William Stephenson, Account Executive, MetLife Auto & Home®
Now Trending:
Renting a primary residence yet buying a vacation home may be the reverse in traditional home ownership; however, it’s a growing trend among millennial (23-38 years old) buyers.
As housing values continue to rise, particularly in major cities, home ownership is a challenge for millennials, who, on average, need to save 6.4 years’ worth of their total annual pay to afford a down payment on a home1. Affordable vacation homes are an alternative way to build equity and enter home ownership.
The average age of a vacation home buyer has dropped to 43 from 61 years old over a decade ago, according to the National Association of Realtors (NAR), which started collecting data in 2003 for its annual Investment and Vacation Home Buyers Survey2. Millennial home buyers are purchasing vacation homes as retreats from their daily lives, as well as investment properties. Vacation rental site, Vrbo’s data notes more than half of Vrbo homeowners cover 75% or more of their mortgages through renting them out until they want to use the property themselves3.
Offering Tailored Insurance Policies
So, when your millennial client calls to discuss his/her policy needs for his/her rented residence and new vacation property as a rental dwelling, are you offering him/her policies tailored to meet their needs?
Smart Choice® agents, can offer MetLife Auto & Home® GrandProtect® policies, packaged auto and home insurance designed to fit your clients’ way of life.
As a Smart Choice agency, you know your clients and their personal situations, enabling you to craft tailored policies for their needs. GrandProtect provides more coverage than many other insurance options and automatically includes a number of features designed to safeguard your clients’ most valuable possessions, including autos, homes – primary residences, vacation homes, condos, rented, AND rental properties.
Additional features include:
- Blanket Property Limit – this combines policy limits for the dwelling, private structures, and personal property coverage, so your client has one total limit to use when needed.
- Guaranteed Rebuild – this pays the full cost to repair or replace your client’s home without deduction for depreciation (less the deductible), even if that cost exceeded the amount listed in the policy.
- New Vehicle Replacement – payment for a new vehicle of the same make, size, class, and body type, if the insured vehicle were a total loss. Deductible applies.
With insight into growing trends in the homeowners market, Smart Choice® agents can ask the right questions to understand their clients’ situations and ensure they have the right coverage to meet their specific needs. For more information about MetLife Auto & Home’s GrandProtect, contact your Smart Choice® State Director or Territory Manager.
1 CNBC.com, “Millennials may be facing unaffordable housing, but they’re paying less in rent than other generations”https://www.cnbc.com/2019/09/26/buying-a-house-is-pricier-for-millennials-but-renting-is-cheaper.html
2 American Apartment Owners Association, “Millennials Are Renting in Cities But Buying Country Houses” https://www.american-apartment-owners-association.org/property-management/millennials-renting-cities-buying-country-houses/
3 TheMortgageReports.com, “How to find cheap vacation homes and low vacation home mortgage rates” https://themortgagereports.com/57048/how-to-find-cheap-vacation-homes-and-low-vacation-home-mortgage-rates
Personal Lines: Identifying Unique Touchpoints for Every Policy
As a bridge between carrier and client, independent agents are in a unique position to provide mutually beneficial solutions and services to both parties, which will elevate your worth and your business. For more on how agents can improve relationships with clients and grow their business as independent agents, check out the 2020 Issue 1 of Smart Choice Magazine.