Home
Warranty
The PIIAI
Home Warranty Program
Back to Top
PIIAI officially endorsed Home Warranty of America, LLC
(HWA) in August of 2000. HWA has customized a program for PIIAI members
that is simple, and a natural cross selling extension to your personal
lines business platform.
When an agent's customer purchases an HWA home warranty
contract, the agent is compensated $50 for each new home warranty, and
$40 for each renewal on the home warranty. HWA provides marketing material
to member agents at no cost. Now available are 8.5 x 11 full brochures
(includes sample contract), brochure holders, 3.5 x 8.5 bi-fold inserts,
brochures and inserts in a PDF format, and a web link to your home page.
HWA's goal is to produce and provide marketing material to suit your
marketing platforms. Additionally, HWA is providing brief breakfast
and lunch on-site warranty program training to members at their convenience.
All you need to do is contact us to obtain the marketing
material and then begin offering the product. Please e-mail David
Sobel or call him at (888) 492-7359. For more information,
you can also visit HWA's
website.
Cross
Selling to Your Personal Lines Client Base
Back to Top
The most accomplished sales people attribute their success
to the development of strong long lasting customer relationships. Cross
selling multiple products through these relationships is essential to
an efficient business and revenue growth model. The PIIAI marketing
team continues to provide its member agents with the opportunity to
offer quality conventional and niche products to significantly increase
their income potential.
Utilizing a lead product approach to gain access to a
long-term customer, a member agent can create an entry point for supplementary
product sales. An excellent example of this distribution model is the
sale of consumer critical homeowner's insurance and a follow up offering
of a home warranty contract. The lead product creates access, establishes
a relationship, and facilitates a low-pressure sale of a related renewable
product.
What
is the Difference Between Home Owner's Insurance and a Home Warranty?
Back to Top
Homeowner's insurance protects the consumer from accidental
and catastrophic losses, while the home warranty contract fills the
gap of protecting the consumer's major mechanical systems and appliances
from normal wear and tear. For example, if a dishwasher pump breaks
and causes water damage to the kitchen floor, a customer might be eligible
to file a claim with their homeowner's insurance policy to assist with
addressing the consequential floor damages, but not for the repair/replacement
of the dishwasher. The home warranty contract would provide for the
repair or replacement of the dishwasher, but not the consequential damages
caused to the floor. The typical home warranty contract provides such
protection on the heating, cooling, plumbing, electrical and major kitchen
appliances all in one contract.
Home
Warranties Provide Your Customer with Protection and a Value Added Service
Back to Top
When a problem occurs with a covered item, regardless
of age or cost, HWA's home warranty will repair or replace the item
using brand new, top quality parts and appliances. Service is only a
toll-free call away, 24 hours per day, 365 days per year. HWA's best
practices contractor screening process assures the utilization of only
top quality, licensed repair contractors. HWA only utilizes those contractors
who sign our best practices agreement. HWA utilizes reliable replacement
distributors such as ABT and Best Buy for all replacements. To demonstrate
its confidence in its business, HWA offers a 30-day money back guarantee
on every home warranty.
Do
your Customers Really Need a Home Warranty?
Back to Top
Every homeowner can benefit from a home warranty. Each
homeowner's needs vary depending upon the age of their systems and appliances
as well as their frequency of usage. According to information obtained
from The Association of Home Appliance Manufacturers, normal wear and
tear is affected more by usage than by age. Since it is difficult to
measure the actual usage of each mechanical system and appliance in
each home, the industry tends to rely on age to approximate average
repair needs and life expectancies.
Consumer Reports surveys reveal that approximately 15%
of the surveyed new built-in kitchen appliances (dishwashers, ovens,
etc.) required repair or replacement before they reached just five years
of age. The Association of Home Appliance Manufacturers' survey reveal
that it is more cost effective to replace appliances at age eight and
higher than to incur the cost to make the necessary repairs.
According to information obtained from our network of
approximately 1000 heating, cooling, and appliance repair vendors, appliances
begin requiring repairs between years five and seven, and replacement
between years seven and ten. The heating and cooling systems (if properly
maintained) begin requiring repairs between years seven and ten, and
usually require replacement between years twelve and fifteen.
Thus, any client owning a home which is seven years of
age or older, is an excellent candidate for a home warranty. Their need
for a home warranty increases with the greater number of older systems
and appliances within the home.
Targeting
Your Cross Sell Opportunities with Strategic Selling Points
Back to Top
Is your client involved in a real estate transaction?
If your client is selling their home (especially a home
that is 7 years of age or older), advise them of the following:
· HWA provides FREE coverage to home sellers during
the listing period.
· Payment is not required until closing.
· Coverage is transferred to the buyer for one full year.
· The warranty minimizes downward price negotiation.
· The warranty reduces potential post sale disputes.
If your client is buying a home, they are likely upgrading
and thus sinking a great deal of their budget into a down payment. Unless
they are purchasing a new home, they will acquire a residence with many
older mechanical systems and appliances. The home warranty will protect
them against the following:
· Potential $2,500 furnace replacements.
· Potential $1,500 air conditioner replacements.
· Potential $500 to $1,000 water heater and kitchen appliance
replacements.
· Peace of mind (no scouring of the yellow pages for unfamiliar
repair companies).
Is your
client residing in a town home?
Back to Top
Town home residents are accustomed to having someone else
take care of their superstructure and exterior repair needs. Most are
not aware that they can obtain the similar protection for their major
mechanical systems and appliances. Advise them of the following simple
facts:
· HWA's warranty costs approx. 1/12th of average
annual association fee.
· The warranty is available without being involved in a real
estate transaction.
· There are no significant age restrictions
· There is no inspection required.
