For many buyers, homeowners insurance is one of the least understood parts of the home buying process. As their agent, you play a key role in helping them navigate the basics, understand why it matters, and feel confident about their coverage decisions. By having the right conversations early, you can prevent confusion at closing and add tremendous value to your client relationships.
Start the Conversation Early
Bring up homeowners insurance during the initial buyer consultation or as soon as your clients get pre-approved. Many first-time buyers are unaware that insurance is required by their lender before closing. Explain that insurance protects not just the property, but also their personal belongings and financial security. Setting expectations early gives them time to compare options and avoid last-minute stress.
Explain What Homeowners Insurance Covers
While you are not an insurance agent, having a basic understanding of coverage helps you guide clients in the right direction. Most policies include protection for the structure, personal property, liability, and additional living expenses. Help buyers understand that not every type of damage is covered. For example, floods or earthquakes require separate policies. This helps them ask better questions when speaking with an insurance professional.
Connect Them with Trusted Resources
Buyers often do not know where to start when shopping for insurance. Provide them with a few reputable local contacts or recommendations, but always remind them that they should choose whoever they feel comfortable with. Partnering with trusted insurance professionals strengthens your network and ensures your clients receive knowledgeable guidance.
Encourage Buyers to Review Coverage Limits
Encourage buyers to look beyond the lowest premium. Discuss the importance of insuring their home for the full replacement cost rather than just market value. Remind them to consider their deductible and how it affects monthly payments and out-of-pocket expenses. A quick conversation about these details helps buyers understand that the cheapest policy is not always the best one.
Discuss the Role of Insurance in Closing
Explain that proof of homeowners insurance is typically required before closing. Encourage buyers to start their policy shopping process early in the transaction so that coverage is in place before their lender requests final documentation. This simple reminder can prevent delays and demonstrate your professionalism.
Help Them Think About Long-Term Protection
Once your clients have purchased their home, follow up and remind them to review their policy annually. Encourage them to adjust coverage after renovations, upgrades, or large purchases. These small touches show that you care about their long-term success and help you stay top of mind for future referrals.
Bottom Line
Guiding your buyers through homeowners insurance is part of providing full-service representation. When you take the time to educate, connect them with resources, and help them prepare, you show that you are more than a salesperson—you are a trusted advisor.
At Watkins Real Estate Associates, we help agents build confidence and professionalism by teaching them how to guide clients through every step of the buying process. If you want to elevate your client experience and stand out as a knowledgeable resource, connect with us today at JoinWREA.com.
