the passenger is not always covered. Ensure the policy includes adequate guest liability is important in that case. There are also several discounts available to motorcycle riders with good driving record, completing a motorcycle training course, multiple-bike discounts, and claim-free discounts.

For RVs and motorhomes, although some coverage can be added to homeowners' or auto insurance, that is simply not going to provide the needed coverage. A typical RV policy will offer liability, personal effects coverage for lost or stolen property, tow dolly/hitch coverage for hauling a car or truck behind the RV, campsite/vacation liability, comprehensive and collision coverage, towing, emergency expense coverage for temporary living facilities, and medical payments coverage. In many cases, replacement cost or purchase price coverages are available. An RV policy can also be adjusted based on the value of the contents typically kept inside of the vehicle.

The big direct writers are advertising hard to insure people's toys. Now is the time to go after this type of business before someone else gets their foot in the door with your customers.