By Jeffrey R. Wyrsch, vice president ofpersonal lines for Van Dyk Group. 

“Nobody likes surprises.”  We hear these words oftenand in so many phases of our lives. A surprise means someone eitherdidn't do his homework or did not communicate in a timelyfashion.

Related: Read another column by Jeffrey R. Wyrsch“Weathering the Storm.”

One of the more troublesome and disliked surprises occurs when ahomeowner has a loss of his property or prized possessions:

• I thought I was covered
• No one told me I didn't have coverage.
• I thought I had more coverage
• My deductible is what
• When did my policy change?

Our clients all expect the lowest premiums with the highestcoverages and no deductible. In an ideal world, this would be whatour clients would expect and what we should provide.

Homeowners see TV commercials every day suggesting that is thecase for anyone who buys coverage with a certain company. It allseems so quick and easy. All you have to do is make one phone callor spend 15 minutes on a computer and all your troubles are solved.Hassle free. Everything covered—no questions asked. It's just thatsimple, right?

Related: Read the article “Go Above and Beyond” byJeffrey R. Wyrsch.

Now let's come back to earth. It's hard to fathom the extent ofcatastrophes Americans have had to face over the past few years. Wehave all experienced the force of Mother Nature in some form oranother. Record claims resulting in increased premiums have beenincurred by just about every insurer providing policies in the U.S.Rain, floods, lightning, hail, forest fires, drought, snow, ice,sinkholes, earthquakes, tornadoes, hurricanes, mudslides. 

 This list doesn't include man-made claims such asfraud, identity theft, robbery, arson, negligence and accidents.Agents have to ensure that their clients are covered for whateversurprise they have to deal with.

Many articles address ways an agency can deal with surprises,but you can never hear or read enough. Outlines agencies can use intheir plans to avoid surprises should include:

1. Checklists
2. Face-to-face meetings
3. Inspections
4. Communication
5. Reviews
6. Rewrites.

Most E&O classes and advisories bring up the use ofchecklists—and for good reason. A well thought out, precisepersonal lines checklist easily spells out all of the questionsproducers and CSRs should be asking.

Ideally your checklist also will include checkpoints for forcesof nature in your region, i.e., hurricanes in coastal regions,mudslides/snow in mountainous areas, floods in river regions. Auniversal checklist with personal touches addresses potentialissues. Input from producers, CSRs and claims reps who deal withsurprises firsthand is essential.

Face-to-face meetings with both prospective and existing clientsare paramount for the clients to understand what they need toinsure and for a comprehensive explanation of the terms andconditions of their policies. It is difficult to fully outlineregional and local insurance perils via an online questionnaire orfrom nationwide service centers where the reps know little ornothing about the region you are in. This is an advantage for localagencies, which can meet with clients one-on-one to explain thepolicies and coverages and have clients acknowledge theirunderstanding with signatures and handshakes.

Related: Read the article by Jeffrey R. Wyrsch“Understand Gen Y.”

A visual inspection enhances understanding of a homeowner'sneeds. An inspection includes confirmation of square footage,amenities, pets and condition of the building and surrounding area.Obtain a survey from the client for precise measurements to ensureproperty values. An agency employee walks the property, takesmeasurements and photos and issues a written report. We often findout for the first time about swimming pools, trampolines, dogs andunfavorable conditions from these reports. Several of our companieseven accept these reports in lieu of their own.

Ideally, communication with the client does not end with theinitial face-to-face meeting. Ongoing communication helps prepare ahomeowner for surprises that may lie ahead. Any form ofcommunication is better than none—updates via specific personallines newsletters, postcard/letter direct mail campaigns,infomercials in local papers, spot radio/cable TV ads and presenceat local business, homeowner or senior expos help alert homeownersto talk with you about their policies.

A face-to-face meeting with a homeowner is ideal. There's nobetter way to prepare a homeowner about what is happening with hisinsurance. It is better to prepare clients for rising premiums inperson rather than springing the surprise when they receive theirpolicies. 

Mail postcards to personal lines clients advising them it istime for a check-up—similar to what doctors/dentists sendout.  Separate flyers in each renewal notice highlightwhat is happening in the insurance arena.

Invite clients to come into the office to review and updatetheir information to determine if policies should berevised  or rewritten. The worst-case scenario is toincrease or decrease coverages to save the client money. Eitherway, the client is the winner.

Rewriting a policy in today's climate is not always the answer,but attempting to save money can help cement the relationship.Clients are more loyal if they know you care. It is easy to assumehomeowners know what their coverages and deductibles are, but thatis often not the case.

Eliminate surprises. Let your clients know what they have, whatthey need and how they can save money while enhancing theircoverage. It may seem unnecessary for an agency to continuallyoffer these checkpoints, but it is invaluable when Mother Nature'swrath pays a visit.