The single most frustrating part of selling insurance is selling it. Some people think insurance agents are simply selling exaggerated "what if" scenarios for profit. Some people think it's fear mongering at its finest, when really, what most agents are trying to do is offer protection and security for families in the unforeseen face of tragedy.
I have a very close friend who lost everything in an apartment fire a while back. She'd heard of renter's insurance but never really thought she'd need it and money for something didn't really need at the moment was just not available. The night of the fire she said she laid in the middle of the street sobbing as firefighters fought the blaze. The only things she made it our with was herself, her pets and regret. It took her years to put her life back together, physically and financially and now that she's a homeowner, she will never take that chance again.
We've all heard stories. We know people who've experienced terrible luck when it comes to natural disasters or accidents in the home. Some were prepared and some were not. People who thought they'd made enough preparations and some who thought they didn't need to prepare. Either way, both found themselves sobbing in the street, the only difference is that some were going to have a much easier recovery than others because they were insured. Here are a few reasons why some people hesitate to go all in on homeowner's insurance.
1. IT'S EXPENSIVE
The cost of homeowner's insurance depends on several factors. Things like where you live - not only what state and town you live in, but also, is your home near a river that could floor or is it by a forest that's a risk for wildfires? The size of the home, construction type and costs for reconstruction of the home should something happen. Also, how expensive is it for you to get building materials to your home? People who live in remote areas will pay more for construction, so that all gets factored in as well.
2. IT ISN'T MANDATORY
Most people who've sat down and signed a mortgage for their home most likely did so sweating bullets. It's a massive investment and an ever larger long term commitment. Soon most of your money will soon be going toward paying the mortgage or updates about be made on your home. It's likely that many people either plan to purchase homeowners insurance once they're more financially stable and either never do, or don't purchase it in time.
3. IT'S A "SCAM"
Many people, homeowner's included, feel that the stories insurance agents tell clients to get their business aren't trustworthy. They feel that once an agent gets their business, they may not be much help on the back end should disaster strike. Claims adjusters get a really bad rap for being the middleman on cases where customers don't come out happy on the other end. But it's important to note that every situation is different and most of the time clients are very happy with the outcome.
Whether you're trying to sell insurance to homeowners or you're a homeowner currently going without insurance for any one of these reasons, keep in mind what's at stake here. Yes, you could go for years without needing homeowner's insurance, but in the event that you should one day need it, you'll be very glad that your home and the possessions in it are protected.