Beyond the Call

[insurance1822]

mortgage brokers will call when there's trouble. aka crap credit, super tight debt ratio's (which tends to be w/ bum people..) and weird situations. you'll need to solve those problems to then garner the relationship. without many carriers & powerful representation (monoline property carries etc...) you won't be able to pull this off.

 

[HCCIA]

That is a great idea. However I think our agency managers may have a problem with us doing that. They might feel it is an improper quote without a real person, a real age, a real credit score, etc. It could become an ethics issue that I'm offering a false low rate to garner business, like bait and switch. If they wanted to make an issue out of it, it could be grounds for reprimand or getting fired. My other concern would be .. What happens when the property has a buyer and they call you and now you put in the real buyers name, age, insurance score, etc., and the rate jumps higher than your "blind" quote to the broker? Don't you now have a home owner and broker disappointed at the higher rate? You might overcome this ethics concern by putting a disclaimer in the quote that reads: "Home insurance for this property AS LOW AS $______ Per year. Rates subject to individual qualifying factors and will vary. Contact me for your exact quote". Help me out here. I like the idea, and would like to use it, but I want to do so without operating unethically.

As an IA, I have several carriers. Some require credit, some don't. My rated does not require credit to determine a quote. Either they qualify or they don't. I can generally get them into one carrier or the other regardless of credit problems. Yes, my disclaimer states that they would have to qualify and the application be reviewed by an underwriter. I've never had any issue when someone called and wanted our quote and didn't qualify. They generally already know they have bad credit and probably already got a higher quote from their incumbent agent. The brokers and mortgage brokers are aware of the issue of credit.
One of my carriers is pretty cheap and doesn't look at credit.

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mortgage brokers will call when there's trouble. aka crap credit, super tight debt ratio's (which tends to be w/ bum people..) and weird situations. you'll need to solve those problems to then garner the relationship. without many carriers & powerful representation (monoline property carries etc...) you won't be able to pull this off.

Absolutely right. These mortgage brokers have a tight window to squeeze a client into. They know I always do my best to help them close their account. And- do it quickly. These tend to not always be the best clients, but for the most part they are. Cross selling other lines seals the deal.

 

[Derrick]

mortgage brokers will call when there's trouble. aka crap credit, super tight debt ratio's (which tends to be w/ bum people..) and weird situations. you'll need to solve those problems to then garner the relationship. without many carriers & powerful representation (monoline property carries etc...) you won't be able to pull this off.

And how many companies would you suggest? Or what ones? I'm with an IA that has, for Homeowners, have Auto-Owners, Citizens, Safeco, and ASI. Is that not enough? Those companies also tend to be preferred, I'd say. We do deal with brokers but those are more for DP1's and 2's for houses that are bought for a few thousand dollars and are usually placed with American Modern or Great Lakes Mutual.

 

[HCCIA]

And how many companies would you suggest? Or what ones? I'm with an IA that has, for Homeowners, have Auto-Owners, Citizens, Safeco, and ASI. Is that not enough? Those companies also tend to be preferred, I'd say. We do deal with brokers but those are more for DP1's and 2's for houses that are bought for a few thousand dollars and are usually placed with American Modern or Great Lakes Mutual.

Does anyone really write DP-1's or HO-1's anymore. I don't have any on my books!

 

[Derrick]

Does anyone really write DP-1's or HO-1's anymore. I don't have any on my books!

Lmao yes! Just wrote one two days ago.

That's what happens when you buy a $7,000 house, built in 1920, in the worst possible neighborhood you could imagine. ~$470 premium.

I wouldn't have even wrote it had I not had his auto. Remember folks, a messy divorce and being on disability is what might land you in an HO1!

 

[GXR2]

Does anyone really write DP-1's or HO-1's anymore. I don't have any on my books!

If anyone does, that client will be poorly protected and become your worst nightmare on claim day.

 

[Derrick]

If anyone does, that client will be poorly protected and become your worst nightmare on claim day.

Hey man I went through all the channels I could to get them a normal HO-3, and at the very least an HO-2. It's not like I sold him an HO-1 to be competitive to HO-3 quotes. NO agent could even quote HO-3 quotes, and he shopped everywhere and he needs something before closing.

Guy broke his back 2 years ago, went from $100K+/yr to living on disability. Then caught his wife cheating. I'm just trying to make SOMETHING work for the guy.

 

[GXR2]

Hey man I went through all the channels I could to get them a normal HO-3, and at the very least an HO-2. It's not like I sold him an HO-1 to be competitive to HO-3 quotes. NO agent could even quote HO-3 quotes, and he shopped everywhere and he needs something before closing.

Guy broke his back 2 years ago, went from $100K+/yr to living on disability. Then caught his wife cheating. I'm just trying to make SOMETHING work for the guy.

Experience has taught me that high risk client = volatile client: agent abuse, high maintenance, cliams and E&O threats. Helping them out also means referring them to a high risk agency.

 

[Derrick]

Experience has taught me - High risk client = agent abuse, headaches, nightmares, E&O. Being a "nice guy" means referring it out to a high risk agency.

I'm still building my book so maybe I got to get burned on something like this before I realize because in my eyes right now I'm going above, and "beyond the call." Lmao

I like your posts though, brings good discussions to the table!

 

[GXR2]

I'm still building my book so maybe I got to get burned on something like this before I realize because in my eyes right now I'm going above, and "beyond the call." Lmao

I like your posts though, brings good discussions to the table!

Understand. You need to put food on the table. Have been there before. Your book of business is much like a house. What is stronger, a house built on a foundation of mud, or bricks? Preferred risks are the bricks.

Companies that can handle the volatility of high risk clients like Progressive for example, have the resources and deep pockets to keep the revolving door moving. You as an IA are not rich. It takes 4 times the effort to get new business as it is to keep preferred business. Focus on the bricks and retention.