How Insurance Agents Can Help First-Time Homeowners

First-time homebuyers have a lot on their plate. Between finding the perfect starter home in a desirable area, staying under their budget, and actually moving, many homeowners brush insurance aside.

But purchasing their first home is one of the biggest investments your clients will ever make — that’s why it’s important you’re there to guide them through buying a homeowners insurance policy. Read on to learn four ways you can help first-time homeowners.

Help Them Determine How Much Coverage They Need

When it comes to buying homeowners insurance for the first time, many homeowners feel overwhelmed. And it’s easy to feel that way — after all, homeowners insurance is what protects your clients’ most important investment.

When purchasing homeowners insurance, many homeowners aren’t sure how much coverage they actually need. This is where you come in and how you can start easing the stress new homeowners may feel. The best way you can do this is to thoroughly guide them through the process by discussing their assets and what it will take to properly cover them.

It’s important to emphasize that the better their coverage, the less they will have to pay out of their own pocket if disaster strikes. Lenders influence coverage too. In certain cases, your clients’ lenders may decide how much coverage they need and require them to buy a policy that covers at least the amount of the mortgage.

Talk Deductibles

You understand what a deductible is, but that doesn’t mean your clients do too — especially if this is their first time buying homeowners insurance. Taking the time to explain what exactly their deductible is will help them ensure they are comfortable paying that out of pocket if they make a claim. Be sure to remind them that a policy with a $100 deductible will cost more than one with a $250 deductible and that higher deductibles may be available at a reduced price.

Ensure They Thoroughly Understand Their Policy

Ultimately, a home insurance policy is a legal contract so it’s important your clients fully understand their policy. All too often homeowners blindly purchase a policy from a cut-rate insurance agency only to not fully understand their policy and how it affects them. The best agents are there to ensure this doesn’t happen. You can do this in many ways. From avoiding technical jargon to making sure you’re always available to answer questions — these small efforts will be especially helpful to first-time homebuyers. Better yet, this is a great way to establish long-lasting relationships and boost client retention.

Advise Them on Specialty Insurance Needs

While the average first-time homebuyer may understand basic insurance policies, they don’t always realize that sometimes coverage needs to go beyond what the standard market provides. That’s why it’s important to discuss any specialty insurance needs they may have. Specialty insurance needs are things that aren’t commonly covered by standard insurance policies. This could mean anything from educational liability to specialty homeowners insurance for historic homes with old roofs. By going the extra mile to discuss this with your client, you’ll help making their first time buying a home easier, and you’ll likely retain them as a client for years to come.

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 more than 40 states. Find out more at AmericanStrategic.com.