What Is a Home Insurance Broker?

Also: Use Homeowners Insurance Quotes To Save Money

By Meha Ahmad, InsuranceAgents.com Staff Writer

If you’re not 100 percent satisfied with the service from your home insurance agent, you may want to consider giving your business instead to a home insurance broker. The level of service may be better and you may find cheaper insurance. To find cheaper insurance now, start by shopping online using our quick quote form for homeowners insurance quotes.

Home Insurance Broker vs. Insurance Agent

Some homeowners are confused on what the difference is between a home insurance broker and a home insurance agent. Though both do offer homeowners insurance quotes, there are key differences.

A home insurance agent typically represents one company. As for a home insurance broker, he/she represents three or more insurance companies. The insurance agent is an insurance professional who is recruited by an insurance company to work exclusively for them. Essentially, the agent’s allegiance is going to be with the insurance company they represent first, then the policyholder (you) second, while a home insurance broker is an independent agent whose primary allegiance typically goes to the policyholder to whom he offers homeowners insurance quotes. They usually do not have any contractual agreements between them and the insurance provider.

Finding A Home Insurance Broker

1. Get Recommendations. Ask friends, family, coworkers, or your accountant/financial advisor for any recommendations they may have for a home insurance broker. Word of mouth—especially from people who know you and whom you trust—can yield some good results. Ask them which insurance brokers gave them the lowest homeowners insurance quotes.
2. Talk To Organizations For More Referrals. Ask organizations—like the Alliance of Insurance Agents and Brokers—for help finding a qualified local insurance broker from their vast database of professionals. Check their histories/profiles and ask for homeowners insurance quotes to see which ones give you the most affordable rates.
3. Make Sure They Are Licensed. If you meet with a home insurance broker who is not licensed, do not ask them for homeowners insurance quotes and do not give them your business. Check with your state insurance department to guarantee that they are, in fact, licensed and check their license status and history. When talking to brokers and receiving homeowners insurance quotes, ask them themselves for proof of their license.
4. Conduct Interviews. Just like with an insurance agent, your home insurance broker needs to be someone you feel comfortable with handling your policy. They should be reliable, trustworthy and loyal to you. Talk to any broker you’re considering doing business with; discuss what low homeowners insurance quotes they can offer you.
5. Multi-policy broker. You may be able to find lower homeowners insurance quotes if you purchase more than one policy through your home insurance broker (i.e. health, life, auto).
6. Compare, compare, compare. Gather all the information you’ve come up with—multiple insurance brokers’ profiles and referrals, histories, licensing and homeowners insurance quotes—and compare the pros and cons of each broker.

Keep in mind that the acts and service from an insurance broker is not representative of the insurance company. The broker’s job is to navigate the waters of the insurance market, finding you a company that suits your home insurance needs and can offer you the lowest homeowners insurance quotes for the most coverage. Start comparing quotes using our quick online form.

Published: Friday 31st July 2009