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Do you need a home insurance broker?

Do you need a home insurance broker?

Home insurance brokers weigh up different insurance options to help find the best policy for your needs. While they are not for everyone, some people find them helpful to navigate through the insurance market. 

If you’re unsure about how to find the most appropriate home and content insurance policy, you may consider hiring an insurance broker. Insurance policies can be very confusing with all the jargon and complicated terms and conditions. You may also be confused about what risks to cover. A home and content insurance broker can help you understand and evaluate the various options.

Benefits of brokers

Brokers work with you to help you find the best insurance cover. Some of the benefits to you are as follows:

  • They assess your requirements and budget to find the best policy with maximum cover;
  • Brokers assist you in understanding the technical terms, features of different policies, and providing answers to your questions;
  • They can sometimes find deals and discounts and negotiate favourable terms on your behalf.
  • Brokers can offer guidance in case you need to file a claim. 

Sometimes insurers pay a commission to the online home insurance broker when you purchase a policy. The broker may also charge a fee for providing advice. It’s worth  clarifying if the brokers receive commission and how they charge before hiring their services. This could affect the insurer they recommend. 

How to choose the best home insurance broker?

While there is no ‘best home insurance broker’ for everyone, a quick online search for home insurance brokers near me should provide you with several options. You can search on the National Insurance Brokers Association to find a qualified and registered broker. 

It’s worth  considering factors such as experience, services offered, references from past clients, point of contact (if you work with a larger firm), and if she or he will charge any consulting fees or receive a commission from the insurance company.

Difference between insurance agents and brokers

Insurance agents represent one insurer while brokers are independent service providers and do not work for only one company. Agents can provide guidance only on the policies offered by the insurance company they represent. Insurance brokers can give various options from different insurers and guide you on the best policy to suit your requirements.

You may ask if insurance brokers are impartial; yes, because their responsibility is to offer the best policy in your interest. Brokers are also legally required to declare any fees or commission receivable upfront to enable you to make an informed decision.

Is policy customisation possible?

Insurance brokers understand your requirements and can customise the cover to suit these needs. For example, they can help you procure multiple policies from different insurers or customise the policy as per your budget while covering the necessary risks. Brokers may also get you optional extras, vary the excess to adjust the premium cost, or enhance the cover limit for your benefit.

High-value home insurance brokers have wider access to different products suitable for properties with higher prices and are well-connected in the industry. This allows them to negotiate better terms and offer you a better deal at competitive pricing.

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