How to Become the Best Home
Insurance Agent in America
TLTR: A home insurance agent doesn’t have it easy in 2021.
This article discusses nine awesome tips to help you achieve your sales targets and consistently generate high-quality leads.
Homeowners don’t need to get insurance, but if they’re paying a mortgage, then their lenders will ask them for proof of insurance. That’s where you, a home insurance agent, come in. Usually, people see buying insurance as a hassle, a mandatory evil. You’re here to show them that insurance can actually be a fast, easy, cheap, and fun process.
But even the most creative insurance agent can hit a wall sometimes. Here are a few handy tips for you to follow for gaining high-quality leads. Home insurance will never be hard to sell ever again!
In this blog
What Does a Home Insurance Agent Do?
A home insurance agent simply sells homeowners insurance. Of course, the job description isn’t as simple as that. An agent works directly with their clients to understand their risks, negotiate policies and prices, and offer discounts & after-sales services. People don’t necessarily need insurance agents to buy policies, but it sure does make the process easier and faster.
For instance, a new homeowner contacts you, a home insurance agent, and asks for help regarding insurance. You will work directly with them and figure out what their home needs. Is the location unsafe and prone to break-ins and robberies? Was the house’s roof recently upgraded? Are the walls moldy?
Next, you will pull quotes from the insurance companies you represent and present them to your client. Let them know which discounts they are eligible for. Help them compare quotes and decide the policy they want to buy.
In other words, you act as a bridge between homeowners and insurance companies. Every successful new business or renewal will give you a healthy commission. The commission rates vary from company to company. For example, Covered by SAGE offers its agents 95/5 splits on new businesses and 50/50 splits on renewals.
How to Get a Home Insurance Agent License
You need a home insurance agent license if you’re planning to sell home insurance. Research state requirements and review pre-licensing materials before sitting for an insurance agent license exam.
You don’t really need a college degree to qualify for the job. It would help if you had great interpersonal skills and a knack for connecting with your customers. However, a degree in risk management, business skills, and accounting can prove to be useful in the long run.
If you have a license to sell in California, you can’t use the same license to sell in Ohio. Therefore, you will need to sit for multiple exams if you plan to sell in multiple states.
Note: After you pass the exam, the state insurance board will perform a background check on you. If you have a criminal record, you may not get your license.
9 Tips to Increase Home Insurance Leads
Become a Home Insurance Discount Expert Agent
Not everyone will love insurance, but they will love discounts. Business Wire reports that a study conducted by Coupons.com and Claremont Graduate University found out that receiving gifts, discounts, and coupons made shoppers happier by 11%.
If you’ve been selling insurance for a while, you know that your clients care about the prices the most. Make sure that you know all the discounts available by different insurance companies and how to qualify for them. If there’s way too many of them to memorize, keep a handy cheat sheet with you.
Let your clients know that you’re offering them a free home insurance quote just because they’re letting you quote them. Surprise them with a discount call. Have them know that getting discounts is not common and that you’re amazed at the number of discounts they’re eligible for.
Of course, don’t lie to your customers about the discounts and the numbers. If you show them a lower price on home insurance initially and later hike it up, your customers will simply go to other agents.
Host or Join a Regular Sales-Storming Session with Fellow Home Insurance Agents
Although there is quite a lot of negative buzz around the effectiveness of brainstorming sessions, we still recommend having regular sessions. First of all, you get to meet your peers and throw ideas around together. Secondly, one great session is all it takes to sculpt a great sales pitch for yourself.
Forbes recommends powering your brainstorming sessions with the following tips:
- Get your participants to do the necessary research and background work before beginning.
- Make the goal of the session clear.
- Have trained professionals and experts join your sessions.
- Manage the sessions effectively so everyone is focused on the main goal.
- Develop stimulating exercises to help participants.
- Acknowledge and thank the participants.
- Don’t go home empty-handed. Align the end product and organize it so you can always come back to it.
Brainstorming sessions can help you understand what works and what doesn’t. Try to come up with out-of-the-box ideas and try role-playing as an agent or client with your peers.
Actively Listen; Don’t Just Talk as A Home Insurance Agent
Research carried by HubSpot revealed that 69% of the total surveyed buyers wanted to be listened to, and 61% preferred sellers who weren’t too pushy.
Most homeowners aren’t looking for insurance; they’re looking for someone to listen to their worries. They don’t know what would happen if a tree could fall through their roof and destroy their abode. They’re also worried that an accidental fire could burn their house down.
Remember that you have two ears to listen to. Always be receptive to what your customers have to say. They’re more likely to bond with you if you listen to them. Moreover, once you understand their woes, you can give them better solutions as well.
Your presence on social media can drive your home insurance sales as well. Do you listen in on what your clients say on the internet? A survey by Twitter found that when a business interacts with a customer’s tweet, they are more willing to spend more on their products.
Study Your Clients and Do the Research as A Home Insurance Agent
What are your client’s preferences? Do they own a ranch-style home or a bungalow? Are they looking for full coverage or just enough to cover their liabilities? Did your clients just become new homeowners? Once you’ve answered these questions, selling homeowners insurance will be that much easier.
Not all homeowners will need the same kind of insurance. A one-storied house will be cheaper to insure than a multistoried home. Usually, older homeowners prefer bungalows, while newer homeowners opt for a contemporary style. Your home insurance sales pitch must cater to the client you’re selling to.
Have a Script Ready and Practice Your Sales Pitch
When you’re delivering a pitch, it’s probably one of the first times your clients are talking to you. DON’T wing it. A sales script is paramount to closing a deal. Start with warm greetings, then transition to open-ended questions and a small tidbit your clients can relate to.
Successful homeowners insurance agents know that a flexible script can go a long way. Prepare more than one script so that if one doesn’t seem to go great, you can switch to the other one. If your clients don’t seem receptive, improvise a little. Don’t scare them with insurance jargon, and keep the conversation light.
Understand that you’re not selling homeowners insurance; you’re selling yourself. There are hundreds of home insurance agents they can buy from. Show them why they should be buying from you.
Following Up Is Extremely Important
A follow-up call will likely secure a sale for you. The research by HubSpot mentioned above claims that 42% of the sellers usually struggled the most while establishing urgency for making a sale. Usually, buyers will research their options, consider a few sellers to reach out to, and buy from the seller that responds the fastest.
After a successful first pitch to your prospects, send a short email or even a text message. Put the ball in their court; Ask them which policy they want, and not if they want a policy. Cater to their core needs, but embellish your product with discounts, free quotes, after-sales services, and your expertise in insurance.
Market To New Homeowners as A Home Insurance Agent
New homeowners usually have no idea what coverage they want. Most of them may have mortgages and will need insurance because it’s mandatory for them. It’s your chance to shine the light on the importance of homeowners insurance. Make them aware of their exposure to risks. They will probably welcome expert advice in regards to protecting their newly-owned house.
Partner With the Top Home Insurance Companies
As a captive agent, you will have good financial backing and a reputed company representing you. Your leads will certainly follow you just because of these reasons. However, you won’t be able to get multiple quotes and compare prices from companies other than the ones your franchise wants you to sell.
On the other hand, an independent insurance agent has the freedom to partner with multiple insurance companies. The biggest advantage is that you have more products on your shelf to help your clients make the right purchase.
Ask mortgage providers to recommend you to the homeowners looking for insurance. Mortgage lenders don’t hand out loans without proof of insurance. If they send homeowners your way, it could be easy to sell to them.
Add Your Listing in An Insurance Directory as a Home Insurance Agent
Networking is an important skill to hone as a home insurance agent. Insurance aggregators, insurance clusters, and insurance agencies exist to help insurance agents sell better. Another great way of increasing your home insurance leads is by joining an insurance directory.
An online insurance directory is certainly like the Yellow Pages. Adding your listing in a directory will give you better visibility and showcase your expertise locally.
For example, Agency Height’s insurance directory only requires the buyer to enter the location and type of policy they’re looking for. Once buyers enter their information, virtually hundreds of available agents in their vicinity are listed.
Selling insurance isn’t hard, but keeping up with your sales targets and meeting daily goals can be challenging. Always remember to keep a positive attitude and never stop adding to your skillset. Every day, new agents join the workforce; give your clients a solid reason to stay with you.
We’re looking for changemakers in the insurance agency. Do you have what it takes? Please take a look at our membership plans.
Frequently Asked Questions (FAQs)
Is Selling Home Insurance from Home Possible?
Of course! Selling insurance from home is never a bad idea. You get to multi-task, save time on the commute, work with a flexible schedule, and save up on retail requirements. If you’re looking for insurance jobs, work from home has quickly become the norm in recent years.
Use insurance agency management systems and tools to work more efficiently. We recommend creating daily or weekly goals and adhering to a work schedule.
How to buy home insurance leads?
We don’t recommend buying home insurance leads. Third parties will sell you millions of leads, but how can you be sure that they’re all still looking for home insurance? Sure, buying is easier and faster for you. But nothing can beat the quality of the leads you’ve curated yourself. Since you’ve chased your leads and developed a connection with them, they’re more likely to buy from you.
However, buying home insurance leads could be an alternative if you’re in a pickle and looking to warm up cold leads. Just make sure to vet your options before any transactions.