Your client’s home could be the largest investment they will ever make. Purchasing insurance is an easy way they can protect their investment and have peace of mind. But purchasing an insurance policy is a big decision for everyone involved. That’s why homeowners seeking an insurance policy look to licensed insurance agents for advice on coverage selections based on their specific needs.
As an insurance agent, you should expect to be faced with a series of tough questions before a potential client purchases homeowners insurance for their home. While tough prospect questions can seem intimidating, it’s important to be prepared to provide the smoothest transaction for everyone involved. Here are four tough prospect questions and how to respond.
Question 1: How long has your company been in business?
It’s no surprise that people want to do business with people they like, which is why one of the first questions prospective clients will likely ask you will be regarding your company. Be prepared to discuss different facets of the business with them. This includes things like how long the company has been in business, what the exact kind of services offered are, what the success rates are, who your clients are, as well as your personal experience.
Question 2: Do I Really Need This?
A potential client seeking homeowners insurance will want to know how much insurance they truly need. Be prepared to listen to your clients’ needs to help them determine the best coverage for them. How much coverage your client needs will depend on a variety of factors, so listening to and understanding your client to determine their specific needs is crucial. If you encounter skepticism regarding certain policies, take the opportunity to promote bundling, as it allows potential customers to get maximum coverage at a discounted rate.
Question 3: What are the basics of the policy?
Once you and your client have narrowed down the policies that best fit their needs, be prepared to answer any of your client’s questions about the specifics of each policy. Some of the questions you should be prepared to answer include:
– How long does this policy last?
– What are the premiums?
– What’s not covered?
Question 4: How much will it cost?
This is where things get tough. You need to be honest with your clients, but you also don’t want prospects to be surprised by a high premium price—especially when they don’t fully understand what’s included in that cost.
Remain as transparent as possible when it comes to rate structure. You should know enough to make it clear to prospects what factors go into determining premiums and deductibles, and whether these rates can fluctuate. Building trust with your prospective clients will go a long way, so be sure to give them a very detailed quote. If the rates vary, don’t give them a quote until you know enough about the client and their specific needs.
When it comes to selling insurance, you can never be too prepared. Anticipating your client’s needs will make for happy clients, happy agents, and an overall happy experience.
Learn More About ASI
ASI is one of the largest homeowners insurance carriers in the United States. Through a network of independent agents, the company offers home, condo, renters, dwelling, fire, and flood insurance in over half the country, with plans to cover the rest by 2017. Find out more at americanstrategic.com.