To Roofers: Insurance Agents Are Not Your Enemy

Insurance agents are not your enemy! As a contractor, you run across unreasonable claims departments. And It becomes easy to paint everyone on the carrier side with the same brush. But if you do, you are missing out on some of the strongest referrals you can get. 

I generated 80-percent of my business by referral. 46-percent of those referrals were from insurance agents. And I had an average supplement of almost $15,000!

Think about this. Insurance agents, knowing my process and results, still referred me to their clients. If the insurance company and their agents are the enemy, why would the agents do this?

Because agents need renewals. To get renewals, agents need loyal customers. And you can't get loyal customers without superior customer service. Good agents put their customers first.

I am writing this to help you build relationships with agents. But there are two things you must know before we start:

1. There are a million roofers out there, and they all want the agent's referrals. Differentiate yourself. Most agents view contractors as a resource. Someone they refer their clients to when their clients think they have damage. You need to show them you are more than that. You can be a resource, a referral source, and a strategic partner! 
2. Like customers, not all agents are ideal. Some agents don't place a high value on customer service. They may focus on their performance metrics or try to dictate your process. If an agent expects you not to supplement a claim, they are not the right fit. Remember, your ultimate responsibility is to deliver the best results to your customer.

Now that is out of the way, how do you build relationships with insurance agents?

Know What Motivates an Insurance Agent.

Commissions. Yes, agents care about their customers and want to help them through catastrophes. But they are still a business, and they need commissions to keep the doors open. You need to understand how agents get paid to position your value as a contractor.

An agent may receive a 10- to 15-percent commission off the yearly premium for a homeowners policy. A $3000 premium equals a $300 payout at 10-percent. Would you be a contractor if you only got paid $300 per roof? Of course not! Insurance agents wouldn't be agents either if all they made was $300.

But insurance agents also get paid off renewals. Generally, every time the policy renews, the agent makes another 10-percent commission. This residual income adds up. An agent not only makes commissions off new sales but also of the renewals of each year prior. The longer the agent is in business, the more commission they will earn.

To quickly build relationships with agents, show them you can help protect their renewals and close more deals.

Know What Demotivates an Insurance Agent.

Frivolous claims. Claims made that don't exceed the deductible. Dishonest contractors that inflate estimates! Every one of these scenarios puts an agent's customer in a bad spot. But they also have consequences for the agent. 

Carriers track the number and dollar amount of claims made against an agency. And carriers watch new policies more closely. Too many claims against new policies, and the carrier may accuse the agent of fraud. For independents, the carrier may drop them altogether.

An agent that knows you will give an honest assessment will send you referrals.

Know the Challenges Agents Face.

One of the biggest challenges agents face is getting past price. Most insureds view insurance as a commodity. Insurance industry advertising convinces them that price is the most critical factor. The carriers expect agents to overcome the price objection and sell value. But the customer doesn't understand coverage; they understand premium! It can make for a tough sell.

How can you help an agent overcome the price objection? You are uniquely positioned to have tons of coverage and real-world claims horror stories. Share these stories with agents and offer to be a reference. Consider creating content agents can share to showcase coverages instead of price.

But most importantly, set your agents up for success when you do refer them to your customers. Never lead with price. Always stress the value your agents bring to the table.

Team Up with Insurance Agents and Go After the Same Business.

A prospective client with an old roof can be a tough sell for agents. Older roofs increase premiums, and some carriers reduce coverage to ACV only. This can mean a lost opportunity for the agent. But it doesn't have to be. 

If the agent knows the roof is old, they can ask you to pull a hail report. If the hail report shows storm activity, they can refer you to the prospect. If you find damage, the customer can file a claim before switching carriers. A new roof can be the competitive edge an agent needs to close the deal. Everyone wins. The customer gets a new roof, you put the roof on, and the agent closes another policy!

Be Unselfish. Help Agents Close Deals You Are Not Involved In.

There will be times your agent has a policy sold but may need documentation for underwriting. For instance, their customer buys a new house. The sellers represented the roof to be two years old but did not provide any proof of replacement. To secure the quoted rate, underwriting wants proof. Be the roofer that will help even with no immediate benefit.

You may be able to prove the age of the roof without ever leaving your home. To do this, follow these steps:

• Pull a hail report to identify storm dates that may have prompted a roof replacement.
• See if the local building department keeps records of pulled permits online (I know, I know ... roofers pulling permits?! Another topic for another day.)
• Use Google Earth to look at historical imagery. See if there are notable differences in shingle color or type. Also, look for fixtures that were added or removed.
• Use Google Maps Streetview to look at historical imagery. Like Google Earth, look for changes in colors or shingle type. The images from Google Maps should be of higher quality. Look for freshly painted vents, changes in the kind of vents (did they go from plastic to metal?), algae in older photos but none in more recent images, etc.
• If you can prove the roof's approximate age, write a report with your findings and give it to your agent.

Hopefully, you can save time and resources by avoiding an on-site inspection. But, if not, lace up your boots, start up your truck, and inspect the roof. Agents will remember what you did to help them out.

Work Your Way Into the Rotation

Face it. Agents know tons of roofers. How can you work your way into the rotation? Think about your competitive advantage. What makes you unique? Are you skilled at a specific type of roof system? Can you handle remodels and other non-roofing projects? What scenarios are you best suited for? Communicate your ideal scenario to the agent. Whenever the agent runs into that scenario, it will trigger them to refer you. They won't feel guilty for not referring to their go-to roofer if they think you are best suited for the job.

Uncover Referrals for Your Agents

The more agents that send you referrals, the more challenging it gets to send referrals in kind. This is because there is a cardinal rule you should never violate. Never try to flip a referral from one agent to another agent. In fact, always speak highly of the agent to their customers. But, when you have a customer who was not referred to you by an agent, you should uncover their insurance needs.

Were they happy with how their adjuster handled their claim? Was their current agent helpful when they asked for help? Did the insurance company delay or underpay their claim? Do they know the best time to shop for insurance is when you have a new roof? Do they know they can switch policies any time and be refunded their unearned premiums?

Does your customer know you have relationships with the best agents in town?

Uncover these needs through your conversations with your customers. Refer them to the agent you think can best serve their needs.

Teach Agents Your Process

Agents need to know what their customers can expect when they hire you. But more importantly, you need the agent to know what to expect when they refer you. Detailing your process to agents will help avoid miscommunication. 

Does your agent know how you estimate? Do they know you collect deductibles? Do they know you are responsible to your customer even when it might not be in the agent's best interest? Teaching agents your process will decrease the chance of miscommunication. It also has the added benefit of eliminating non-ideal agents from your network.

Remember, referrals from agents are some of the strongest referrals you can get. Policyholders that call their agent for help trust their agent. When their agent refers you, you assume that trust. And when your customer trusts you, dealing with the insurance adjuster is easier. Everyone wins. Don't abuse that trust!