When you’re starting your own home insurance business, it can be tempting to skimp on some of the important details in order to save time and money. However, it’s these little details that separate successful businesses from the ones that fail after only a few months or years in operation. That’s why today I want to share with you 8 of the dumb mistakes I see people make over and over again when they start their own home insurance business, as well as how you can avoid them! Let’s get started!…
Understand how homeowners insurance works
Homeowners insurance is a type of property insurance that covers losses and damage to an individual’s home. It also covers the contents of the home, such as furniture and appliances. Homeowners insurance is important because it can help protect your home and belongings in the event of a fire, theft, or another disaster.
Not knowing what type of policy you need
The first step to finding the right home insurance policy is understanding what type of coverage you need. There are four main types of home insurance policies: HO-1, HO-2, HO-3, and HO-5. Each one covers different types and levels of damage. For example, an HO-1 policy covers only the most basic types of damage, like fire or wind damage, while an HO-5 policy covers all types of damage except for those that are specifically excluded from the policy.
Thinking you can price shop
You might be able to get away with this when you’re buying a new car or a piece of furniture, but not when it comes to home insurance. Your home is one of the biggest investments you’ll ever make, and your home insurance policy is there to protect that investment. Shopping around for the best price is important, but don’t sacrifice coverage for a lower premium.
Not having a thorough application process
One of the most important things for a home insurance business is to have a thorough application process. This means that you should be asking for all the necessary information from your applicants, and you should be doing your due diligence to verify that information.
Hiring employees without background checks
You might think you’re saving time and money by not running background checks on your employees, but this is a huge mistake. Not only could you be opening yourself up to liability, but you could also be hiring someone who isn’t qualified for the job.
Investing in technology without testing it first
It’s easy to get caught up in the newest, shiniest tech tool and assume it will help your business. But before you make any decisions, it’s important to test how the technology will actually work for you. This means trying it out in a real-world setting, not just relying on the company’s marketing materials. If you don’t take the time to test, you could end up wasting money on a tool that doesn’t actually help your business.
Using poor systems
In order to be a successful home insurance business, you need to have systems in place that are organized and efficient. Having poor systems will lead to problems down the road, so it’s important to invest in good ones from the start. Here are eight dumb mistakes that can tank your home insurance business.
Failing to follow up with clients
If you’re in the home insurance business, you know that follow-up is key. Whether it’s following up with a client after a meeting to ensure they understand your proposal or calling to check in after a claim has been filed, failure to follow up will tank your business. Here are eight times when you should always follow up with your clients