Best Way to Find an Insurance Broker?

Question

We want one to help us handle policies for the house we live in, our cars and our rental properties (we have 3 units and are about to close on our 4th but intend to scale up significantly over the next few years).

Googling "insurance broker" has just netted me results for "insurance agent" so far. Would love it if someone can point me in the right direction. Thanks!

Kevin Koone · Answer

Man I'm sure it exists somewhere.  I just don't deal with it around here.

I feel like I'm selling something here but I would just reiterate if you can find a good agent, that has multiple companies, they can fill both roles for you.

Here's how I work when I talk to an insured.  I have a checklist of everything I need to get in order to quote whatever type of business they're looking for.  Then we dive in deeper to see if there's any issues out of the norm that we need to address or find a solution for.  I gets quotes from every company that might be interested.  We talk about the quotes the differences in coverage, in cost etc.  We look ahead and make sure it's going to be a fit for the foreseeable future and then we move forward.  I'm not worried about different commission structures or anything like that on my end.  I'm wanting the customer to be taken care of and ultimately keep them here and happy for as long as possible. This process make take a few hours or a few weeks.

That's oversimplified but you get the idea.  I'd like to think you could find someone local to you that could do the same thing.

Jason Bott · Answer

@Scott Munn you are referring to an insurance consultant.  It is common in the commercial space, but not for personal.  Consultants usually only comes into the picture if your paying more than $500k per year in insurance premium, but more commonly $1M.

I have seen some consultants go as low as $5k for a review on a $300k premium program, but their minimums are typically $10k-$15k.

I have not seen it used with personal home and auto.

Scott Munn · Answer

Jason,

Thanks so much for the clarification. I am starting to get a handle on where I should be headed.

Scott Munn · Answer

Ok, just saw your last post. Thanks a bunch.

Scott Munn · Answer

I apologize if I am getting this confused. The distinction that I kept seeing made between "broker" and "agent" is that the agent ultimately sells the policy and the broker cannot sell the policy but must ultimately rely on the independent agency to make the sale. The attraction to "broker" for me is that they always act in the consumer's best interests and act more like a consultant.

Does what I am saying make sense or am I trying to find something that doesn't exist? :)  Thanks again.

Kevin Koone · Answer

OH!  I get it now.  That's not really something that happens here.  I can tell you I spend just as much time recommending options to clients that I don't end up writing business for than I do writing business for clients because I just want to do right by everyone I can and believe they'll come back to me someday even if now's not the time.

I guess I would call what you're looking for a "consultant" and if you can find a good agent they'll do both jobs for you without you paying for someone else.

Scott Munn · Answer

Kevin,

Thanks again for taking the time to help.

By broker I mean someone who represents the consumer in evaluating different policies but doesn't actually sell the policy, as opposed to an independent agent who represents multiple insurers and sells the policy to the consumer.

Kevin Koone · Answer

Scott,  that's an independent agent.  They have multiple companies, not tied to any,  and can provide you the best options for whatever your changing needs might be.  Do a search for that in your area and see what comes up.  Or even better if you're involved with any groups or investors see who they recommend.  Do you have a local REIA group?  Might be a good place to start.  Or check and see if there's activity in the Michigan forum here on BP.

Scott Munn · Answer

Kevin,

Thanks for the quick response. We are in Michigan. We do actually want a broker though because we would like someone who is acting in our interest, able to evaluate multiple policies and also to essentially manage those policies and keep the details straight. What do you think?

Kevin Koone · Answer

Scott,

Agent and Broker are used differently depending on where you are in the country :).  Here brokers are not who the end user(you) would deal with.  You need an agent.  I highly recommend and independent agent especially when you're looking at investment property.  Where are you?

Best Way to Find an Insurance Broker?

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