Insurance broker

A broker, in the traditional sense, works for the buyer. Where an agent is appointed by insurers to sell their products, a broker searches the market for the customer and has no exclusive tie to any company. For homeowners insurance the line has blurred. Many firms that call themselves brokers also hold agency appointments, and many states issue one producer license that covers both roles, so what the firm is called tells you less than how it is paid and whom it can quote.

Brokers earn their keep on hard-to-place homes. A broker who handles high-value houses, coastal property, older roofs or wildfire exposure usually has access to carriers an ordinary agent does not. A surplus lines broker is licensed to place business with non-admitted insurers, and a wholesale broker sells only through other agents, not to the public. If you buy through a retail agent and the home ends up in surplus lines, a wholesale broker is often in the chain, adding its commission.

Compensation is either a commission built into the premium, a fee you agree to, or both. Ask for any fee in writing before you sign, confirm which insurer is issuing the policy and save the binder. See how agents and brokers differ and surplus lines coverage for specialty placements.