Homeowners see TV commercials every day suggesting that is the case for anyone who buys coverage with a certain company. It all seems so quick and easy. All you have to do is make one phone call or spend 15 minutes on a computer and all your troubles are solved. Hassle free. Everything covered—no questions asked. It's just that simple, right?

Related: Read the article “Go Above and Beyond” by Jeffrey R. Wyrsch.

Now let's come back to earth. It's hard to fathom the extent of catastrophes Americans have had to face over the past few years. We have all experienced the force of Mother Nature in some form or another. Record claims resulting in increased premiums have been incurred by just about every insurer providing policies in the U.S. Rain, floods, lightning, hail, forest fires, drought, snow, ice, sinkholes, earthquakes, tornadoes, hurricanes, mud slides. 

 This list doesn't include man-made claims such as fraud, identity theft, robbery, arson, negligence and accidents. Agents have to ensure that their clients are covered for whatever surprise they have to deal with.

Many articles address ways an agency can deal with surprises, but you can never hear or read enough. Outlines agencies can use in their plans to avoid surprises should include:

1. Checklists
2. Face-to-face meetings
3. Inspections
4. Communication
5. Reviews
6. Rewrites.

Most E&O classes and advisories bring up the use of checklists—and for good reason. A well thought out, precise personal lines checklist easily spells out all of the questions producers and CSRs should be asking.

Ideally your checklist also will include checkpoints for forces of nature in your region, i.e., hurricanes in coastal regions, mudslides/snow in mountainous areas, floods in river regions. A universal checklist with personal touches addresses potential issues. Input from producers, CSRs and claims reps who deal with surprises firsthand is essential.

Face-to-face meetings with both prospective and existing clients are paramount for the clients to understand what they need to insure and for a comprehensive explanation of the terms and conditions of their policies. It is difficult to fully outline regional and local insurance perils via an online questionnaire or from nationwide service centers where the reps know little or nothing about the region you are in. This is an advantage for local agencies, which can meet with clients one-on-one to explain the policies and coverages and have clients acknowledge their understanding with signatures and handshakes.

Related: Read the article by Jeffrey R. Wyrsch “Understand Gen Y.”

A visual inspection enhances understanding of a homeowner's needs. An inspection includes confirmation of square footage, amenities, pets and condition of the building and surrounding area. Obtain a survey from the client for precise measurements to ensure property values. An agency employee walks the property, takes measurements and photos and issues a written report. We often find out for the first time about swimming pools, trampolines, dogs and unfavorable conditions from these reports. Several of our companies even accept these reports in lieu of their own.

Ideally, communication with the client does not end with the initial face-to-face meeting. Ongoing communication helps prepare a homeowner for surprises that may lie ahead. Any form of communication is better than none—updates via specific personal lines newsletters, postcard/letter direct mail campaigns, infomercials in local papers, spot radio/cable TV ads and presence at local business, homeowner or senior expos help alert homeowners to talk with you about their policies.

A face-to-face meeting with a homeowner is ideal. There's no better way to prepare a homeowner about what is happening with his insurance. It is better to prepare clients for rising premiums in person rather than springing the surprise when they receive their policies. 

Mail postcards to personal lines clients advising them it is time for a check-up—similar to what doctors/dentists send out.  Separate flyers in each renewal notice highlight what is happening in the insurance arena.

Invite clients to come into the office to review and update their information to determine if policies should be revised  or rewritten. The worst-case scenario is to increase or decrease coverages to save the client money. Either way, the client is the winner.

Rewriting a policy in today's climate is not always the answer, but attempting to save money can help cement the relationship. Clients are more loyal if they know you care. It is easy to assume homeowners know what their coverages and deductibles are, but that is often not the case.

Eliminate surprises. Let your clients know what they have, what they need and how they can save money while enhancing their coverage. It may seem unnecessary for an agency to continually offer these checkpoints, but it is invaluable when Mother Nature's wrath pays a visit.