Energy consumers want engagement and for utilities to provide solutions. As the industry goes through a rebranding period, many energy providers are looking to utilize their own expertise and resources to expand their offerings in synergistic ways.
Position Yourself as a Trusted Partner
Home energy analysis and energy efficient rebates programs are great ways to position your utility as a trusted partner, but they lack human touch and nothing makes them stand out from what every other energy provider offers. This is why utilities are turning to affinity partnerships to expand their service offerings.
You can differentiate yourself by offering education about electrical safety and energy efficiency – something of which 88 percent of homeowners approve – while simultaneously offering an optional emergency home repair plan to protect them from economic shock, or a large, unexpected expense.
Many Homeowners Are Unprepared
More than one-third of Americans have $500 or less in savings in the case of an economic shock, and that increases to 54 percent of those who have a total annual income of $50,000. A Charles Schwab study showed 60 percent of American live paycheck to paycheck, and The Pew Trust found 60 percent had an economic shock in the previous twelve months.
The Biannual State of the Home Survey, conducted by The Harris Poll, reports the financial impact of home repairs, the state of the American home and researches home ownership trends. In the fall edition, the survey found more than one-third of homeowners would prefer a deductible-free emergency home repair plan like HomeServe’s offerings. The number was double that of those homeowners who would prefer to pay a rider on their home insurance offering a deductible. In addition, 69 percent of homeowners would prefer their local utility to offer an optional emergency home repair plan from a third party.
Homeowners Are Worried About HVAC
In addition, the HomeServe Biannual State of the Home Fall 2019 survey shows 50 percent of homeowners had an economic shock within the past 12 months. HVAC systems accounted for the most needed repairs, about one-in-five, and nearly half of homeowners are worried about the state of their HVAC system. Many homeowners are shocked by the cost of HVAC repairs, despite the size and complexity of most systems and safety requirements.
In the past year, HomeServe has sought to address our customers’ concerns about HVAC breakdowns by purchase HVAC repair companies in Washington, D.C.; Cleveland, Ohio; and Grand Prairie, Texas. These hubs will enable us to better serve our – and our partners’ – HVAC consumers.
Educating Consumers is Key
Education about improving energy efficiency and safety is key, but HomeServe also offers education about service connection responsibilities. In a previous State of the Home survey, more than 40 percent of homeowners surveyed didn’t know they were responsible for maintaining their service connections. A total of 18 percent were unsure who was responsible, while another 11 percent thought their homeowner’s insurance would cover the repair expense and 13 percent believed the utility was responsible.
If homeowners don’t know who is responsible for service connection maintenance, they will likely contact the utility if there is an issue. Then you will have the unenviable task of letting them know they are on the hook for thousands of dollars in an emergency home repair they may not be able to afford.
To learn how you can educate homeowners about their responsibilities and help them avoid economic shock, contact us.