Most homeowners confuse insurance brokers with insurance agents. Before we go any further, it's important to know the difference between the two. An insurance agent usually represents only one company, while a home insurance broker represents three or more insurance companies.
In fact, the insurance agent is primarily loyal to the insurance company he or she represents, and you, the policyholder, follow. An insurance broker is an independent intermediary who is first and foremost accountable to you, the policyholder, to whom he or she submits home insurance quotes.
Using an insurance broker is important because it saves you time, trouble, and money. Brokers are like accountants and lawyers, they can give you professional advice because of their long experience and training.
Using a broker does not have to be expensive. Brokers know the insurance market and how to negotiate premiums on your behalf that are often more advantageous. They can explain the policy and any special circumstances that need to be considered. They should also be able to tell you the cost of the services they provide.
Instructions for finding a home insurance broker.
Ask your family, friends, and colleagues for referrals. Referrals are more effective and they will be able to recommend someone with lower premiums.
Get referrals from organizations such as the Alliance of Insurance Agents and Brokers, whose database will help you find qualified insurance brokers. Review their profiles and track records, request home insurance quotes, and determine which companies can offer the lowest rates.
Check with the state insurance authority to find out if the broker is licensed, if he or she is authorized, and what experience he or she has. You can also ask the broker to provide proof of licensing.
Interview potential home insurance brokers. You should work with someone who is reliable, trustworthy, and loyal to you.
Gather all the information you receive, including profiles, backgrounds, references, accreditations, and home insurance offers, and carefully weigh the pros and cons of each.
Remember, a broker's services do not represent an insurance company. Their role is to explore the insurance market to find the right insurer that meets your needs and offers you the best coverage at the lowest price.
It will be to your advantage to establish a close business relationship with a broker who understands your project, the risks associated with home insurance, and the way you do business.
Once you have chosen your preferred home insurance broker, you should take the time to get to know them. This will allow you and your home insurance broker to discuss your concerns and determine if your relationship is working.
About Author
Lily Poole is a Property and landlord Insurance Agents in Bronx NY by profession. She is pretty well experienced in the insurance and accounting field. Further, she has an impressive profile in the training and development industry.
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