It pays to have the home insurance conversation

I know that that home insurance can sometimes be at the bottom of the priority list after the mortgage and protection conversations and often, may not be discussed at all. But I’m passionate about helping to change that. Home insurance should be a fundamental part of the mortgage advice process, so I want to help advisers not only understand why this is, but share some tips on how they can successfully have the conversation. 

So, why should home insurance be higher up the priority list?

For me, there’re three key reasons:

1. Most importantly, you have a duty of care to do the right thing for your clients. You’re helping them secure their home, so why wouldn’t you also help them to protect it? With the cost of living still hitting people hard, as well as the more frequent extreme weather events we’ve been seeing, getting into the GI conversation is more important than ever. Just recently the ABI reported that subsidence-related insurance claims totalled £153 million in the first half of 2025, as households across the UK felt the impact of an exceptionally warm and sunny spring. Over the first six months of the year, insurers supported almost 9,000 households in recovering from subsidence damage, with the average payout per claim standing at £17,264. It’s about making sure your clients are ready for life’s curveballs at both ends of the spectrum – the bigger events and the things that can happen every day. It can also help you fulfil your Consumer Duty obligations – making sure your clients are put in an informed position.

2. GI can help you future-proof your business. You may assume that you won’t earn much from selling a home insurance policy, but with commission also paid on renewals, it allows you to build a sustainable income stream for your business. At LV= GI, we’ve developed some commission calculator tools to help you build a clearer picture of your earning potential. We probably all wish there was an infinite ‘pot of leads’ available but the reality is, it’s about maximising the opportunity from the clients you have in front of you and not just thinking about the mortgage sale but the ancillary products that go alongside it.

3. As home insurance is an annual contract, GI gives you the opportunity to stay in touch with your mortgage and protection clients, so they’re much more likely to return to you when needing a product transfer or a remortgage later down the line. Staying in contact with your clients regularly also means they’re much more likely to recommend your services. It's a way of helping you ringfence your client base and reinforce the value of your advice.

Top tips for having the home insurance conversation

I get asked a lot when the best time is to introduce home insurance into the mortgage advice process. While it is a product that fits nicely with multiple stages of the journey, I’d say that introducing it in your very first conversation is the best place to start. It means that it can be a key consideration from the start when looking at affordability and isn’t then a shock, when coming up to mortgage completion. LV= GI’s quotes are valid for 180 days too which also makes it easy to introduce it early. It also reduces the risk of the client going off to do it themselves on a comparison site. Advisers are best placed to help make sure their client has the cover they need for their own personal circumstances and lifestyle.

This brings me on to my next tip. I believe it’s important to get to know your client so that you can tailor the conversation and then the cover to them. Throughout the lifetime of a mortgage your client's circumstances are likely to change. What mattered when they first took out their mortgage could be different to what matters now. For instance, first-time buyers might not have kids, but they value their gadgets and furry friends. Looking ahead a few years, and life might look very different. They may now be engaged or married with a baby. They could be working from home full time or have kids who have headed off to uni. With annual home insurance renewals, advisers have the perfect opportunity to check in, update cover, and ensure everything aligns with the client's evolving needs.

Lastly, 'Do sweat the small stuff’. I’ve mentioned previously about how home insurance can help prepare your clients for the big and the small events that happen. We know that it’s vital to be covered for major incidents like a flood, a fire or subsidence, but in general, they’re not as frequent as less dramatic events that happen every day like a lost engagement ring, a spilt glass of wine, a broken down boiler or accidentally damaging your TV. In fact, in 2024 some of our most common claims were for home emergencies – 27% of claims and an average cost of £218, and accidental damage – 24% of claims and an average cost of £638. By explaining these details, advisers can bring the product to life, make it more relatable and help their client understand the value. I appreciate that home insurance can be challenging to sell, but it's crucial for financial security. In the current economic climate, clients may not have enough spare cash to cover even the smaller unexpected home repairs or replacements. You're best placed to highlight how the product protects against unforeseen expenses, ensuring clients are prepared for various situations.