Thousands of California families and individuals have lost not only their homes, but their entire neighborhoods in the Eaton and Palisades fires.
While claims adjusters and insurance companies sort through a projected $20B to $45B in losses, it’s independent insurance agents who serve as the human face of our industry to those who are facing some of the worst days of their lives.
“As you’re calling people, it’s heartbreaking,” says Dana Dattola, Agency Principal at Weaver & Associates in Arcadia, Calif.
“I know that I can’t fix everything, but at least we can alleviate clients’ financial stress and help them understand their coverage,” she adds. “We do our best to be sympathetic, but also to give them some hope.”
Once the immediate threat passed, Dattola’s agency started reaching out to every client who could have been affected. She recommends sending each claimant their entire policy and explaining to them in detail – and patience is key here – what’s covered. Bear in mind that very few insureds will know offhand the specifics of their homeowners’ policy.
For example, what happens if a claimant decides not to rebuild, following a total loss? They’ll need to know how their policy will respond.
To expedite this process, her agency’s staff keeps a “cheat sheet” of what’s covered under each policy level, to consistently explain the details to claimants.
Dattola offers the following tips for advising policyholders:
- Clarify that they should file claims directly with their carrier, rather than through your agent. Supply them with the contact information to do so.
- Explain what additional living expenses are and what costs are covered, including those incurred for evacuation and temporary housing.
- Advise that that they open a credit card and use it to pay all living expenses, to keep track of every dollar spent.
- Suggest that they open a P.O. box to aid in receiving checks from their carrier, and ask that they update that mailing address with their insurer.
Keep the Lines Open
Mark Abernathy, Chief Operating Officer at Abernathy Insurance in Arcadia, Calif., advises claimants to save their policy numbers, the company claims hotline, and the agent’s phone number in their phone contacts.
All the while, he adds, “Recognize the emotional toll from their loss of not just their home, personal property, and their community, but their memories.”
Frequent communication with clients, especially those who have suffered a major or total loss of their home, is critical, says Frank Glaser, Senior Vice President at Kulchin Ross Insurance Services in Tarzana, Calif.: “This connection shows that we are more than just someone that has sold an insurance policy but truly care about our client’s well-being. Our compassion and concern are remembered by clients for a long time.”
Glaser encourages clients to call him at any time if they have questions navigating through the claims process. He will often interact with the assigned adjuster to make sure that his client’s claim is moving forward as quickly as possible.
“Prove that you care,” says Abernathy. “Reiterate that as agents, we do not settle or pay claims on our companies’ behalf, but we may be used whenever needed as a resource or sounding board. Check in with them repeatedly.”
Protecting Your Staff from Burnout
As claims continue to mount, emotional burnout is a concern for many agencies – and the principals are responsible for spearheading efforts to protect the emotional well-being of their staff.
For Weaver and Associates, the losses were deeply personal. “Seven of our staff were evacuated from our homes,” says Dattola. “We all came in to work.”
As principal, she has the opportunity to talk to other principals, and feels less isolated; Dattola is mindful of the fact that her staff doesn’t have the same luxury. More empathetic employees can struggle with the emotional toll.
“It’s emotionally draining,” she says. “We’re all-hands-on-deck, and we’re inundated with calls. I just try to check in with everyone as much as I can, give them opportunities to talk about it.”
Erik Holland, President of Fidelity Insurance in Berkeley, follows the same principle he has embraced since the pandemic: Regularly remind your staff that they’re supported, empower them to come to you if they have difficulty with a client, and check in on them to ensure their mental health isn’t suffering.
“They often put enough pressure on themselves; don’t put pressure on them in the face of trouble,” says Holland. “You need to help them manage unrealistic expectations of themselves. They need to separate their work from themselves, emotionally and personally.
“Your staff are only human,” he adds. “They can’t solve every issue – only what’s reasonably possible. Be thankful and take pride in the cases where you succeed.”
