Difference Between Insurance Agent and Broker

The person who helps you buy home insurance matters. Learn the difference between how a broker and agent operate. Perhaps the most common gray area lies with insurance agents vs insurance brokers. They sound similar, but there are some key differences.

What Does an Insurance Broker Do?

An insurance broker is an intermediary between the insurance buyer (the customer) and the insurance company, representing the buyer.

Insurance brokers can bind insurance policies due the contracts through contractual agreements they have with various insurance companies. They operate by soliciting business from buyers and submitting their completed applications to various insurers. An insurance broker generally deals directly with the customer to get them insurance.

What Does an Insurance Agent Do?

An insurance agent also interacts with both an insurance, but represents the insurance company. Their goal is to facilitate the purchase of insurance with the carrier they represent.

Since insurance agents only work for one company, they may have a greater understanding of the specific product offered because they are only expected to know what that specific company has. However, they are limited to only sell in that domain.

How Do I Find an Agent or Broker?

When you are buying a home, your real estate agent will usually connect you with their insurance agent or broker of choice. It often makes sense to explore this connection; your agent likely has a good feel for the local market, and who they’ve had good experiences with before.

But you should still do your research. Checking to see if friends or neighbours have had a positive experience can provide an unbiased option for review. There are also many sites that offer reviews of agents and brokers as well.

The important thing is to be confident in the relationship that you have with your agent or broker, and to be confident that you have the right coverage for your home at a price that suits your needs and leaves you covered for the biggest risks.

Source: Kin Insurance