Paying Less for Flood Insurance
Whether your clients are moving into their first home or moving to accommodate a growing family – all homeowners want to be financially responsible with their homes. A new home is a massive undertaking, that’s why as an insurance agent you are vital in educating your clients on the ways of protecting their homes from the dangers of flooding.
- Choose a Higher Deductible
- Your clients’ deductible can vary but can help to lower their monthly out-of-pocket costs for their policy. Insurance is about understanding risks; the risk of having a higher deductible is less of a risk than not having any financial support in the event of a flood. By increasing their deductible to $10,000 your clients could lower their premiums by up to 40%. When even just one inch of water can cause roughly $25,000 in damage, you are already saving your clients thousands in damages.
- Mitigating Risk
- Since risk is a factor in how much the cost of insurance rates will be, if your clients take action to mitigate risks – it can positively impact their rates. Talk to them about elevating electrical panels, water heaters and other utilities. Moving items like utilities to places least likely to be destroyed in the event of a flood can help to lower their risk – and thus their rates.
- Provide an Elevation Certificate
- For your clients living in high risk areas, talk to them about obtaining their Elevation Certificate. While it’s not a guarantee, the certificates can be used to determine flood risk, and can help to lower the cost of their policies.
Whether your clients know it or not, most homeowners insurance doesn’t cover flood damage. This means that in the event of a flood, they are left financially vulnerable. When your clients question the costs of flood insurance, remind them that they have options for paying less.
