It is always difficult to explain to a customer who took out unoccupied property insurance from you some time ago that at the time of a claim, he is only insured for fire, aircraft, explosion and earthquake. Sure, if you backed up your advice with the right words at the time, your company’s PI policy is clear, but if you haven’t, it is likely that a customer who realizes that they have no place to whom he can go financially may decide to pursue you.
Customers have a habit of choosing the cheapest option, but beyond the premium, they don’t really understand the impact of this decision until it’s too late. Some time ago we decided not to sell limited risk insurance for existing structures, although our customers protested poorly about the premium covering all risks. We have found that the vast majority are willing to pay for all risks if they clearly understand the differences between the two policies and why we do not offer them.
Offering FLEA products focuses the customer away from coverage considerations and firmly on premium. If you take this advice in the context that less than 20% of our claims are fire-related, you will understand why a firmer line at the point of sale is doing you and your customer a favor.
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