Here's an article i wrote some time ago. I've attached the sample doorknob hanger.
Doorknob Marketing
Author: Bill Wilson
According to a recent study, about 67% of apartment dwellers and house renters do not have an HO-4 (renters insurance) policy. What does this mean to you? Given the number of renters in the U.S., this is a vast untapped market. Admittedly, the commissions aren't great, but what better place to start a newly licensed producer or a CSR. In addition, if you explain it convincingly, it could be an opportunity to sell additional coverages even homeowners are reticent to buy, along with commercial lines now or in the future.
Our "Ask an Expert" service got an inquiry some time ago that asked, "I was wondering if there were any specific marketing techniques that other insurance agents have used that could help a young agent (less than one year in the business) get more of a grip or hold in the market. Is there a tried and true method utilized to get a young agent's name more readily recognized in a saturated market?" The following article includes responses from our faculty to this inquiry:
One of the responses involved what I'll refer to as "Doorknob Marketing" which involves identifying a market that is not saturated and initiating a one-on-one marketing campaign. One such market is apartment dwellers. According to a Trusted Choice® study, almost 70% of renters have no homeowners insurance. (It's not beyond the realm of possibility that many of the 30% that said they do have coverage only think they do or, out of embarrassment, were unwilling to admit they lacked coverage.)
When asked why they have no insurance, the most common responses are typically that renters think the landlord would be responsible for damage to their property, they think the coverage is too expensive, or they don't understand the need for it. More likely than not, most renters don't even realize that "renters insurance" (or as we know it, an HO-4) includes liability coverage, nor are they aware of why this policy feature is so important...perhaps even more so than the direct property coverage.
According to the National Multi Housing Council (www.nmhc.org), almost a third of all households occupy rentals. Given that about two-thirds of all renters are uninsured, this means that perhaps one-fifth of all U.S. households have no personal property and liability insurance (for more demographics, click here). That is a HUGE untapped market. For example, according to NMHC, there are over 358,000 rental units in Dallas, Texas. If two-thirds of them are uninsured, that's a potential of about 240,000 renter policies without considering vacancy rates.
One way to tap into this market efficiently is by using a doorknob hanger with a short message and offer to quote. Click here for a sample that I threw together:
No doubt you, your carriers, or a professional marketer can come up with something much better. If so and you're willing to share, please email examples to [email protected] and we'll post them here.
Another efficient means to market is to contact the apartment manager and offer to put on a free 30-45 minute presentation on renters and auto insurance. Be sure to stress the importance of liability coverage with vivid examples such as the renter whose unattended charcoal grill burned down a $600,000 apartment building and destroyed the contents of 15 other tenants. This format will also allow you to provide more substantive handout materials.
In doing so, stress the value of an umbrella policy to a renter, which may be greater than its value to the owner of a single-family dwelling. Point out HO policy options of interest to renters...e.g., a personal injury coverage endorsement (typically very inexpensive) would extend coverage for claims like invasion of privacy, slander, and wrongful entry. For some technical considerations, check out this article:
The good thing about this market from the producer''s standpoint is that there is ZERO competition for a renter's account (unless the consumer seeks a quote from his or her auto insurer...so be sure when you quote the HO-4 that you offer to quote the auto for a package discount). Admittedly, the commissions on this type of business are not great. However, most renters have autos and present the opportunity to quote on their entire package. In addition, many renters become homeowners and business owners. Too, getting a foothold with a significant number of renters in an apartment complex might lead to inroads for an agency commercial lines producer to quote the commercial account.
More information:
Doorknob Marketing
Author: Bill Wilson
According to a recent study, about 67% of apartment dwellers and house renters do not have an HO-4 (renters insurance) policy. What does this mean to you? Given the number of renters in the U.S., this is a vast untapped market. Admittedly, the commissions aren't great, but what better place to start a newly licensed producer or a CSR. In addition, if you explain it convincingly, it could be an opportunity to sell additional coverages even homeowners are reticent to buy, along with commercial lines now or in the future.
Our "Ask an Expert" service got an inquiry some time ago that asked, "I was wondering if there were any specific marketing techniques that other insurance agents have used that could help a young agent (less than one year in the business) get more of a grip or hold in the market. Is there a tried and true method utilized to get a young agent's name more readily recognized in a saturated market?" The following article includes responses from our faculty to this inquiry:
One of the responses involved what I'll refer to as "Doorknob Marketing" which involves identifying a market that is not saturated and initiating a one-on-one marketing campaign. One such market is apartment dwellers. According to a Trusted Choice® study, almost 70% of renters have no homeowners insurance. (It's not beyond the realm of possibility that many of the 30% that said they do have coverage only think they do or, out of embarrassment, were unwilling to admit they lacked coverage.)
When asked why they have no insurance, the most common responses are typically that renters think the landlord would be responsible for damage to their property, they think the coverage is too expensive, or they don't understand the need for it. More likely than not, most renters don't even realize that "renters insurance" (or as we know it, an HO-4) includes liability coverage, nor are they aware of why this policy feature is so important...perhaps even more so than the direct property coverage.
According to the National Multi Housing Council (www.nmhc.org), almost a third of all households occupy rentals. Given that about two-thirds of all renters are uninsured, this means that perhaps one-fifth of all U.S. households have no personal property and liability insurance (for more demographics, click here). That is a HUGE untapped market. For example, according to NMHC, there are over 358,000 rental units in Dallas, Texas. If two-thirds of them are uninsured, that's a potential of about 240,000 renter policies without considering vacancy rates.
One way to tap into this market efficiently is by using a doorknob hanger with a short message and offer to quote. Click here for a sample that I threw together:
No doubt you, your carriers, or a professional marketer can come up with something much better. If so and you're willing to share, please email examples to [email protected] and we'll post them here.
Another efficient means to market is to contact the apartment manager and offer to put on a free 30-45 minute presentation on renters and auto insurance. Be sure to stress the importance of liability coverage with vivid examples such as the renter whose unattended charcoal grill burned down a $600,000 apartment building and destroyed the contents of 15 other tenants. This format will also allow you to provide more substantive handout materials.
In doing so, stress the value of an umbrella policy to a renter, which may be greater than its value to the owner of a single-family dwelling. Point out HO policy options of interest to renters...e.g., a personal injury coverage endorsement (typically very inexpensive) would extend coverage for claims like invasion of privacy, slander, and wrongful entry. For some technical considerations, check out this article:
The good thing about this market from the producer''s standpoint is that there is ZERO competition for a renter's account (unless the consumer seeks a quote from his or her auto insurer...so be sure when you quote the HO-4 that you offer to quote the auto for a package discount). Admittedly, the commissions on this type of business are not great. However, most renters have autos and present the opportunity to quote on their entire package. In addition, many renters become homeowners and business owners. Too, getting a foothold with a significant number of renters in an apartment complex might lead to inroads for an agency commercial lines producer to quote the commercial account.
More information:
