Any Reason to Not Write Dp3 Vs Ho3

[AZDave]

you would make more money if you didnt try to re-invent the wheel

No doubt! I could have sold three HO 5's in the time spent just thinking about this.

Why not sell just the DP 1 with the 7 perils and be done - that should be 70% less. Have the customer sign off, and your good to go.

 

[Milkman1265]

you guys keep saying educate the customer but fail at wanting to learn the real difference between the two.

if it was only fifty bucks a year more, this would be a non issue.

if you educated a customer of the difference from 1800 and 800 and the only thing is personal property.

isnt it up to the customer to decide which one he needs. after you recommended the ho3.

not everyone needs personal property.

my market is customers who have 50 year old sofas or old tvs that are worth close to nothing. they do not spend all their money in personal luxury items and focus on working and paying the mortgage and saving money for their kids.

if they knew the 200k personal property cost 1k more, they most certainly go with the dp3.

and when they do need personal property, dp3 can add 30k or 50k not automatically putting half of dwelling.

so if dp3 covers the same perils and they understood the difference, wht is this bad.

not everyone needs ho3 or ho5, and i am not selling dp policies to everyone and their mothers.

my question is simply if the coverage is th same except personal property and insured does not want that much persobal property, why not?

you people talk like i lie to every single client and sell them crap as fast as i can.

and selling everyone the best coverage because it covers you from claims isnt always fitting the needs of the customer either.

 

[Sales71]

you guys keep saying educate the customer but fail at wanting to learn the real difference between the two.

if it was only fifty bucks a year more, this would be a non issue.

if you educated a customer of the difference from 1800 and 800 and the only thing is personal property.

isnt it up to the customer to decide which one he needs. after you recommended the ho3.

not everyone needs personal property.

my market is customers who have 50 year old sofas or old tvs that are worth close to nothing. they do not spend all their money in personal luxury items and focus on working and paying the mortgage and saving money for their kids.

if they knew the 200k personal property cost 1k more, they most certainly go with the dp3.

and when they do need personal property, dp3 can add 30k or 50k not automatically putting half of dwelling.

so if dp3 covers the same perils and they understood the difference, wht is this bad.

not everyone needs ho3 or ho5, and i am not selling dp policies to everyone and their mothers.

my question is simply if the coverage is th same except personal property and insured does not want that much persobal property, why not?

you people talk like i lie to every single client and sell them crap as fast as i can.

and selling everyone the best coverage because it covers you from claims isnt always fitting the needs of the customer either.

This is a very good Topic good Job Milkman. DP3 could have a place in the agency. Some companies offer a DP3 when the client has claims. Personal Property can be added and add theft as an endorcment and it mirrors the HO3. The problem with DP3 is the companies that offer them for owner occupied are not big companies and they might not offer all the coverage that is need by the clients. For example Solar Panels are excluded by smaller company for wind and hail damage so you have to examine every client needs carefully before you offer the DP3.

 

[AZDave]

Hello Milkman. No accusations here, please take a chill pill, or a snickers bar. You clearly are going the extra mile to offer savings and customize policies specific for your clients needs. I hope they reward you with never ending renewals and no hassles with any claims in the future.

I am more of a coverage guy and do not focus on price as much. I don't want to see any claims denied, unless it makes sense.

But then again, insurance is just a commodity.....this week milk is on sale at Fry's, that's where I'm going to buy it.

Good Selling.
Dave

 

[bobson]

you guys keep saying educate the customer but fail at wanting to learn the real difference between the two.

if it was only fifty bucks a year more, this would be a non issue.

if you educated a customer of the difference from 1800 and 800 and the only thing is personal property.

isnt it up to the customer to decide which one he needs. after you recommended the ho3.

not everyone needs personal property.

my market is customers who have 50 year old sofas or old tvs that are worth close to nothing. they do not spend all their money in personal luxury items and focus on working and paying the mortgage and saving money for their kids.

if they knew the 200k personal property cost 1k more, they most certainly go with the dp3.

and when they do need personal property, dp3 can add 30k or 50k not automatically putting half of dwelling.

so if dp3 covers the same perils and they understood the difference, wht is this bad.

not everyone needs ho3 or ho5, and i am not selling dp policies to everyone and their mothers.

my question is simply if the coverage is th same except personal property and insured does not want that much persobal property, why not?

you people talk like i lie to every single client and sell them crap as fast as i can.

and selling everyone the best coverage because it covers you from claims isnt always fitting the needs of the customer either.

50 year old sofas can burn up just as easily as a new sofa.

 

[Milkman1265]

yeah, no anger issues here lol.... just good old debating the pros and cons.

just trying to understand the policies a bit more, i have both types in my agency.

My market seem to stray toward dp3 a lot more.

The typical policy for me is frame/brick row townhouse, 4 family, with RC over 800k, and 2500 deductible.

Some of my HO carriers only offer up to 1-2 family, so a lot of them do not qualify for HO anyways, just trying to see if its good enough for 4 family homes why not 1 or 2 family.

 

[joshb]

There are subtle differences between the Dp3 and Ho3 that you may be missing. typically a dp3 excludes ordinance or law coverage with (maybe) an option to purchase max of 25% while the ho3 includes it at 25% with 50% option (carrier specific). Also, the liability on the Dp3 is usually only premises liability. I've seen a claim where a child was staying over night on a Boy Scouts trip, threw a rock and hit another kid in the face liability paid out on ho3 policy. Dp3 would have excluded coverage. They are actually still clients of mine. I don't know the other differences off of the top of my head but it's all in policy language. I recommend reading the policies to determine the differences.

 

[Southernfamily]

Well an HO3 has Loss Of Use, where as the DP has Fair Rental Value.

 

[WolfpackAgent]

DP has ALE (Additional Living Expense) also, at leas the ones we offer. Also, a DP won't have the extended replacement percentage.

 

[adjusterjack]

the liability on the Dp3 is usually only premises liability.

Anybody who can say that has no business being an insurance agent.

A DP3 HAS NO LIABILITY SECTION. Period.

And that's not a "subtle" difference.

I recommend reading the policies to determine the differences.

Me, too.

In case anybody actually wants to read the policies and KNOW the differences (instead of just thinking they know the differences) here they are.