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The high-value home market is a great niche market for insurance agents. Typical high-value homes are valued anywhere from above $500,000 to $1 million or more, depending on the area. The high-value home market is made up of approximately 11.1 percent of all households, and according to the Census Bureau’s most recent housing estimate of 135.8 million households, that makes for approximately 14.9 million high-value households in the United States.
A recent report from Insurance Journal concluded that approximately 40% of high-value homeowners carry only enough insurance to cover the sale price of their home, leaving them underinsured in the event of a total loss. Insurance agents have a unique opportunity to distinguish themselves in the high-value home communities, offering coverage that goes above and beyond minimum requirements.
As a leading national wholesaler, Mavon Insurance works with top-tier carriers to provide insurance agents with access to insurance products that are designed exclusively for the high-value homeowners market. Here are three tips to help agents leverage these resources and become a valuable asset to their local high-value home markets:
Tip #1: Educate Clients on Policy Limits
When working with high-value homeowners, agents should review their homeowners’ policies and explain in clear terms what their basic policy is offering them. Most general homeowners’ policies are not designed for high-value homes and only cover the mortgage value of the home, not including any custom work or specialty construction that the owner has done. Many high-value homeowners are not even aware that they are among the 40% of the inadequately insured.
Tip #2: Explain the Value of Specialty Policies
Educate clients and potential clients on the need for a policy that is specifically designed for high-value homes. Coverage features should include:
- High liability limits for asset protection.
- Extended replacement cost to restore or repair a home to its original beauty.
- Additional living expenses for temporary relocation during repairs or rebuilding.
- Cash settlement options in the event the client decides not to rebuild.
- Coverage for sewage and drain backups.
- Equipment breakdown protection.
- Risk management services to mitigate losses.
- Jewelry protection with increased limits.
Tip #3: Be Attentive
High-value homeowners value expertise and personal attention from their insurance agents. Agents should present themselves as more than just a salesperson, and offer their clients and potential clients a level of service that makes them feel like more than just another sale. Agents looking to improve their standing in the high-value home market should partner with insurance wholesalers that can provide the support they need to help them address all of their clients’ needs.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.