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As a real estate professional, what coverage do you recommend?

To all the real estate professionals who are helping their customers with their insurance - PLEASE PLEASE stop recommending your customers get the insurance for the amount of the loan. I, as an insurance agents, recognize the need to get the deal closed. I want to get everything done as quickly as possible too. But when you recommend that your customer gets enough insurance to cover their loan, when they become my prospect, it makes it very difficult for me, as an insurance professional, to recommend the CORRECT coverage for them.

In actuality, what you should be recommending to YOUR customers is RECONSTRUCTION COST. Reconstruction cost is the amount of insurance that it would take to rebuild the home from the ground up. If that home was totally destroyed, reconstruction cost would rebuild that home, in that same location, exactly as it was before the loss. So I ask you to continue to send the referrals to me, but as far as the recommendations here's a quick little line you can use to help us keep the customer on our team - "Kenneth is very good at what he does. He will find the right insurance for you and get you the best price he possibly can right up front. No games."

I look forward to our team continuing to prosper.

Posted by Kenneth Thames on 04/11/2008 01:07 AM

Comments (3)

reconstruction cost, replacement cost, homeowners insurance, gary, northwest indiana, portage

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3 Comments on As a real estate professional, what coverage do you recommend?

We actually do not recommend any. We give them the list of 3-4 insurance companies, and they then work between themselves.

But your explanation is meaningful, thank you. It is good to understand things even if you do not make recommendations.

04/11/2008 01:37 AM

by Jon Zolsky (FunCoast Realty LLC)

I have had to refer insurance to a client very few times because they usually already have an agent or company they deal with. But I agree with Jon, it is better to recommend 2-3 agents and let the client make the decision.

On the other hand, I have recommended friends and past clients to a particular agent if asked for a personal endorsement.

BTW-if asked by a client about specifics my standard is "I am a Real Estate Professional and it is important that I keep up to date in my industry, I couldn't even try to keep up with what is happening in the Insurance industry as well. Please consult an Insurance professional and they will give you the most appropriate advice for your position"

Great post and advice for the forum.

04/11/2008 08:23 AM

by Stephen Luckett (ExecuHome Realty)

Kenneth: As an investor, I know the value of having the correct amount of insurance. We insured to the sale value not the purchased amount.

I read on your profile a testimony from a previous client that DID NOT listen to your advice. People are sometimes shortsighted and it is up to the professional to the best of their ability to direct them in the right way. I think agents should also know this since they may be the first trusted source the client is in contact with. If they don't know, the client may think the agent is trying to oversell them. Great post.

04/16/2008 03:56 AM

by Tara Colquitt, Consumer Credit Advocate (The Credit Depot)

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