The Five Reasons Expiring Homeowner Policy Holders Switch

When a homeowner signs up for an insurance policy, the insurance company’s relationship with that customer is only beginning. Signing an initial policy may lead to a lifetime of company loyalty–or, a less-than-satisfied customer may find a different provider after a policy expires.

If you’re noticing that policy-holders are switching agencies as your policy expires, consider these give reasons:

They’re Looking for a New House

Homeowners may see their expiring policy as an incentive to change homes, or at least, amp up the house hunt.

This is a crucial time in your relationship with these customers; remind them that they can open a new policy with you, and make sure the road is paved for a smooth transition.

They Want to Leave Your Policy Because They Want a Lower Rate

It may be that the homeowner have heard that they can save money by switching policies.

There are two strategies you should employ: monitor your competition and keep your rates comparable, and make sure you communicate to your customers all the benefits your policy offers them.

They Are Unhappy with Your Agency

From customer service, to billing protocols, to accessibility of web services–customers are constantly evaluating the realities of their homeowner policy.

Consider every interaction a policy-holder has with your insurance company an important customer service experience.

Consider launching a survey campaign (via direct mail and online) to measure policy-holder satisfaction.

Once the data is gathered, use it to make meaningful changes, when necessary.

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There Was a Change to Your Terms and Conditions Policy

A routine update to terms and conditions in your policies should be taken seriously and made crystal clear to your policy-holders.

Customers are on the hunt for possible fees or penalties they’d have to pay, and looking for policies with fewer pitfalls or red tape. (Note that what one customer may consider “unfair” may be standard industry practice. Just be prepared to be evaluated from this mindset.)

Communication is key! Be open and up-front about what is changing.

They Felt No Brand Loyalty

Putting care into each interaction with policy holders is crucial when beginning a relationship with them–especially early on.

When potential customers call up to ask for quotes, assume that this is so that they can compare your rates to your competition. Be as transparent and helpful as possible, yet also promote any discounts available to the customer on the line.

You want to foster a reputation as an insurance agency that answers questions and maintains competitive rates.

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