Three ways to enhance client value in 2020
Here are a few tips to help agents, brokers and carriers hold themselves accountable to clients in the new year.
‘Tis the season, which means resolutions are right around the corner on perhaps such commitments as eating healthier, growing as a professional, or simply spending more time with friends and family.
Whether or not individuals end up keeping their resolutions, such promises allow us all to head into the New Year optimistic and committed to being our best selves.
In the spirit of these resolutions, I’d like to offer my own. It’s not a new one, but rather a renewed commitment to helping independent agents and brokers provide exceptional value to our shared clients.
How can we — agents, brokers and carriers — hold ourselves accountable to this resolution? Here are a few tips to keep us on-track.
No. 1: Focus on the fundamentals
According to a new survey by Chubb, 89% of homeowners report being “very” or “somewhat” confident in their ability to check for possible damage or maintenance issues around their homes. In fact, 55% even say they are vigilant about taking home protection measures.
Unfortunately, however, the best of homeowner intentions don’t always translate into the most impactful measures being taken to limit damage to their homes. Consider the fact that when it comes to internal water damage — the most common source of property damage — the majority of homeowners remain unprepared. The same Chubb survey, for instance, found that less than 20% of homeowners check appliance hoses, perform water heater maintenance or install pipe insulation.
These easy, do-it-yourself measures are the most effective ways to prevent water leaks from occurring, yet the vast majority of homeowners don’t take the necessary measures.
As you approach renewal discussions this season, you can offer a reminder checklist to drive these simple actions forward for homeowners.
With the industry average water leak costing more than $10,000 in damages, coupled with the knowledge that water is the most frequent source of property loss, helping clients prevent this frustrating, costly and common exposure is a critical piece of the value delivery puzzle. In addition to educating clients about the myriad of risk mitigation steps they can take, advising that they install a water shut-off device is the best piece of advice agents and brokers can provide. In the event of a leak, a water shut-off device will turn off the water supply in the home, and that early detection and shut-off means less damage and inconvenience to homeowners.
No. 2: Understand what clients value most
Two-thirds (67%) of homeowners told Chubb that they will “definitely” or “probably” undergo a home renovation or improvement project over the next 12 months. Of particular interest is where they are planning to focus those renovations: among all of the areas of the home, the kitchen, living room, family room and dining room ranked as the most popular areas for improvement.
What do these rooms have in common? They all provide space for friends and family to come together.
This desire for personal interaction holds true even when homeowners are asked about their wildest renovation dreams. When asked about their dream renovations, common areas like a chef’s kitchen, theater room and gaming room outperformed solo spaces, including a “she shed” or “mancave.”
The perfect time to think about installing home protection devices is when a client is renovating an existing home. Agents and brokers can provide additional value by reminding clients to use this opportunity to install protection devices and equipment such as heat detection (especially in attics and crawlspaces), home cameras, generators as well as loss mitigating water shut-off systems.
In addition, understanding what homeowners care about most is critical to understanding their risk profile, and subsequently delivering exceptional value. For instance, if clients are renovating in order to host more friends and family in their homes, there is likely a corresponding increase in liability exposure. By understanding clients’ behaviors and goals, agents and brokers (and their insurance carrier partners) can have proactive conversations about necessary changes in coverage. After all, the worst time for a client to find out they’re under-insured is after a claim occurs.
No. 3: Know who your clients count on
Depending on the situation, clients count on different people.
When asked about home design inspiration, homeowners told us that they value the opinions of friends, family members and neighbors above anyone else — even more than celebrity interior designers. According to the survey, 37% of homeowners consider their home design hero to be a relative or friend. Chip and Joanna Gaines were the closest celebrity option, with less than a quarter (22%) citing them as their primary home design inspiration.
However, when it comes to home protection, homeowners don’t always lean on these trusted connections with family and friends when they are away on vacation. Per Chubb’s recent study, less than half of homeowners provide necessary home care information to caretakers — just 38% provide alarm code information, 37% share water leak insight, 31% leave fire mitigation information and 29% offer guidance on what to do in the event of a power outage. Most concerning is that a quarter of all homeowners share no property protection information with caretakers at all.
With homes most vulnerable while homeowners are away, it is important clients know how to protect their property while on vacation. In addition to the steps listed above, clients should consider leaving insurance contact information with a caretaker in case of an unanticipated event.
Here’s to a happy and healthy 2020!
Regardless of which of these actions you choose to press with your clients in 2020, know that you will be adding value. In the meantime, take a moment to toast yourself and your success in 2019 — you did it!
Ana Robic (arobic@chubb.com) is chief operating officer at Chubb Personal Risk Services. These opinions are her own.
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