I have a friend, Doug Newman, the Owner of EPS Insurance in Colorado. I was reading his blog about addressing these must-knows and was very impressed with his ability to simplify these three extremely important things that so many people just don't understand when shopping for their new homeowner's policy, from the realtor to the buyer and everyone else in the middle.
With his permission, I'm sharing his words here, be sure to read the second part of #2 twice:
"A successful real estate transaction is quite similar: it is a team effort where everyone has a role and must strive for perfection in executing their respective duties. This includes the realtor, the mortgage lender, the insurance agent, the inspector, the appraiser, and the title professional.
With this in mind, there are three things every realtor and mortgage lender must know about insurance.
1) It is imperative that the insurance agent talk directly to the client. There are certain conversations that the agent needs to have with the client. Just like the realtor and mortgage lender, the insurance agent is uniquely equipped to have these specific conversations. And there are dozens of factors that determine the price of a policy. Furthermore, different things are going to be important to different clients. Just like you, we must skillfully position our approach.
2) A professional agent will also insist on having a detailed discussion of car insurance with the client. First of all, bundling car and home insurance will almost always save the client money. Second, and far more importantly, if the client is ever in a serious car accident – this can happen to even the best drivers - and does not have sufficient car insurance coverage, they can be sued personally. That means they can lose that dream home you have helped them buy. This can also happen in the event the client is not at fault. If the client is hit by an uninsured driver and does not have proper coverage, the financial fallout can be life-changing.
3) This third point applies more to mortgage lenders. Please never give estimates on insurance. This doesn't happen often. However, if you give an estimate of, say, $3000 per year for home insurance and the agent can't find a policy for less than, say, $4000 per year, you risk derailing the entire transaction." -Doug Newman