How to find an Insurance broker- Guidance needed

How to find an Insurance broker- Guidance needed

Daniel MendezPro Member
Investor · Dallas, TX · Member since 2018 · 254 posts · 47 votes

Good afternoon BP,

I am a new investor and looking to build my network. 

One of the obstacles that I have encountered recently is finding an insurance broker. 

I wanted to reach out to all of you and see if you could provide me guidance on a couple of questions.

  1. Is an insurance broker the same as an agent that works at an Allstate, State Farm etc?
  2. How do you go about finding an insurance broker?
  3. Can an insurance broker help me with any property no matter what state?
  4. Should I be interviewing insurance brokers? If so, what should I ask?

Your guidance is greatly appreciated.

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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
7y

@Daniel Mendez

If your looking for insurance for rental property I do not think a broker is the correct route.  I use State Farm for most of my rentals and they are able to beat most brokers.  Excellent company and are very good at responding to a claim.  Careful of using small companies to save a couple of dollars, many are slow to respond to claims in my experience.  Its not worth it.

Good Luck.  

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  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    7y

    @Daniel Mendez

    If your looking for insurance for rental property I do not think a broker is the correct route.  I use State Farm for most of my rentals and they are able to beat most brokers.  Excellent company and are very good at responding to a claim.  Careful of using small companies to save a couple of dollars, many are slow to respond to claims in my experience.  Its not worth it.

    Good Luck.  

  • Daniel MendezPro Member
    OP
    Investor · Dallas, TX · Member since 2018 · 254 posts · 47 votes
    7y

    @Kenneth Garrett Thank you very much! If I may ask, what is an insurance broker? And how is he/she different than an agent working at companies such as State Farm?

  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    7y

    @Daniel Mendez

    An insurance broker is similar to a mortgage broker.  They have relationships with a number of carriers and will shop your criteria to find the lowest rate.  The brokers fee is included in there as well.  Sometimes its best to use a broker for hard to insure properties or for example you need a policy for a vacant property which not every company will insure.  If you are acting as the general contractor and need insurance for liability and workman's comp I would use a broker.

    Hope this helps.  

  • Daniel MendezPro Member
    OP
    Investor · Dallas, TX · Member since 2018 · 254 posts · 47 votes
    7y

    @Kenneth Garrett Yes this definitely helps out! In regards to a mortgage broker, I would only use them if I am having trouble finding lenders to finance my rehab property correct? Also, the fee for the brokers is that something I pay up front? Or is that included in my closing costs? 

  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    7y

    @Daniel Mendez

    It depends on the broker.  Many times it can be rolled into the closing cost, but there are brokers who will need an application fee upfront as well as the appraisal fee.

  • Daniel MendezPro Member
    OP
    Investor · Dallas, TX · Member since 2018 · 254 posts · 47 votes
    7y

    @Kenneth Garrett so the only benefit of using a mortgage broker is that they do all the leg work for me on finding a good lending company that can provide me a good mortgage?

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