Pros & Cons of Using an Insurance Broker

When looking for property insurance policies, it may be worthwhile going through an insurance broker. Insurance brokers will act on behalf of you to provide advice and information about which insurance policy is the right fit. Insurance is complex and genuine expertise goes a long way.

Having an insurance broker allows you to make more informed decisions. You have someone you can communicate with and ask questions to ensure you are getting the most from your policy. Insurance brokers are usually experienced in a few key industries, so it is important to research brokers and ensure they are experts in property insurance before making any key decisions.

Why Might You Need an Insurance Broker?

If you are looking for an insurance policy unique to your requirements, it will take you a lot of time researching different policies from different insurance companies. If you are not experienced in insurance, you will likely end up with a policy which may not cover you for important situations. This is where getting an insurance broker becomes the best choice.

Experienced insurance brokers will take their time to completely understand what exactly you need for your property and the location. They will explore and customise policies to assure you are getting the right cover, for the best price. Insurance brokers have many advantages rather than simply searching for insurance on comparison sites. The policies offered on comparison sites are often very generic which means you will likely lack the necessary cover.

Brokers Understand Your Situation

When looking for which insurance broker to work with, it is important to assure they understand the requirements you have, and the area your property is located. This can be one of the biggest cons of using insurance brokers so it’s important to ask them a variety of questions to ensure they understand your situation.

A few great questions to ask your potential insurance broker include:

  • What are your qualifications?
  • Have you/do you work with many clients in my same situation?
  • What do you know about my needs?
  • Why should I choose your company over your competitors?

Brokers also spend the time to ask you questions and understand the needs you have. Be sure to give them ample information about what you need in your policy. They are objective and qualified insurance experts so you’ll get reliable and straightforward information.

Brokers Are on The Client’s Side

In the end, the brokers are firmly on the clients’ side. They will act as advocates always including during the time of a claim. This can reduce your stress levels and allows you to focus on more important things in life. Having the bonus of a broker allows you to make a more informed claim to ensure you are entitled to what you claim.

There Are No Added Costs

People are often under the assumption that going through a broker will be an extra cost you will need to pay. This is just simply not the case. Brokers are paid a commission which comes out of the cost of the insurance policy. This cost is absorbed by the insurance company rather than the client. In fact, some policies you will only find through your broker rather than the insurance company directly as the broker will discuss with the insurance company to tailor a policy for you.

So, Should I Get an Insurance Broker?

As you can see, the pros far outway the cons. If you’re looking to get an insurance policy that is tailored to your needs and requirements, the best way is by getting a broker. However, take your time and understand what a broker can do for you. It’s not as simple as just deciding on the first broker you find, shop around and find the one that suits you best.

When it comes down to it, if you need to use your insurance, you need to make sure you are covered for everything. We recommend you speak to a professional insurance broking service to discuss your insurance needs.

About Alex

This article is written by Alex Hamilton, a local writer interested in property investment and insurance solutions. You can catch him on Google+.