How Thorough is Too Thorough?

[ussmex]

Greetings All,

Some partners and I just started an independent agency with a good homeowners lead source and a few direct appointments. I think we're going to do OK with marketing. My challenge is building a solid operation.

As I'm working through client homeowners applications I'm wondering how thorough is too thorough. I would love provide every last piece of information possible regarding the client and their property, right down to filling out a 100% accurate replacement cost estimator, but based on the existing policies I'm reviewing I don't think that's what my competition is doing.

In the opinion of the veterans, what is the correct balance to strike? What are the essential practices for using time wisely and driving production in the short run, while protecting your client, your agency, and your carriers in the long run?

Thank you for your help!

 

[BTFuzz]

Don't worry about your competition. Be different....make up a form with all available endorsements, review with every client and have them sign and date it so you have documentation that you discussed all options. In the end, it's about doing the right thing.

 

[Guest]

You may want to consider a mission statement for the agency which may help you to stay on track and in the direction where you want to take the agency.

Our agency tiped the balance scale to being thorough. While it took longer to increase volume we developed a reputation with carriers and agents. That reputation helped us to get appointed with some carriers that gave very few appointments and some carriers did not terminate us for low volume. Also our reputation helped us to acquire some agencies along the way. Good luck!

 

[Bertolinoins]

We insure to the Marshall & Swift Cost Index. We share that info with the prospect or insured so they understand we are not just pulling a number out of thin air. Any agents competing for the account and trying to quote a lower limit end up looking unprofessional.

 

[Hefe]

I've seen numerous competitors undercutting the coverage A limit to compete on price. Most clients are more interested in having the correct protection once you point out the reason for the lower price.

Do what's best for the client, not necessarily what the competitor is doing. The replacement cost estimator we use only takes a few minutes. I typically have one ready ahead of time using information found in the public property records and then go over it with the client. Since I cannot possibly know floor covering, wall covering, etc until I talk to them, I use the default for those values for the initial estimate.

You may lose a client or two who only are looking at the bottom line price but those don't see the value of an agent and would have left at the next slight rate increase. I can think of a couple clients that, despite my warning, left for another carrier with the dwelling around half of what it should have been.

 

[Hefe]

I've seen numerous competitors undercutting the coverage A limit to compete on price. Most clients are more interested in having the correct protection once you point out the reason for the lower price.

Do what's best for the client, not necessarily what the competitor is doing. The replacement cost estimator we use only takes a few minutes. I typically have one ready ahead of time using information found in the public property records and then go over it with the client. Since I cannot possibly know floor covering, wall covering, etc until I talk to them, I use the default for those values for the initial estimate.

You may lose a client or two who only are looking at the bottom line price but those don't see the value of an agent and would have left at the next slight rate increase. I can think of a couple clients that, despite my warning, left for another carrier with the dwelling around half of what it should have been.

 

[ussmex]

These are great replies and very appreciated. In the long run I'm sure it will help us with both carriers and clients to take our applications the right way.

One of the reasons it can take a while for us to do a MSB is that we very often have a copy of a recent mortgage appraisal to work with and I can actually see if the exterior doors are "french", or have a good idea of how many linear feet of granite are in the kitchen. It gets to be quite a bit of detail.

Thanks for all of the feedback!

 

[Braxtonut]

I think the affiliate companies you work with should be really highlighted. People like to see large brand names, because they feel safe about their investment or purchase.