After you buy a new home, one of the first things you have to start looking for is the home insurance. What feels like an additional cost burden, can actually prove to be a blessing in disguise in the long run. But for that purpose, you should wisely choose and manage your home insurance.
You can get your home insurance either through an agent or broker. An agent will offer you insurance policies of the specific company, they are representing. A broker, on the other hand, can offer you multiple options and help you decide what’s best for you.
Here are some ways in which a home insurance broker can save your money:
1. Unbiased advice – Since agents represent insurance companies their loyalties lie with them. Their focus is mainly on selling a policy to you. It’s possible that you may be influenced to choose a policy that doesn’t quite serve your purpose. A good broker would understand your needs and financial position and accordingly advise you of the best option for you.
2. More options to choose from – The broker would discuss the pros and cons of multiple insurance policies of different companies. Based on your requirements, he will help you understand what will work best for you and secure a good deal. You could also easily take a bundle car and auto insurance policy through a broker and avail of a good discount.
3. Expertise – They would advise you of the different ways you can reduce home insurance costs by making a few changes. The broker has the expertise to see that your records are updated and you pull out the required records when required.
4. Personal connection – It often happens that the broker develops a personal connection with the clients that keeps growing over the years. There could be changes in your situation or that of the house which could bring down your insurance costs and you may not have realized it. Since the broker knows you personally, they can advise you on points that you may fail to point out.
5. Transparency – The broker doesn’t charge you for providing the home insurance. They receive a commission from the insurance company. There is no benefit to them in picking one policy over the other. They clearly share details about the remuneration they would get if you feel the need to ask for it. This prevents misuse and overcharging to clients.
6. Making insurance claims – Most people think that by making claims they are recovering their insurance costs but it is far from true. The broker will advise you to avoid frequent and small claim because it would give the impression of higher risks and so the premiums would increase. He would guide you in the necessary paperwork required when you have to make a claim so that the process becomes speedy and hassle-free.
An insurance broker is an expert who works for you. Their expertise will help you choose the right policy and coverage based on what you need. It’s always a better idea to get home insurance advise from a trusted insurance broker than going through the hassle of getting ten different quotes without understanding the intricacies of the policies.