In my opinion, it is not only essential but also possible to reengineer homeowner’s insurance. My partners, Joel Silver and Drew Engler, and I wholeheartedly believe this. It is why we recently launched WOWS Insurance Services, specializing in fire zones and areas where insurance is difficult to place.
The Situation
Just in the state of California,11 million acres have burned, destroying nearly 50,000 structures, many of them being homes. As a result, homeowners face unprecedented challenges. Soaring homeowners’ insurance premiums and dropped coverage make it more expensive to maintain protection. According to Redfin, over half of Californians alone say they have been affected by rising premiums for property coverage or been dropped by their insurer in the last year. And the situation continues to decline.
To make things worse, a record number of homeowners are cutting back on their insurance coverage, increasing their deductible or in some cases, where they don’t have a mortgage that requires such insurance, deciding to take a significant chance and totally eliminating their coverage.
That’s a really bad choice.
A home is generally the greatest asset people will ever own. What I’ve learned after 25 years in the industry is that when a customer loses their home in a fire, they essentially lose their past, unless they have properly planned. And no matter how much insurance they have, it’s never enough.
I’ve learned to work harder to educate people about the importance of at least backing things up digitally. That means your photos, memorabilia, possessions, documents and more, as all of these may be totally destroyed in a fire. Having them digitally will allow for at least a visual memory to be preserved.
Think about it…if you are at your office and your home is totally destroyed, the only pair of shoes you’ll own are the ones you are wearing. It’s both poignant and painful. Powerful when thought of in that context. A valuable lesson indeed. And one you don’t understand until you’ve gone through it. Or watched others do so.
The Solution
We at WOWS Insurance Services have launched an innovative new product that provides homeowners insurance, including fire coverage, for high-end properties in California and is leading the way for the insurance industry to change. It’s based on the belief that proximity and spread of risk are more important than the fire score.
Because the fire risk landscape is constantly evolving, the industry needs to change with it. The changes in the fire insurance industry, and the challenges the insurance companies are facing, have consistently increased over the course of the last 10 years. These issues actually created the opportunity to change how homes are insured, to design and implement a new blueprint that, long term, will benefit everyone concerned. Insureds, homeowners, insurance companies, realtors, mortgage brokers, reinsurers… in short, everyone the industry is involved with.
WOWS Insurance Services’ mission is to change how the industry approaches fire insurance. We’ve created the blueprint for how the industry needs to proceed. It needs to evolve as today it is in dire straits. We believe our approach will allow the insurance industry to continue to do business in California.
Essentially, the method we use to bring customers in and solve their needs is the reason our purpose-driven strategy works. We provide brokers with an advantage in writing fire insurance, allowing them to stand out from their competition.
WOWS Insurance Services has an innovative new product that provides homeowners insurance, including fire coverage, for high-end properties in the state of California and is leading the way for the insurance industry to change. It’s based on the belief that proximity and spread of risk is more important than the fire score. We’ve also partnered with a technology company that provides access to big data and cutting-edge analytic solutions, including location intelligence.
With WOWS insurance, insureds get protection and ease skyrocketing homeowners insurance costs, saving up to six figures. And when it’s time to sell, this coverage is transferable, adding a premium touch to their listing, enhancing their property, and standing out to potential buyers. This is the first-ever policy to do this. It also adds stability to the real estate market, possibly avoiding the feared decline in both home sales and market value. Based upon the reaction of real estate professionals across California, this new program will not only maintain but also increase homeowner values…a true win/win for all concerned. Reinsurers are supporting the program, too.
Learn more about WOWS Insurance Services at https://wowsinsurance.com/.
