A home insurance broker is someone who can help you find and compare coverage options from multiple different companies. While a broker can't technically sell you home insurance, they can find you a company that is willing to do so.
Local brokers are generally familiar with each company's rules and what they're willing to cover, making them a good option for homeowners with complex coverage needs.
What is a home insurance broker?
A home insurance broker is an individual or company who can match you with insurance companies based on your coverage and budget needs. If you’re looking for a home insurance broker, you can usually get a referral through your mortgage servicer, or you can shop for home insurance and compare quotes with Policygenius.
Insurance brokers vs. independent insurance agents
The main difference between a broker and an independent agent is who they represent. A broker represents the customer, while an independent agent represents an insurance company. Below are the main ways brokers and agents differ.
Represents the insurance buyer
Helps the buyer compare insurance options from multiple different insurance companies
Typically receives a commission from insurance companies
May charge a fee to customers, depending on the broker
Cannot directly sell insurance policies
Represents multiple insurance companies
Works with specific insurers
Can help clients compare policies from the insurers they work with
Receives commission from insurers
Sell insurance policies on behalf of specific companies
How do home insurance brokers make money?
Insurance brokers typically receive a commission from the insurance company after the policy is sold. Some brokers do charge clients with a brokers fee, but generally brokers make their money through commissions based on sales. Commissions vary, but they're generally a percentage of the premium cost. In many cases, brokers may receive an additional commission if you renew your insurance plan, incentivizing them even further to make sure you’re satisfied with your coverage.
Pros of using a broker to buy homeowners insurance
Below are some of the ways a home insurance broker can help aid the process:
Brokers will listen to your needs and compare multiple policies across several different companies on your behalf.
You can submit your information once with them and get back multiple quotes from different companies, rather than having to input it again and again.
Home insurance brokers keep all your information on file which could be useful if your application gets declined.
A broker can easily re-submit your application or reuse your personal info across multiple applications if you need different or more coverage.
Cons of using a broker to buy homeowners insurance
Working with a home insurance broker can save you lots of valuable time and money in the long run — but not always. Here are some things to keep in mind before you hire a broker:
Home insurance brokers are essentially salespeople, so the more expensive a policy you buy, the more commission a broker gets paid — a good broker won’t sell you more insurance than you need and will even help you avoid overpaying.
Some brokers may charge a fee for using their services.