Thomas Enterprising is in a position to profit from insurance reinspections. I think it is important that I start off by saying that so that anyone who reads this understands what I’ve written.
Insurance companies should stop doing reinspections. If they would like to fix the problem they are currently having with improper wind mitigation credits the solution is easy. At the policies next renewal they should not accept the old wind mitigation form. In order to receive when mitigation credits the policyholder would have to get a new inspection. This new inspection would comply with the current standards of wind mitigation and could be reviewed by the underwriting department of the insurance carrier in order to make sure that the credits are accurate and have been proven through photographs.
No one can disagree that wind mitigation done three years ago was less accurate than what is done today. Everyone has learned as time has gone on. It’s understandable why an insurance carrier would want to do reinspections. Actually it’s admirable that an insurance company would care enough about their clients to pay for a service that qualifies their client for a discount.
When a policyholder receives a notice stating that their insurance rates are increasing their rightfully upset. If the increase is due to the fact that they were receiving unwarranted when mitigation credits it does not change the emotional state of the policyholder.
The intention of the insurance company was to take the most convenient route for the policyholder to receive an accurate premium. If policyholders had a better understanding of credits, reinspection programs would work perfectly. That is not the case in the real world. As an insurance carrier, in order to protect your image and satisfy your clients you will receive a much greater return on your investment by expiring the policyholder’s old wind mitigation form and providing a $100 credit to help offset the cost of getting a new wind mitigation inspection.
I would suggest providing a 180 day window for the policyholder to get a new wind mitigation inspection. If within this time period a new wind mitigation is performed, the underwriting department of the carrier can decide if the new report meets the requirements to prove the credits. If it does the mitigation credits are applied and everyone moves on.
What’s great about this is that it allows the insurance carrier to show what the policy would cost without any wind mitigation credits. If the if the policy premium increases by $200 but still is much less than what the policy would cost without any credits easier for the policyholder to understand they’re still getting a discount.
I have yet to talk to one insurance agent who has felt satisfied about a reinspection program. Most agents feel that the programs are making it very difficult to maintain the loyalty of their clients.
What insurance company would not want to fix the problem they have with inaccurate wind mitigation credits? All of them would, it is a huge problem for insurance companies who already operate on thin margins. By expiring the old wind mitigations the insurance carrier would be able to recoup 100% of the inaccurate credits with no cost.
What are your thoughts?