In dealing with your customers, are you getting the truth,the whole truth and nothing but the truth?

We can't have our customers swear on a Bible, but trying to getthe truth, facts or omissions from our clients can be achallenge.

We all know how important it is to obtain accurate informationto provide correct coverages and recommendations. Hard toaccomplish, especially when people tell you what they think youwant to hear when you ask qualifying questions for newbusiness.

Related: read “Money Up” by PaulMorrissette.

Some questions can help clients to open up and tell the truthwhen purchasing homeowners' insurance:

• What is the residence's square footage, year built andany property updates?  These details properlyevaluate the cost to rebuild the home if that's needed. And as far as needing to know about the updates—nine outof 10 times house fires are caused by faulty electric wiring or afurnace gone bad. If there is major water loss, it's usually due toold plumbing. The roof is the first thing to go on a house duringhigh winds or a hurricane.
• Any past claims at the residence? Knowing thecustomer's prior claim history helps the insurer properly evaluatethe risk. If you received a claim for a frozen pipe and it wasnever fixed correctly, chances are there will be another claim. Although the customer is paying a premium of somethinglike $600, you're asking an insurer to be on the hook for hundredsof thousand of dollars. Would you want that same risk?
• How is the home used? Is it a primaryresidence, second home or investment property?  Anyrenovations in the near future? Is the home in “move-incondition”?  These questions align the coverage to thecorrect policy form. . All too often, the use of the home is notwhat clients tell us.
• Do you own pets? If the client has a dog, whatbreed? Dog bites are one of the top liability claims for homeownerinsurance carriers. If the customer's dog bites someone, theinsurer is potentially on the hook for hundreds of thousands ofdollars.
• Do you have a trampoline? Itdoesn't matter if there's a net around it. Will a scrawny littlenet hold a 65-pound or heavier child? Kids don't get hurt bouncingup on the trampoline—it's when they come back down. It doesn'tmatter how friendly your client is with his neighbors and theirkids. If someone is paralyzed due to a trampoline injury, expect tobe sued.
• What jewelry or collectibles do youown? If your client is married, he or she owns wedding orengagement rings. Did the client purchase a thousand-dollarpainting to spruce up the home? There are limitations on theseitems, and the customer probably doesn't want a department-storesettlement.

No matter how busy we are, if we don't ask the right questions,document and obtain sign offs, we could be in court trying todefend our actions.  The general public has no idea whatthe limitations are on their homeowner policies or how important itis to insure their investments properly

Take the time to get the facts and the truth. Try to get theprospect to answer honestly. Explain why we and the insurancecompanies need this information. Ask in a friendly, conversationalway that does not offend or put the prospect on the defensive.Educate, educate, educate—and minimize the possibility that thecustomer will face a claim that is not covered.