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Home Insurance Offerings: Product Marketing vs Product Codes

Learn about common product codes for homeowners insurance and how they are marketed. | WaterStreet Company

Insurers stand to better connect with today’s customers by reflecting what they’re looking for in clear terms.

While the codes insurers use to determine coverage is standardized, the ways of marketing these coverages can be very different. Consumers recognize the marketing language shared between carriers and use this information to compare coverage. Highlighting the perils covered and who the policies apply to, whether renters, landlords or single family homeowners, can go a long way with cutting through the confusion and standing out against competitors.

WaterStreet Company provides P&C Insurance Solutions for carriers and MGAs to manage the full policy lifecycle.

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Product Marketing vs Product Codes

Homeowners insurance is offered through a variety of products to meet the different needs of the insured.

It’s important to focus on the audience of each product when considering how they are marketed. These audiences typically include: Single family homeowners, renters, condominium owners, owners of old or historically significant homes, and landlords.

Single Family Home Insurance

  • HO1 – A named peril policy covering 10 commonly named perils.
  • HO2 – A named peril policy covering the 16 commonly named perils as well as personal property and personal liability coverage.
  • HO3 – An open perils policy covering the home and a named perils policy covering personal property.

Product marketing for these standard offerings should highlight the perils covered, such as advantages when it comes to fire coverage or coverage from storms. Particularly with HO3, an open perils offering, carriers can aim to promote this product for those concerned with earthquakes and flooding. Especially in 2020, many homeowners have experienced extreme weather and have these perils top of mind when comparing coverages.

Costs differences should also be highlighted clearly to the policyholder for their decision on which perils they require coverage from. Third-party integrations through WaterStreet Company can help underwriters weigh the risks of offering certain policies to the insured with location data and historical weather data.

Renter’s & Condo Insurance

  • HO4 – A renter’s insurance policy covering personal property against named perils as well as personal liability coverage.
  • HO6 – Condominium insurance that covers the inside of the unit as well as personal liability.

A common question when it comes to renter’s insurance is whether or not the personal liability coverage applies to pets, and if restrictions for dog breeds are included. Carriers who offer this product without pet restrictions should highlight this as a main benefit.

For HO6 coverage, be sure to highlight this policy does not typically cover damage to the building or flood damage, depending on the carrier. Additional coverage for flooding and other exclusions could be upsold if the condominium unit is the bottom floor, for example.

Modified Homeowners Insurance

  • HO8 – Homeowners insurance for older properties with high replacement costs.

Modified homeowners insurance is perfect for homes with historical value and can be marketed in locations with older properties. Consider using third party integrations to help locate the best areas to market this product around national landmarks.

Be sure to ask the policyholder if they are concerned about damage from perils as HO8 typically includes named-perils coverage. There may be opportunity to add named perils onto this coverage or upsell to a similar coverage with more protection from perils. Falling objects are not typically covered under HO8, however older properties may also contain older trees, leading to a risk for this hazard.

Landlord Homeowners Insurance

  • DP3 – Insurance which covers single family home rentals or apartments up to four units.

The standard DP3 policy is ideal for landlords and also covers detached buildings, such as garages, from fire. It can be extended to include appliances in the home as well, a great benefit to highlight in place of home warranties if the policy offered by the carrier is comparable. This policy is often compared to HO3, and if the landlord lives on the property as well, the HO3 policy is better suited.

WaterStreet Company & Homeowners Insurance

Built with a robust and flexible API, our solution gives carriers the power to fully weigh the risks when choosing to insure. Gain access to any number of third-party solutions for bringing all the data needed into your system, better informing underwriters and opening the door to creative solutions when marketing your products.

Document Management is at the center of our Policy Administration Software, keeping your administrators, underwriters, and all staff involved within one unified system.

Talk to us today about our Business Process Outsourcing services for gaining even greater efficiencies through your back office, customer service and mailroom needs.

Reach out to WaterStreet Company today to request a consultation and demo.