Insurance Agents: Do You Really Need One for Home Insurance?

When it comes time to look around and get a quote for homeowners insurance in New York, you may start feeling overwhelmed, and this is when you turn to an insurance broker, otherwise known as an insurance agent. 

What is an Insurance Agent?

Insurance agents are brokers that work for you to help you find the best insurance agency for your specific needs. They have both your information and the knowledge to find a policy that suits your needs for a good price. Although brokers can save you money, you may need to pay a fee for their services.

A great example of how to get the best home insurance in New York is by working with NY Insurance Hub, they can get you a reasonable price, with less time and effort on your part, making it perfect for the busy homeowners out there.

When Do You Need an Insurance Agent?

Not everyone needs to use a broker. This is because it’s down to personal preference, if your needs are simple or you’re just renewing an old contract, you may not need one. But, if you have complex insurance needs, you may need one.

In general here’s how to tell if you can benefit from an insurance broker: 

  •     If you have multiple cars or homes.
  •     If you want to understand the intricacies of your policy with factors like exclusions and limits.
  •     Want to shop around with multiple insurers without wasting time and energy.
  •     Need first homeowners’ insurance and don’t know where to start.
  •     Need someone to advise you on your car insurance laws per state.

Agents are Paid Via Commissions

Knowing how agents are paid will help protect you from those who care more about making money than getting the right policy. 

In America, most agents receive a commission from the insurer when they place you with this company. The amount of the fee varies according to the insurance and the company and is usually calculated as a percentage of the premium. In addition to maintaining their reputation, agents also have a financial reason for you to follow and maintain their policy. If you cancel your policy or stop paying in the first few years, the agent may have to return the commission to the insurer. 

The agent fee is automatically included in the insurance price. If you bought the policy yourself, you would still pay the same price, the insurer just wouldn’t have to pay the commission. 

 Since agents are paid by each company they work with, in theory, they should not promote one company over another. However, some companies offer bonuses or gifts to insurance brokers to bring in customers and higher incentives for those who bring in more business. Again, always ask in advance how the commission works as some agencies are moving away from this model. 

Benefits of Insurance Agents for Home Insurance

Here’s why locals in New York are still heading to independent agents. 

Local Knowledge is Vital

Local agents understand local problems that may arise. For example, a local agent in Oklahoma who is exposed to high winds and tornadoes understands the importance of properly accounting for and covering wind and hail damage. However, the New York-based agent has several other local issues to deal with.

Community is Important

Local agents have insider knowledge of your hometown and community, giving them an advantage over large companies that may be located out of state. Local agents who work and live in the same area provide a distinctly personal service to homeowners purchasing insurance.

Get Rid of Standardised Plans

Online is not always easier. Many homeowners may think that going online saves them time, but does it save them money? 

There is very little information on the internet about what they actually sell and almost no communication to ask. Basically, the sites ask if you want “good,” “better,” or “best” coverage, but what does that mean? This is where agents help.

Don’t Be a Statistic

Local insurers are more likely to have more personal relationships with their clients. Those who choose a major insurance company often receive the same written responses that target the account number rather than the actual name, this can make you feel like you aren’t being cared for, especially if a life event happens and you need to make a claim. 

If you’re on the fence, just ask yourself: would you rather work with someone who knows you as an ID number, or an independent agent who knows your needs and can help you find a solution for them?


NY Insurance Hub Agency

125 Wolf Rd STE 404 Albany,

NY 12205 518-783-0105


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