What could you do this festive season that would add value to your clients and leave them with an indelible sense that you have their best interests at heart, in a way no Christmas card could? Graham Wood shares a few ideas…
The year is almost over, and yet there remains one more opportunity for brokers to provide a significant value add to their clients, exceeding expectations and going beyond the impersonal stamped Christmas card: a few “Get Out Of Jail Free” cards to cover those common festive season issues…
Sums insured
Most of us know that at the close of the year, our clients tend to increase their stockholding and the value of their house contents, and, of course, fail to notify us as their broker.
One or two household contents policies I have read make provision for an increase of 10% to 20% of the sum insured for the period mid-December to early January. This demonstrates an excellent understanding of reality, and the client’s needs. There is not much marketing to be done around this point, but brokers should consider negotiating this additional coverage without bothering their clients to establish whether they want the extra cover or not. Just arrange it.
As for stockholding, I trust that the Stock Declaration Conditions apply and that you have set the sum insured higher than the expected stockholding value. And remember that the wording requires monthly or quarterly declarations – be sure the timing doesn’t clash with your client’s holiday plans.
Hired vehicles
Most people say they don’t have money at this time of year, yet many have plenty of money to go away on holiday – flying down to their destinations and hiring a vehicle at the airport!
How many of your clients understand that their motor policy does not extend to cover a vehicle hired in? How many people have actually read the hire contract, before signing it? And how many will do so this year just minutes from starting their holiday? I suggest brokers at least advise their clients of the cover exclusions.
But the value add would be to negotiate some form of ‘Vehicle Hired-In’ coverage with the personal lines insurer to protect your clients financially. It doesn’t have to be a long process of establishing which clients want or need it. Just arrange it.
Freezer contents
Most householders’ policies provide coverage for damage to the contents of fridges and freezers if the power is switched off due to an accidental event. But what happens if the power utility provider turns the power off, but a mini power surge trips the earth leakage when the power is turned on again, and the power in the house is not turned on?
The smell and damage could be blamed on power surge, or was it the earth leakage trip? Brokers would have a busy January arguing that the loss was proximately caused by a power surge. But the power surge first amount payable is small compared with the cost of replacing the fridge and freezer.
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