Renting has become more popular than ever before. Millennials, especially, prefer renting to home ownership due to the flexibility it affords them. Even with mortgage rates dropping to historic lows since the pandemic began, people are hesitant to put down their savings for a downpayment on a mortgage. After all, the future seems uncertain for many. Millions are out of a job. Even those who are working are worried about investing in real estate. Buying and selling a home during the pandemic is somewhat of a nightmare too, with virtual tours taking the place of multiple visits to make sure the home is “the one.”
Meanwhile, the market for renters insurance is growing. It’s also a very overlooked market when insurance agents look to grow their books. However, it’s time to forget what you know about renters and renters insurance. Not all renters are young and unestablished. Some renters are people with six-figure salaries and others are made up of families.
People who rent and buy renters insurance, do so to protect their belongings. A high-asset person renting an expensive home is not the same as a person renting a one room apartment in a middle-income apartment. And there are many high income renters these days, especially with the flexibility that remote work is posing for those who are employed.
While commissions on renters insurance policies aren’t necessarily the greatest, there is more to what makes a lead valuable than premium pricing alone. Below we list all the ways in which renters insurance leads can add value to your book of business.
More Likely to Close
While commissions are relatively low on renters insurance sales, they do add up. If you designate a producer to sell them in volume, you’ll be pleased with the results. There’s also good news. More than any other property and casualty line, renters insurance leads sell without much trouble. There’s much less competition for this type of business because premiums are low -- really low. But that’s not why you sell renters insurance anyway. Many agents will buy these leads to meet end-of-the-month sales goals but more importantly, renters policies are an investment in the future. If you’re building a lasting relationship with your clients, a renters policy will probably lead to other opportunities down the line.
Invest in door hangers advertising your agency and visit the apartment communities in the neighborhoods you cover. It’s trickier with homes, since it’s hard to tell if the home is owned or rented, but you could advertise both home insurance and renters insurance, so you target both in one trip. It’s the home insurance you’re after anyway, right?
Cross-sell Other Products
Think of renters policies as ‘the gateway policy.’ Once you get your foot in the door with a renters policy, you can sell any kind of insurance that you learn your client needs. Often, you’ll instantly get a car insurance policy by offering a bundle deal that is hard to refuse. This is a great way to get people to switch from their current carrier. Also, this person may have their own business and you can sell a business policy. Important questions to ask to get as many P&C policies written as possible: Do you own an RV? Would you benefit from an umbrella policy? The possibilities are endless if you also offer health and life insurance.
A renter may not always be a renter. Often, people go on to own their own homes. If you service these accounts regularly and build solid relationships with your clients, you may sell a home insurance policy in a year or two. If you contact this person every six months or so, there’s no reason you won’t be the agent to make the deal when this person needs another line of insurance. So, stay connected and stay in the loop so that your client doesn’t get wrangled into a home insurance policy by the lender or a new agent making a deal they can’t refuse. A solid relationship that goes beyond a renewal call is more important than it’s ever been. Without a doubt, it’ll make or break your upselling opportunities. Even if you do not upsell a client to a home policy, eventually you’ll probably be servicing the car insurance policy or policies for that household. There are many opportunities to upsell on car insurance, especially when someone in the household inevitably buys a new car.
SmartFinancial Renters Insurance Leads
Selling renters insurance is simply another way to grow your bottom line if you sell property and casualty lines of
insurance. SmartFinancial can provide consistent, high-quality leads to help you meet new customers and write more renters insurance policies and grow your book of clients. SmartFinancial connects agents with millions of active insurance shoppers each year. Consumers come to us, shopping for bargains, and we gather enough information to help you write renters insurance policies on apartments, rented condos and homes, loft rentals and more.