time of year again—hurricane season. And that means it’s important for your
clients to be covered for possible damage.
the 10th anniversary of the most destructive season in history, presents
the perfect opportunity to talk to your clients about the importance of having
storm season had 28 named storms (four of which were Category 5 storms) and caused
$159 billion in reported damages. Since recent hurricane seasons have been less
active, your clients may have developed a false sense of security.
you’re talking to them about their homeowners, wind, and hurricane coverage,
don’t forget to have the flood talk. It might be the most important conversation you have
with your clients this year.
insurance will help your clients get back on their feet—but only if they have the
right coverage to make the necessary repairs and replace their belongings. After
any disaster, there are some who find they didn’t have enough coverage because
they purchased only what the lender required, not what they truly needed.
clients better understand their flood risk and find the right amount of coverage.
Remind them if their home is their principal residence, they must insure the
building to at least 80 percent of the home’s replacement cost to have their future
flood claim adjusted at Replacement Cost Value.
clients to purchase contents coverage to make replacing or repairing furniture,
appliances and other household items easier. Remember to explain that all
contents claims are adjusted at Actual Cash Value, which means they might not
get back as much as it cost to buy the item when it was brand new.
flood talk with all of your clients—including your longstanding clients.
Someone who declined flood coverage in the past might be ready to rethink that
decision. Someone who purchased only building coverage might be ready to add
contents coverage. And someone who was fully covered last year might have made
changes to the insured property that requires an increase in coverage. You might
have increased it for their homeowners policy, but make sure you also update
their flood insurance.
If a client
still declines flood coverage for the building or contents, or if a client asks
to insure the home for less than replacement cost, get a signed declination form
indicating you offered the coverage but the client declined it. This will help
reduce your errors and omissions exposure. (Download
a Flood Insurance Acknowledgement Form) download a declination form at Agents.FloodSmart.gov.
Don’t put off
having this important conversation with your clients. If you wait until a
hurricane is approaching, it will be too late. There typically is a 30-day
waiting period before a flood policy goes into effect.
Check out the
other tips and resources on Agents.FloodSmart.gov to help you market and sell flood
insurance, including the hurricane-related widget, infographic and video
testimonials. Watch the
“Should You Have the Flood Talk?” video. And if you do not already participate
in the free Agent
Referral Program, sign up to begin receiving leads.
Having the flood talk is not always easy, but it is
always important. Don’t let your clients find themselves without the means to
put the pieces back together when a hurricane heads their way this year.