by Palomar
Living far from a body of water or outside a special flood hazard area doesn’t mean that there is no risk of a flood event or damage. Flooding has occurred in all 50 states and in 99% of U.S. counties. Melting snow, broken water mains, and clogged city sewer systems can all result in neighborhood flooding.
Why Sell Flood Insurance
Grow Your Portfolio
Flood insurance should be an important part of your portfolio. Growing your book of business can be as easy as touching base with existing clients who carry other lines of coverage and starting a conversation about their protection gaps.
Protect Your Clients
A standard homeowners insurance policy does not include flood coverage for severe types of water damage. Homeowners often wrongly assume that a flood claim would be covered under their homeowners insurance policy. Your clients rely on you to inform and educate them about the protection they need.
Protect Yourself
Two of the most frequent Errors and Omissions (E&O) claims filed against agencies involve failure to offer proper coverage and providing inadequate amounts of coverage. Even if your client is not required to buy flood coverage, it’s helpful to proactively provide a quote for their consideration.
How to Propose Flood Insurance to Potential Clients
Get to Know Your Clients
Identifying new clients can be challenging but remember that flooding can happen anywhere. There are potential clients in your area and community who need flood insurance today. Along with identifying new clients, look for opportunities to cross-sell. Which of your current clients carry other insurance coverages but do not yet have flood insurance?
Ask Questions
To help keep flood insurance top of mind, ask your clients the following questions:
- Have they thought about or researched their home’s flood risk?
- Could they afford to repair or replace their home and belongings without insurance?
- Could they cover the full costs of living elsewhere during the time repairs are being made?
- Asking these types of questions helps highlight your client’s potential risks and coverage gaps.
Educate
One driver of flood insurance uptake is strong educational programs and communication. You can help encourage financial resilience for your clients and communities by emphasizing the fact that floods often occur outside of designated high-risk zones. Using information and tools like recent flood events and historical flood maps can help you move the conversation forward.
Discuss Options
Each individual has specific needs. Carrier partnerships through the Express Markets program, such as Palomar, allow you to help customers choose the coverage that best fits their budget.