If you need to purchase home insurance on your home, there are different channels through which you can go through. It could be through insurance companies, representatives of an insurance company, independent insurance agents representing different companies, or through a home insurance broker.

Understanding a home insurance broker

A home insurance broker is a person or company that acts like a middle man between an intending policy buyer and home insurance companies. Unlike an insurance company representative whose loyalty and offers are for a particular company, a home insurance broker offers loyalty to different companies.

They and independent insurance agents are more similar.

insurance broker vs independent insurance agent

Although both are similar in the sense that they work with different companies, the difference is that the independent agent acts as a representative of the insurance provider while the insurance broker acts as a representative of the intending policy buyer (customer). As such, an intending policy buyer can purchase a policy from an independent insurance agent whereas, an insurance broker links the policy buyer to the insurance companies.

also read: Home insurance exposé

Home insurance broker

When do I need a home insurance broker

If you own a home and you want to purchase insurance on it, you would need to contact an insurance provider. There are different channels to do that which have already been mentioned above. If you (as a homeowner ) are looking to buy insurance and you also want to compare different prices and offers to select the best coverage and price for you, then seeking the services of a home insurance broker might be what you need.

A home insurance broker has all the information you need about different insurance companies; their price, what they cover, where they cover, frequency of premium, etc. They save you from buying from the wrong insurance company for you and the stress of visiting different insurance companies to get their quotes.

What information do I need to provide to get an insurance quote?

Different insurance companies require different information to give you a quote for home insurance. Because of the difference in the type and conditions of different homes, This information helps your insurance provider to calculate your premiums so you don’t get undercharged or overcharged. Apart from the regular biometrics( name, age, address, etc) usually needed Generally, the information that  would be needed includes;

  • Structure of your home: what type of house is it(duplex, bungalow, mobile home, etc)? Does it have any external structure( a garage, a pool, etc)? What material is it made of, glass, wood, etc)? What types of fixtures are in the house? Etc The knowledge of this information would affect the price of your premiums.
  • Home security: they need to know what type of security system( burglar alarm, surveillance camera, smoke detector) you have in and around your home. The less your home is secured the more your insurance would be
  • Pet: do you have pets( dogs, snakes, etc) in your home that can cause damage to your property or to an individual. If you do, it could add to your premium rate
  • Condition of your home: does it need renovation or has any been done on it? Is there any damage to your home? These are some of the questions that would be asked about the condition of your home.

Do I get to pay my home insurance broker?

Mostly the insurance company where you YouTubefinally buys the policy pays the insurance broker. Sometimes their payment is calculated by a percentage of the premium paid.

Regulation of home insurance brokers

States are usually responsible for licensing insurance brokers working in the state. In order to get licensed the insurance broker needs to go through some courses and pass some exams. They might also be required to keep going through some upgrades in the future. Some states also require background checks on the intending broker for criminal records.

Summary

A home insurance broker is a middle between an insurance company and a homeowner who has the best interest of the homeowner at heart. Contacting one when the need to get your homeowner insurance arises can save you a lot of time and money.

What’s the difference between an insurance agent and an insurance broker?

Despite the fact that both agents and brokers deal with insurance providers and consumers, they are different in terms of whose interests they serve when making a purchase. While an insurance broker represents the insurance buyer, an insurance agent represents all of the insurance carriers they deal with.
Example of Brokers

What are the duties of an insurance broker?

talking about the need for insurance with prospective clients. examining every possible policy choice for the client. negotiating with underwriters to obtain the best insurance at the lowest cost. presenting the client with the policy’s specifics and having them sign the contract.