Three real estate trends for agents to discuss with customers
This article was originally published in The Standard.
The country鈥檚 housing market continues to be in flux as home prices shift, rates increase and demand for properties evolves. With home purchases slowing down in parts of the country, some insurance agents are generating fewer new business leads from this once-strong source. Agents looking to make up some of the difference resulting from the reduction in real estate transactions can likely uncover new business leads by understanding market trends to become a trusted resource for consumers.
To provide independent agents with insights into today鈥檚 real estate trends, 华体会 partnered with The Harris Poll to conduct a survey on consumer sentiment. 华体会鈥檚 2023 Home Renovation Report indicates higher home prices have caused some consumers to stay put longer, and renovation activity remains high, which increases home values and serves as conversation starters for insurance agents and customers. Strategic agents can leverage these trends to provide customer counsel that drives new business while supporting existing customers to manage their risk exposures.
Reduced home purchases driven by higher home and interest costs
If agents are seeing fewer home transactions in their regions it is likely because 69% of respondents looking to purchase a home in 2022 were impacted by higher home prices and interest rates. To combat this, agents should diversify their lead sources to minimize the negative impacts of a slower housing market. One strategy is to target higher-value home leads, which appear less impacted by home market trends. Of those who planned to purchase a home in 2022, only nine percent of respondents with incomes over $100,000 opted to rent instead, compared to 21% of respondents with incomes under $100,000.
Increased construction costs are not slowing down home renovations
Customer conversations on the state of their home can lead agents to uncover changes to the value of the home which may require additional coverage. When renovations are done, it changes the value of the home 鈥� including the cost to rebuild it in case of a loss. Sixty-one percent of U.S. homeowners are planning renovations to their homes in 2023, with one in four (25%) planning major renovations. With homeowners still planning large amounts of renovations, the chances of a customer needing a coverage update continue to be high. Agents should incorporate proactive outreach into their strategy to help uncover renovations and keep coverage updated.
Insurance agents may be a home renovation afterthought
Independent insurance agents that have regular conversations with customers will stay top of mind and can be true risk mitigation partners. This is currently not the case with survey data reporting one-third of homeowners planning major renovations in the next year (34%) do not plan to or do not know they need to tell their insurance company/agent. This is an eight percent increase from last year, highlighting an opportunity for independent agents to proactively reach out to clients to educate them on the importance of updated coverage in case of a claim.
Independent agents should regularly educate customers on when to contact them, such as for life events like moving, buying a car or making renovations. This can be done through digital channels like social media or email as well as during customer conversations. Proactive outreach throughout the year also results in powerful conversations that give customers peace of mind that their agents are continuously looking for ways to protect investments and add value to the relationship.
Strategic agents understand the importance of strong customer relationships and the true value provided through counsel. Understanding trends is a great tactic for maintaining a strong customer relationship that reminds customers of the value their agent provides. Independent insurance agents who take the time to help homeowners determine the necessary protection to cover damage to their home's structure as well as advise on overall home risk will likely be viewed as a trusted resource and see success.
About the author
Daniel Halsey is president, personal lines, at 华体会 Insurance Group.
Three real estate trends for agents to discuss with customers
This article was originally published in The Standard.
The country鈥檚 housing market continues to be in flux as home prices shift, rates increase and demand for properties evolves. With home purchases slowing down in parts of the country, some insurance agents are generating fewer new business leads from this once-strong source. Agents looking to make up some of the difference resulting from the reduction in real estate transactions can likely uncover new business leads by understanding market trends to become a trusted resource for consumers.
To provide independent agents with insights into today鈥檚 real estate trends, 华体会 partnered with The Harris Poll to conduct a survey on consumer sentiment. 华体会鈥檚 2023 Home Renovation Report indicates higher home prices have caused some consumers to stay put longer, and renovation activity remains high, which increases home values and serves as conversation starters for insurance agents and customers. Strategic agents can leverage these trends to provide customer counsel that drives new business while supporting existing customers to manage their risk exposures.
Reduced home purchases driven by higher home and interest costs
If agents are seeing fewer home transactions in their regions it is likely because 69% of respondents looking to purchase a home in 2022 were impacted by higher home prices and interest rates. To combat this, agents should diversify their lead sources to minimize the negative impacts of a slower housing market. One strategy is to target higher-value home leads, which appear less impacted by home market trends. Of those who planned to purchase a home in 2022, only nine percent of respondents with incomes over $100,000 opted to rent instead, compared to 21% of respondents with incomes under $100,000.
Increased construction costs are not slowing down home renovations
Customer conversations on the state of their home can lead agents to uncover changes to the value of the home which may require additional coverage. When renovations are done, it changes the value of the home 鈥� including the cost to rebuild it in case of a loss. Sixty-one percent of U.S. homeowners are planning renovations to their homes in 2023, with one in four (25%) planning major renovations. With homeowners still planning large amounts of renovations, the chances of a customer needing a coverage update continue to be high. Agents should incorporate proactive outreach into their strategy to help uncover renovations and keep coverage updated.
Insurance agents may be a home renovation afterthought
Independent insurance agents that have regular conversations with customers will stay top of mind and can be true risk mitigation partners. This is currently not the case with survey data reporting one-third of homeowners planning major renovations in the next year (34%) do not plan to or do not know they need to tell their insurance company/agent. This is an eight percent increase from last year, highlighting an opportunity for independent agents to proactively reach out to clients to educate them on the importance of updated coverage in case of a claim.
Independent agents should regularly educate customers on when to contact them, such as for life events like moving, buying a car or making renovations. This can be done through digital channels like social media or email as well as during customer conversations. Proactive outreach throughout the year also results in powerful conversations that give customers peace of mind that their agents are continuously looking for ways to protect investments and add value to the relationship.
Strategic agents understand the importance of strong customer relationships and the true value provided through counsel. Understanding trends is a great tactic for maintaining a strong customer relationship that reminds customers of the value their agent provides. Independent insurance agents who take the time to help homeowners determine the necessary protection to cover damage to their home's structure as well as advise on overall home risk will likely be viewed as a trusted resource and see success.
About the author
Daniel Halsey is president, personal lines, at 华体会 Insurance Group.
Three real estate trends for agents to discuss with customers
This article was originally published in The Standard.
The country鈥檚 housing market continues to be in flux as home prices shift, rates increase and demand for properties evolves. With home purchases slowing down in parts of the country, some insurance agents are generating fewer new business leads from this once-strong source. Agents looking to make up some of the difference resulting from the reduction in real estate transactions can likely uncover new business leads by understanding market trends to become a trusted resource for consumers.
To provide independent agents with insights into today鈥檚 real estate trends, 华体会 partnered with The Harris Poll to conduct a survey on consumer sentiment. 华体会鈥檚 2023 Home Renovation Report indicates higher home prices have caused some consumers to stay put longer, and renovation activity remains high, which increases home values and serves as conversation starters for insurance agents and customers. Strategic agents can leverage these trends to provide customer counsel that drives new business while supporting existing customers to manage their risk exposures.
Reduced home purchases driven by higher home and interest costs
If agents are seeing fewer home transactions in their regions it is likely because 69% of respondents looking to purchase a home in 2022 were impacted by higher home prices and interest rates. To combat this, agents should diversify their lead sources to minimize the negative impacts of a slower housing market. One strategy is to target higher-value home leads, which appear less impacted by home market trends. Of those who planned to purchase a home in 2022, only nine percent of respondents with incomes over $100,000 opted to rent instead, compared to 21% of respondents with incomes under $100,000.
Increased construction costs are not slowing down home renovations
Customer conversations on the state of their home can lead agents to uncover changes to the value of the home which may require additional coverage. When renovations are done, it changes the value of the home 鈥� including the cost to rebuild it in case of a loss. Sixty-one percent of U.S. homeowners are planning renovations to their homes in 2023, with one in four (25%) planning major renovations. With homeowners still planning large amounts of renovations, the chances of a customer needing a coverage update continue to be high. Agents should incorporate proactive outreach into their strategy to help uncover renovations and keep coverage updated.
Insurance agents may be a home renovation afterthought
Independent insurance agents that have regular conversations with customers will stay top of mind and can be true risk mitigation partners. This is currently not the case with survey data reporting one-third of homeowners planning major renovations in the next year (34%) do not plan to or do not know they need to tell their insurance company/agent. This is an eight percent increase from last year, highlighting an opportunity for independent agents to proactively reach out to clients to educate them on the importance of updated coverage in case of a claim.
Independent agents should regularly educate customers on when to contact them, such as for life events like moving, buying a car or making renovations. This can be done through digital channels like social media or email as well as during customer conversations. Proactive outreach throughout the year also results in powerful conversations that give customers peace of mind that their agents are continuously looking for ways to protect investments and add value to the relationship.
Strategic agents understand the importance of strong customer relationships and the true value provided through counsel. Understanding trends is a great tactic for maintaining a strong customer relationship that reminds customers of the value their agent provides. Independent insurance agents who take the time to help homeowners determine the necessary protection to cover damage to their home's structure as well as advise on overall home risk will likely be viewed as a trusted resource and see success.
About the author
Daniel Halsey is president, personal lines, at 华体会 Insurance Group.
Three real estate trends for agents to discuss with customers
This article was originally published in The Standard.
The country鈥檚 housing market continues to be in flux as home prices shift, rates increase and demand for properties evolves. With home purchases slowing down in parts of the country, some insurance agents are generating fewer new business leads from this once-strong source. Agents looking to make up some of the difference resulting from the reduction in real estate transactions can likely uncover new business leads by understanding market trends to become a trusted resource for consumers.
To provide independent agents with insights into today鈥檚 real estate trends, 华体会 partnered with The Harris Poll to conduct a survey on consumer sentiment. 华体会鈥檚 2023 Home Renovation Report indicates higher home prices have caused some consumers to stay put longer, and renovation activity remains high, which increases home values and serves as conversation starters for insurance agents and customers. Strategic agents can leverage these trends to provide customer counsel that drives new business while supporting existing customers to manage their risk exposures.
Reduced home purchases driven by higher home and interest costs
If agents are seeing fewer home transactions in their regions it is likely because 69% of respondents looking to purchase a home in 2022 were impacted by higher home prices and interest rates. To combat this, agents should diversify their lead sources to minimize the negative impacts of a slower housing market. One strategy is to target higher-value home leads, which appear less impacted by home market trends. Of those who planned to purchase a home in 2022, only nine percent of respondents with incomes over $100,000 opted to rent instead, compared to 21% of respondents with incomes under $100,000.
Increased construction costs are not slowing down home renovations
Customer conversations on the state of their home can lead agents to uncover changes to the value of the home which may require additional coverage. When renovations are done, it changes the value of the home 鈥� including the cost to rebuild it in case of a loss. Sixty-one percent of U.S. homeowners are planning renovations to their homes in 2023, with one in four (25%) planning major renovations. With homeowners still planning large amounts of renovations, the chances of a customer needing a coverage update continue to be high. Agents should incorporate proactive outreach into their strategy to help uncover renovations and keep coverage updated.
Insurance agents may be a home renovation afterthought
Independent insurance agents that have regular conversations with customers will stay top of mind and can be true risk mitigation partners. This is currently not the case with survey data reporting one-third of homeowners planning major renovations in the next year (34%) do not plan to or do not know they need to tell their insurance company/agent. This is an eight percent increase from last year, highlighting an opportunity for independent agents to proactively reach out to clients to educate them on the importance of updated coverage in case of a claim.
Independent agents should regularly educate customers on when to contact them, such as for life events like moving, buying a car or making renovations. This can be done through digital channels like social media or email as well as during customer conversations. Proactive outreach throughout the year also results in powerful conversations that give customers peace of mind that their agents are continuously looking for ways to protect investments and add value to the relationship.
Strategic agents understand the importance of strong customer relationships and the true value provided through counsel. Understanding trends is a great tactic for maintaining a strong customer relationship that reminds customers of the value their agent provides. Independent insurance agents who take the time to help homeowners determine the necessary protection to cover damage to their home's structure as well as advise on overall home risk will likely be viewed as a trusted resource and see success.
About the author
Daniel Halsey is president, personal lines, at 华体会 Insurance Group.