Viewings, valuations and miles on the clock
Estate agency is busy and sociable. A typical week mixes valuations, accompanied viewings, negotiating offers and chasing chains through to completion. Saturdays are often the busiest day. You spend a lot of time driving between properties and even more on the phone to buyers, sellers and solicitors.
The risks come from time on the road, the pressure of monthly targets and the knee and back problems that affect anyone climbing stairs in empty houses all day. Market slowdowns can hit both income and mood. Income protection pays if illness or injury stops you working, whatever the cause.
Commission and the gap in sick pay
Many agents earn a modest basic salary topped up with commission on sales or lets agreed. If you are ill, your employer may pay sick pay on the basic only, or just statutory sick pay. The commission that pays your mortgage stops at once.
Insurers usually include regular commission when working out your maximum benefit. They may ask for P60s or payslips over several years to see an average. If your earnings jumped recently after a promotion to branch manager, a broker can help you find an insurer that takes a fair view of the latest figures.
- Check whether sick pay covers basic salary only
- Gather payslips or P60s showing commission
- Insure enough to cover your essential outgoings
Owning the branch or a franchise
If you own your agency or run a franchise, you probably have no sick pay and the business leans heavily on your relationships with local vendors. Personal income protection covers your own drawings. Key person cover can help the business through a long absence, and shareholder protection can help co-owners buy your share.
Self-employed agents are usually assessed on profit from their accounts, averaged over a few years. A shorter deferred period may suit if the business has little cash in reserve.
How an insurer rates estate agency
Insurers group occupations by risk, and that group affects the price and the definition used at claim. Estate agents usually sit in a moderate or lower-risk group because the work is mainly office and car based.
Many insurers offer own occupation cover for agents, so a claim is based on whether you can do your job, including viewings and valuations. Check the wording, because some cheaper policies use a broader test.
Life insurance for agents and how Hi Tomorrow helps
If your family relies on your earnings, life insurance can repay the mortgage or provide an income. Death in service, if your employer offers it, may be based on basic salary only and leave commission out of the sum.
We help estate agents understand how commission affects cover, compare policies from the insurers on our panel and set up the application with the right earnings evidence.