Buying a home is a huge financial investment and you want to make sure your home insurance policy is not only affordable but offers you the coverage you need.
You can shop online for a policy and hope that it provides everything you require. However, by seeking the advice and support of a home insurance broker, you can rest assured that you’ll receive the best insurance package at the best rate.
They aren’t limited to dealing with one insurance provider – they can seek multiple quotes to find an affordable insurance company that can match your needs. For more information feel free to visit https://www.morisoninsurance.ca/home-insurance/cottage-insurance.
But how do you go about choosing the right home insurance broker? Let’s take a look at what an insurance broker does and what to look for when choosing one for your insurance needs:
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What Does an Insurance Broker Do?
An insurance broker sells insurance but they don’t work for an insurance company. They shop around using multiple insurance companies on your behalf to find you the best rates and packages to suit your unique needs.
In short, insurance brokers will find you the best homeowners insurance policy. They specialize in finding the lowest rates by combing through insurance offerings from many different companies. They also assess the offerings to ensure you have the right fit.
Insurance brokers are professionals who must pass exams and continue their education in order to hold a license to work in their province.
After gathering your information, the broker will shop around and find the coverage options and annual premiums. They will give you a quote and, if you choose to take it, the insurance provider will pay the broker a commission.
Not only do home insurance brokers provide policies but they also provide information and support. They will help coordinate premium payouts, request policy changes, and make renewal recommendations all on your behalf.
They continue to be a liaison between you and the insurance company!
Do Insurance Brokers Cost More?
No one works for free – and insurance brokers are no exception! However, they don’t make their money from you. They are paid by the insurance companies.
Even though a home insurance broker makes a commission, they are bound by fiduciary duty to act in the best interests of their clients, not the insurance providers. This means that they cannot push you toward more expensive homeowners insurance policies just to make more money.
Likewise, they will not encourage you to buy cheap home insurance in order to “get a sale”. Their goal is to find you an insurance product that matches your needs and budget to ensure you are completely covered and satisfied.
So when it comes to choosing an insurance broker for your home insurance needs, you need not worry about any additional costs beyond the price of the policy you choose!
Insurance Brokers Versus Insurance Agents
While these terms may seem interchangeable, there are some very notable differences between insurance brokers and insurance agents.
Home insurance brokers work directly with you and focus on understanding your requirements, basic details, and budget. They get to know you in order to recommend the best options from multiple homeowners insurance companies. Benson Kearley IFG: Barrie Insurance Brokers is an example of a company with agents that work with you directly.
Alternatively, insurance agents typically work for only select homeowners insurance companies and have limited access to insurance quotes. They can only offer products available to them and may also encourage you to choose an insurance package that is in their best interest (and not yours).
Furthermore, insurance brokers are required to have licensing and credentials in order to provide home insurance quotes and services. In Ontario, the RIBO (Registered Insurance Brokers of Ontario) regulates licensing, competence, and more.
3 Tips for Choosing the Right Home Insurance Broker
An insurance broker can help you find comprehensive and affordable insurance coverage that meets your needs – but there are aspects of choosing the right home insurance broker you should pay attention to:
1. Personalized Service
A home insurance plan is a personal product so it’s beneficial to purchase it from an insurance broker. You can choose from independent agents who work for one insurance company or speak to an insurance broker who can offer insurance products from several companies and customize the plans according to your unique needs.
Insurance brokers can also offer personalized advice because they take the time to understand your needs and recommend appropriate products. Not only does this ensure that your needs are satisfied but it can also lower the cost of homeowners insurance.
2. Experience and Knowledge
Experienced insurance brokers have a network of clients beyond those of independent agents and their experience helps them understand your individual requirements and come up with tailored solutions and coverages.
Their expansive knowledge base also means that they can thoroughly explain what your home insurance policy covers including the various clauses and terminology. This can help you decide whether or not the dwelling coverage will cover essential aspects of your home and protect your personal property from hazards.
3. Availability
Whether you choose an insurance broker or insurance agent, availability and prompt response times are key. When you have a question or concern or need to go through the claims process, you want an insurance provider who responds quickly, treats you with respect and offers strong customer service.
Overall, you want an insurance broker who is dedicated to providing you with reliable service.
Purchasing Homeowners Insurance
Buying a home is an exciting investment but, in order to enjoy the long-term benefits, you need to protect your home against unforeseen disasters.
Having homeowners insurance is one of the most important financial decisions you can make!
However, homeowners insurance can be complicated, which is why it is recommended that you seek the advice and support of an experienced and knowledgeable insurance broker.
They can help you understand what you are signing up for and guide you through choosing the best coverage for your needs.
