Glossary

Independent agent

An agent or agency appointed by several insurance companies that compares their coverage and prices for a customer and is paid by commission.

Also called: independent insurance agent, independent agency, IA, nonexclusive agent

An independent agent owns the agency and holds appointments, meaning sales contracts, with a number of insurance companies. When you ask for a homeowners quote, the agent can run your information against several of them and show you the options. The agency typically owns its customer records and renewal rights, so a policy can move with the agent even if a carrier leaves the market.

Pay comes from commissions that the insurer builds into the premium, so you generally do not pay the agent separately for a standard policy. Some agencies also earn contingent bonuses from insurers, and a few charge fees for specialty placements, so ask how yours is paid.

The advantage is flexibility. If one carrier nonrenews your home, the agent can try the others, and some can reach surplus lines carriers through wholesale brokers. The limit is that an independent agent can quote only the carriers it is appointed with, and some large insurers sell only through their own agents or direct. In many states the law treats the agent as the insurer's agent when binding coverage, even while shopping on your behalf.

Ask which companies the agency actually writes homeowners for in your area. The agent comparison guide helps you choose, and captive agent describes the other model.

Last reviewed October 10, 2026

In the index now

Related terms

Captive agent An agent who sells for a single insurance company or group, usually under an exclusive contract, so every quote comes from that company's products. Insurance broker A licensed intermediary who places coverage on the buyer's behalf with whichever insurers will take the risk, often including surplus lines markets. Direct writer An insurer that sells straight to consumers by website, phone, app or its own employees rather than through independent agents who represent several companies. Managing general agent (MGA) An agency that a carrier authorizes to quote, underwrite, bind and often service policies for a defined book of business, paid by commission and profit share. Nonrenewal An insurer's decision to end coverage at the end of the policy period by declining to offer another term, as opposed to ending it partway through. Surplus lines insurer An insurer not licensed in a state that may write risks the standard market declines, with freer rates and forms and usually no guaranty fund backing.

Related guides

Bundling home and auto insurance: when it pays A bundle pays only if the combined price beats the cheapest separate policies at equal coverage. How multi-policy discounts work, and Texas's 2025 ban on tying. Captive agents, independent agents and direct insurers How exclusive agents, independent agents and direct insurers differ on quotes, service and what happens when a company drops you, and which fits your situation. How to check an agent's or adjuster's license How to confirm an agent, broker, adjuster or public adjuster is licensed in your state, what the lookup shows, and what to do if you cannot find a name. Choosing a home insurance company: what actually matters How to choose a home insurer: whether it will write and keep your home, financial strength, claims record, coverage terms, price and company type. High-net-worth home insurers compared How Chubb, PURE, AIG Private Client Select, Berkley One and Vault differ on ownership, home-value minimums, rebuild terms and ratings, and what to ask a broker. Agency consolidation and what it means for your agent Brokers and private-equity-backed buyers keep acquiring independent agencies. What the deal data show, what changes for you, and how to protect your policy.

Related insurers

Acuity Insurance Sheboygan, Wisconsin mutual founded in 1925 and rated A+ by AM Best and S&P that sells home insurance through independent agents, mostly in the Midwest. Allied Trust Insurance Coastal homeowners insurer founded in 2015 and managed from Tampa that sells through independent agents in Louisiana, Texas, North Carolina and South Carolina. Allstate The No. 2 U.S. home insurer, a public company sold by Allstate agents and online, with National General for independent agents and Castle Key in Florida. American Integrity Insurance Tampa homeowners insurer founded in 2006 and public on the NYSE since 2025; sold by independent agents in Florida, Georgia and the Carolinas. American Modern Insurance Group Munich Re-owned specialty insurer for manufactured homes and for older, vacant, seasonal and rental homes that standard carriers turn down, sold through agents. The Andover Companies Andover, Massachusetts insurer founded in 1828, sold only through independent agents in eight states; a mutual holding company since January 2026.