Extend Your Professional Network And Enhance Your Client Experience

We may be as bold to say that the long-term success of your mortgage broking career will depend on the strength of your professional relationships. Your client comes to you for one piece of their home-lending puzzle. So imagine being able to say to your client with clarity and confidence “I’m also going to introduce you to an insurance broker, who will help you as much as we do” and how that will enhance their client experience.

Mortgage brokers / loan writers and insurance brokers are very much part of the same solution for clients. It makes sense that you find and work together with a professional and expert insurance broker to enhance your client’s experience with you and help to protect your client’s assets.

In this article we’ll break down the role of an insurance broker in your client’s home-buying process, what a professional insurance broker can do for your client in the long term and why it makes sense for a mortgage broker to cultivate a strong and lasting relationship with an exceptional insurance broker.

At what stage would an insurance broker become involved with a mortgage broker in their client experience?

Cory Jellicoe – a local expert in insurance says; “the role of a mortgage broker and an insurance broker are very similar. They both have access to a panel of lenders/insurers and their job is to find the best product/policy that suits the client’s specific needs. A part of the loan process for the mortgage broker once finance is approved is to book a settlement date – that generally happens once the Bank receives evidence of the client obtaining insurance cover on the property (otherwise known as a Certificate of Insurance)”.

In QLD the REIQ rules are slightly different, in where once the client signs a purchase contract, they have until 5 pm the next business day to arrange cover as it becomes their risk. This is where a great real estate agent would direct them to an insurance broker, however, it’s kind of left to the buyer to figure out themselves.

So for the mortgage broker, having an insurance broker relationship established means they have that insurance document upfront and ready which saves both the broker and the client a lot of time and stress.

Once the bank is satisfied, the loan settlement can proceed and the client is one step closer to moving into their new home.

What are the typical things an insurance broker can assist with?

An insurance broker can help you from start to finish of your insurance experience. An insurance broker becomes your first call if you ever need to make a claim.

1. At the beginning of the relationship, the role of an insurance broker is to collect all the property information and shop it to the market to find the best policy for the client’s situation.
   Finding the right policy for the client is not necessarily price-driven, but more about what protection they will require for their specific property.An insurance broker will help the client in thinking ahead about possible scenarios and protecting them against the risk of that scenario happening. They do this by adding wording, clauses and conditions to a policy (that may not be available if a client organises their own insurance with an online provider).For instance, an insurance broker will help in calculating the rebuild cost in the event of a total loss – with access to online calculators that help determine an adequate rebuild cost factoring in demolition, removal of debris and professional fees such as architecture.
2. Insurance Brokers would generally only use insurers that provide flood cover, and the policy you obtain via a broker will have stronger policy wording benefits as opposed to going to a direct insurer. Understanding and reading the policy wordings can be overwhelming for any client, so a broker’s job is to explain the benefits of a policy and answer any questions the client may have.
3. As the relationship continues, and the client needs to make a claim, they contact the insurance broker directly – the broker represents the client and not the insurer. This is a huge advantage for a client, as the broker takes control and lodges the claim, follows up on the claim and fights for the best claim result.
4. As the relationship between client and broker evolves you could see different policies taken out, upgraded and amended based on the client’s changing situations.

Like any good mortgage broker, any good insurance broker will have a client for life mentality.

Why is it important to think about insurance before a loan is written?

For the mortgage broker, they should think about factoring in the cost of insurance, into the client’s servicing calculator.

The client’s dream riverfront home may be within their budget, but it could also have an insurance policy premium costing $10,000 a year – which they haven’t factored in.

So an insurance broker can help identify very early on, what kind of premium they are looking at before proceeding any further. But by the time the client has reached out to a mortgage broker for finance help, they usually have already decided on what house they are purchasing.

“Sometimes I feel that the perfect scenario would be a real estate agent, a mortgage broker and an insurance broker all working hand-in-hand as a team. For the client, having an insurance broker contact means they can get a property quoted and a policy bound almost immediately. No wait times on a call centre queue, no dealing with multiple call centre consultants, no online shopping and understanding quoting tools and complicated insurance jargon and policy wordings. An insurance broker takes care of all of it.” – Cory Jellicoe

How To Extend Your Services As A Mortgage Broker And Offer Clients Professional Recommendations

Buying a home actually takes a lot of [woman] or manpower from a handful of dedicated professionals.

Firstly, a client needs a mortgage broker to help get pre-approval to start shopping for a property. Then they need a real estate or buyers agent to assist with purchasing their dream home. They need a conveyancer to oversee the contracts. They need an insurance broker to assist with protecting the asset. They also need a building and pest inspector and maybe a pool inspector. They also need to consider consulting with a financial advisor to help cover the home loan in the event of an accident or death.

Some established real estate groups do this really well and call it their ‘concierge team’ which creates an amazing customer service experience.

If you are a solo mortgage broker, or part of a mortgage broking business you can do this also. Start with a plan to extend your professional network and make consistent steps to make it happen.

• Look up your local area’s professional networking opportunities and see what groups are available to join.
• Spend some time connecting with local professionals on LinkedIn.
• Head to social media and search local business hashtags and find local businesses that you can follow and support first, see what kind of vibe they have and if they gel with your company’s morals. Reach out and offer to buy them a coffee and connect.
• When you work with an excellent professional as part of a client’s process, whether it be a mortgage broker, real estate agent, conveyancer or accountant make a point to touch base and keep in touch.

Why Take The Time To Hone Your Professional Network?

The number one goal is to make the client’s experience as seamless and painless as possible. Buying a home, and all the contracts, stress and decisions that come along with that can be overwhelming for some clients, especially if it’s their first foray into the real estate market.

By holding their hand and leading them confidently through the process, you will earn a client for life, a raving fan and potentially, an excellent referrer.

Having your network of professionals on standby to introduce to your client at the right time, will separate you from the average mortgage broker. The conversation turns from “they got me a loan” to “they helped me immensely”.

Author’s note: A huge shout out to Cory Jellicoe – a local expert in insurance who has 20 years’ experience in the banking and insurance sector, for helping supply information for this article!