A broker is an insurance expert who legally represents individuals or companies looking to purchase insurance. In some states, insurance brokers have a fiduciary duty to customers, meaning that they are required by law to act solely for the benefit of their customers. Real estate brokers (often simply called “brokers”) are licensed professionals who help people buy, sell or rent properties. Depending on the situation, a broker may represent the buyer, the seller, or both. This broker represents the interests of the seller.
Its main objective is to sell the property at the highest possible price in the shortest possible time. Traditionally, insurance agents represent the insurer and brokers represent the customer. What an agent can offer you depends on the coverages offered by the companies they work with, while an insurance broker may turn to many insurers to find the best policy for your needs. The dual agency, where a broker represents both the buyer and the seller, is one of the most debated topics in the real estate world.
Keep in mind that while agents won't charge additional fees, you may have to pay a brokerage fee for the additional services you receive. Navigating the real estate market can be complex, but understanding the role and responsibilities of brokers makes the process clearer and more manageable. As a customer, you have the right to loyalty, disclosure, confidentiality and due diligence on the part of your broker. Both types of professionals assess risk, offer suggestions about policy coverage, offer a selection of options, participate in the claims process and act as your representative in relations with the insurer.
Because brokers don't represent insurance companies, they can't link coverage on behalf of an insurer when buying insurance. Proponents argue that the dual agency can streamline transactions, since a broker handles all communications. Brokers often play a more consultative role in finding coverage than agents, because brokers have a responsibility to represent the client's best interests. You might not notice much difference when you talk to a broker or agent, as both provide similar services, such as evaluating coverage options or helping you file claims.
To the buyer's surprise, the listed broker is required to communicate all of this information to their director, the seller. The broker assesses the market value of the property, lists it on several platforms, markets it to potential buyers and negotiates offers. And like any small business, both insurance agents and brokers need business insurance to be able to operate in many locations. Insurance brokers can request quotes and policies from insurers and submit requests on your behalf, but they cannot link your coverage or provide an insurance folder on behalf of the insurance company, since they are not an insurer.
They may consult with other brokers or agents, or directly with an insurance company, to find a policy that fits your needs and budget.
