Five things every realtor and mortgage lender must know about insurance
This coming Sunday, the two best teams in the NFL, the Eagles and the Chiefs, face off in Super Bowl LVII. Football is the ultimate team sport. On a great team, every player has a role and must strive for perfection in executing the duties associated with that role.
A successful real estate transaction is quite similar: it is a team effort where everyone has a role and must strive for perfection in executing their respective duties. This includes the realtor, the mortgage lender, the insurance agent, the inspector, the appraiser, and the title professional.
With this in mind, there are five things every realtor and mortgage lender must know about insurance. This is not about making you an expert on insurance, but rather about enhancing the process of selling and buying a home.
1) It is imperative that the insurance agent talk directly to the client. There are certain conversations that the agent needs to have with the client. Just like the realtor and mortgage lender, the insurance agent is uniquely equipped to have these specific conversations. And there are dozens of factors that determine the price of a policy. Furthermore, different things are going to be important to different clients. Just like you, we must skillfully position our approach.
2) A professional agent will also insist on having a detailed discussion of car insurance with the client. First of all, bundling car and home insurance will almost always save the client money. Second, and far more importantly, if the client is ever in a serious car accident – this can happen to even the best drivers - and does not have sufficient car insurance coverage, they can be sued personally. That means they can lose that dream home you have helped them buy. This can also happen in the event the client is not at fault. If the client is hit by an uninsured driver and does not have proper coverage, the financial fallout can be life-changing.
3) This third point applies more to mortgage lenders. Please be very careful giving estimates on insurance. If at all possible don't do this. But if you have to give an estimate, emphasize to your client that it is just an estimate and not a hard-and-fast number. If you give an estimate of, say, $3000 per year for home insurance and the agent can't find a policy for less than, say, $4000 per year, you risk derailing the entire transaction. Again, be very careful.
4) Absolutely never wait until the last minute. Dozens of factors influence most insurance proposals. And until the agent knows all the relevant details, it is unreasonable to expect a proper, professional proposal that specifically addresses the client's situation. Addressing these matters may take a little time.
5) To drill down on the last point, insurance is much tougher to underwrite in recent times. Major carriers have pulled out of several states. And numerous carriers have really tightened up on their marketing guidelines. This can add several days to the insurance process. You need to take this into account and inform your clients accordingly.
For a more detailed treatment of this subject, please click here.
My team and I look forward to serving you.
Doug Newman
303-902-5503
30+ carriers ... 30+ states
Auto-home-commercial-benefits
epsinsures@gmail.com - www.epsinsures.info
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