Know Coverage Questions When Working on Home Insurance Leads

Agents working on home insurance leads should be prepared to tell prospective customers exactly what a policy will and will not cover.

For example, recent natural disasters have driven home the point for many homeowners that floods and earthquakes are not covered under standard policies and require separate riders.

Homeowners may also find that damage rising from negligence, such as failure to repair leaks that result in mold, is not covered. However, things exempt from coverage under most policies can include a wide variety of contingencies.

"Unfortunately, many consumers make a lot of assumptions about what's covered under a standard homeowners policy. But you usually need additional riders for losses from events such as sewage backup, food spoilage from power outages, earthquakes, and wind damage," Oklahoma Insurance Commissioner Kim Holland told CBS News in a recent report.

Elsewhere, a report by WBBH-TV notes that intentional damage done by a home's resident is often not covered, offering the example of a teenager who causes damage after a heated argument. The website also notes that expensive luxury items tend to require additional coverage, among other things.

By staying on top of such issues, agents should be able to turn more home insurance leads into sales.