5 reasons to use an insurance broker

September 12, 2012

Landlords Insurance

The role of the insurance broker is sometimes misunderstood and this occasionally leads to the rather mistaken perception that they are organisations that somehow need to be bypassed in order to find the best deals.

In fact, to the contrary, there are situations in which it may be advisable to consult landlords insurance brokers if you are looking for a suitable and cost-effective solution:

  1. brokers operate on the basis of maintaining relationships with numbers of insurance providers.  They understand their products very well in addition to the general insurance market that they are operating in;
  2. some may specialise in one or more lines of business, such as landlord cover.  That means they may have a good understanding of the industry as well as simply the insurance implications;
  3. what this means is that they may be very good at understanding the specific nature of a potential policyholder’s situation and matching it against one or more suitable policy solutions;
  4. one of the great misconceptions is that cover purchased from a broker must somehow be more expensive than that available directly from insurance providers.  This is based upon the incorrect belief that the broker is adding their percentage to the price.  In fact, typically their profit is based on commission paid by the insurance providers and they may even have access to tariffs and products that are not available to the general public;
  5. they may also be able to assist you in comparing options from a number of different providers.  This is not always simply a case of looking at the price tag and choosing the cheapest – some policies may be far more suitable for your needs than others and they may be able to highlight this to you.

In essence, these organisations may be seen as domain experts who sit astride both the particular nature of a business requirement and the insurance marketplace that may be able to service it.

So, rather than viewing them suspiciously, it might be worth consulting them.  Ultimately this is something that you can do entirely without any obligation and you have little to lose if you compare their offerings with those you may have obtained elsewhere.

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