Catastrophic weather events, like the recent LA floods and wildfires around the region, are no longer seasonal anomalies. These severe events have become an ever-changing reality for Californians and others living and working in the western US. This creates both an opportunity and a challenge for independent agents. Find out more about how agents can help policyholders manage catastrophic weather events in this blog.
Ways Agents Can Help Policyholders Manage Catastrophic Weather Events
Here are some ways that agents can proactively help homeowners and business owners prepare for and mitigate the impacts of severe storms:
Review coverage for catastrophic weather events proactively.
Talk with policyholders before the next storm or wildfire hits. It is better to discuss coverage needs and disaster preparedness before there is an imminent risk of danger. Use renewal meetings and policy reviews as opportunities to raise awareness. Try sending personalized messages to policyholders based on their coverage needs. To position yourself as an advisor and expert, offer checklists based on the threats in your region, like wildfires, earthquakes, and floods.
Identify and close coverage gaps.
Helping policyholders understand what their policies do and do not cover is a critical step. Many policyholders assume they will be covered if a loss happens without truly understanding conditions, exclusions, and gaps in their coverage. As an agent, it is important to discuss coverage gaps and ensure clients know before a loss happens if they will have coverage. If policyholders decline critical coverages, be sure to retain the signed coverage declination form in their file in case an E&O claim is filed.
Some coverages and risks to consider discussing with policyholders include:
- Flood insurance
- Wildfire risk
- Business interruption coverage
- Parametric coverage
Promote risk mitigation and risk management.
One of the best ways to prepare for catastrophic weather events is with advanced preparation, and many insurers now offer incentives to policyholders who engage in proactive risk mitigation, especially in higher-risk areas. Agents can help policyholders by discussing incentives for risk management efforts like installing fire-resistant roofing or vents, creating defensible space around properties, and elevating mechanical equipment or using flood barriers. Share local or regional resources with policyholders, like California’s Wildfire Mitigation Financial Assistance Program, which offers education and funding for mitigation efforts.
Develop relationships with local risk management experts.
Build a network of local resources, like wildfire risk assessors, disaster recovery experts, post-storm clean-up services, floodplain engineers, and local claims adjusters. Having these partnerships in place before a disaster can add value to policyholder relationships since you will be able to connect policyholders with emergency services quickly. This integrates you as an essential part of the client’s resilience plan. Agents can feature thought leadership from local experts and the Insurance Department in their newsletters and on their websites. Consider hosting a webinar annually before the start of wildfire season, for example, to educate policyholders on risk mitigation, resources, and policy details.
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