I want to offer buildings and contents to my clients……where do I start?

There are lots of compelling reasons to offer buildings and contents insurance to your client bank and there are certainly going to be some further opportunities for you going forward into 2022 when the ban on price walking from the FCA GI pricing policy paper comes into effect on the 1^st January 2022.

This should be brilliant news for advisers but if you aren't offering home insurance already, where do you start?

Simply by telling your customers you can help and by asking that one extra question....

When you have done that, having a process in place is key and we can help...

Let’s start with your customers, what do they know?

Generally, they know they must have Buildings Insurance and it makes sense to have cover for their contents too.

It has been very easy to them obtain quotes and buy BUT typically price has been the main driver even to the point where customers have deliberately entered incorrect or inaccurate information in order to generate a cheaper premium.

We agree that price is important, but it is the correct cover that meets their needs that should be the highest priority for clients (and these needs reviewed every year).

This is where you as the adviser can come in, add value and make sure your customer sees your value in the discussion; your overall advice and ongoing guidance is also worth paying for.

Even if you can't or don't want to do it yourself, work with a specialist and refer your customers over to give them the service and get the right guidance for the cover they need.

When should I bring home insurance into the process?

If you are a mortgage adviser, your clients are coming to seek your help and advice as they want to buy a new home or refinance and are looking for you to get them the best deal. This is their number one priority, and this is understood and accepted.

However, it should also be understood and accepted that you will also be discussing protection; personal protection for the customer, to protect the mortgage and to protect the home.

We would suggest that the additional services you offer and will be covering are mentioned at mortgage application stage and then at mortgage offer stage, you can provide quotes to protect the customer, the mortgage and the home.

There is a danger that if these areas of cover are mentioned too late in the process or as an afterthought, there is less chance of them being taken by the customer through you.

Fact Find

As with all areas of financial advice, fact finding is crucial and the same applies for home insurance.

You may know your clients very well and already know a great deal about them, for example:

You know they have nice watches and expensive jewellery.
Do they have personal possessions cover away from the home?

You know there is an office/gym/man cave at the bottom of the garden.
What level of outbuildings cover do they have?
And does the policy cover working from home?

If the customer already has insurance in place, look to get a copy of their existing policy which will tell you who the insurer is, what cover is in place, how much they are paying, how they are paying and when the policy is due to renew.

From this, you can the dig deeper to identify their needs and check if the cover they have in place is appropriate for what they need.

Purchases v Remortgages

For new purchases, the need for a home insurance quote is obvious as your clients are moving from property 'A' to property 'B'.

However, this is not always the case and even if they do have a policy in place, is it the right cover for what they need and what premium are they paying for that cover?

Remortgages can often be overlooked as the client is not moving home and it is assumed they will already have cover in place. It is estimated that nearly £40 billion of remortgage business is expected to mature in January 2022 [1] and anaylsis of Financial Conduct Authority data last year found that mortgage brokers lose 60% of their clients to direct lender channels when they remortgage [2] as they can contact borrowers up to 6 months ahead of the product term ending.

Look to offer a quote to every customer - for purchases, remortgages, homeowners, landlords - and look to do this every time.

Further guidance and information can be found on the following presentation links:

The opportunity is there...

Your customers' need your help and advice on all areas of protection inc. B&C – now more than ever
It doesn’t really matter who you write the business with or even if you make the sale; you are asking the question and offering your help and advice
Offer the service and then give your customers a quote that best suits their needs and circumstances
Always give your customers the option to say “No”
Use B&C to help generate new clients and contact your existing clients and review their FULL protection needs
Offering a B&C review is brilliant for initial “soft” client contact whether you are a new or experienced adviser
Write the business yourself or refer it – it’s up to you but don’t lose out
Create an ongoing and additional stream of income and repeat business

We are of course here to assist you and your business in any additional way so why not get in touch and see how we can help.