Easy after we had sold ourselves

Rough Notes, Jun 1999 by Eynon, C C

MY remarks in this short article will be confined to the solicitation and selling of Rent, Rental Value and Leasehold insurance to income property owners and prospects. Fire insurance, of course, is necessary to protect ones' investment in a business property, but to my mind Rent insurance is just as important. A typical interview will serve as an example.

"Good morning, Mr. Jones. I am delivering your Fire insurance policies on your Acme building. Knowing you do not carry Rent insurance on this building protecting the income, I would like to interest you in this form of coverage.

"Yes, I have heard of Rent insurance but do not know much about it. Just what is it and why should I carry it?"

"A Rent policy is the same as a Fire policy but carries a Rent form attached. This policy will pay you the rent you are now receiving from your building it a fire should render your building, or a part of it, untenantable due to a partial or total loss, for such length of time that would be reasonable to rebuild the building. Your income trom this properry would go on just the same as though no fire had taken place and your expenses and net profits would not suffer."

"I know, but this is a well-built building, has careful management, and our fire department is one of the best in the country, and if we did have a fire, the chances are it would be small and in thirty to forty-five days, at the most, could be repaired and the loss in rents would be very small."

"No one knows what the future holds, Mr. Jones, and the chances for a big fire are just as great as for an inconsequential one, such as you suggest. For instance, who would have thought the Stark building, a four-story, solid brick building, would have burned to the ground and become a total loss a few months ago? that happened to that building could just as easily happen to yours. As yet, we have no building erected that won't burn. Here is my point, Mr. Jones, you are now carrying adequate Fire insurance in anticipation of a bad fire, and if that happens, your property damage will be paid, but your income from the building will stop. Therefore, if you have a loss on the building you will just as certainly have a loss of income, so Rent insurance is just as important to you as the Fire insurance. The rate is lower than the Fire insurance and it is good business to protect the income as well as the property."

"Say, Eynon, if I carried all the forms of insurance you say I should, I'd be doing nothing else but paying insurance premiums and go broke."

Insurance Smallest Item on Statement

"When you take off your annual statement on your properties, you will find that the money paid out for insurance is about the smallest item on the sheet, and the one that means most to you, because it becomes a wonderful asset in case fire overtakes you and you cash it in and are repaid for your loss. You will find on your expense side that the items of taxes, interest, repairs and maintenance, light, water, salaries, etc., greatly exceed what your total insurance premiums are, and yet some people kick on the item that means protection."

"Guess you are right. Fix up the Rent policy and I'll send you a check."

Not Side-Lines but Head-Line

Most agencies only try to sell Fire insurance and overlook the so-called side-lines.