PRODUCT: Progressive Home Advantage
COMPANY: Progressive and American Strategic Insurance (ASI)
BEST RATING: Progressive: A+ (Superior). ASI: A (Excellent).
AVAILABILITY: Coverage is available through independent agents on a limited basis in select states as the product becomes available.
FOCUS: Progressive enhances and expands the availability of its homeowners offering with a new product, Progressive Home Advantage, made possible by the company’s ongoing acquisition of American Strategic Insurance. The company is rolling out the product in stages and plans to be nationwide by the end of 2017.
The acquisition and product enhancements are part of Progressive’s efforts to revise its target market. “We are targeting the financially responsible preferred customer who has assets to protect and therefore has more complex insurance needs,” says Ben Schaum, Progressive Home Advantage product manager. The revised target customer would typically require greater liability limits than Progressive has previously offered, as well as umbrella products and coverage for home, multiple cars and recreational products.
“The current and future product enhancements, along with our [intent to provide] unparalleled claims service are designed to capture and retain this customer,” Schaum says.
To attract independent agents to offer Progressive Home Advantage, Progressive and ASI have developed a partnering program, Platinum, to give agents higher commissions, increased sales support and bonuses for growth. “Agents can earn more on bundled business from day one and then earn more benefits as they build a bundled book over time,” Schaum explains.
UNDERWRITING: Through ASI, Progressive offers HO3, HO6 and HO4 homeowners products, using ISO forms with state-specific special provisions and some proprietary endorsements.
“We underwrite to ensure high-quality construction and well-maintained homes,” Schaum says, noting that the product offers flexibility through specialized endorsement packages and the base product is designed for affordability—it does not require customers to purchase coverages they don't want or need. “This allows for greater pricing segmentation while offering the appropriate coverage to our preferred market.”
Coverage A limits for homeowners range from $100,000 to $6 million. Discounts may apply for security systems and fire alarms. Coverage mandates handrails on stairways and railings around raised patios and balconies and that homes with pools have limited access via a fence and no diving board.
Coverage B is for structures unattached to the dwelling. It has different coverage levels which allow customers to purchase coverage that matches the other structures on their property. Liability limits for homeowners range from $100,000 to $500,000. Discounts may apply for risk-mitigating construction techniques in hurricane-prone areas. Some specialty construction methods are limited.
MINIMUM PREMIUM: None.
TARGET: Homeowners looking to bundle their auto and home insurance with one carrier.
COVERAGE TERRITORY: AL, AZ, CO, CT, DC, DE, FL, GA, IA, IL, IN, LA, MA, MD, MN, MS, NC, NJ, NM, NV, OH, OR, PA, SC, TN, TX, UT, VA, WA and WI. Scheduled for later this year: CA, MI and MO.
CONTACT: Sara Mosher, Progressive Home Advantage product specialist; The Progressive Corporation, 6300 Wilson Mills Road, Mayfield Village, OH 44143; 440-395-6509.
Ronimarie Acord is an IA contributor.
