What to reasonably expect from an insurance broker?

City_Girl_3

I've heard that it's always best to get home insurance through an insurance broker because they know which are the 'good' insurance companies who actually pay out in case of a claim. I tried to use a few different brokers in the last few years but I always end up sorting out the insurance myself because the broker process is excruciatingly long & complicated.  

I decided to try one more time.  Before calling them, I used one of the comparison sites an found a policy from LV for around £1,000 that met all our needs (Home Plus cover), and was comparable to our existing policy with Direct Line (who I wasn't impressed with at all) whose renewal is £1100.

So I was really shocked when the broker, who seemingly took me through all the same questions I answered on the comparison site, quoted me £1600 for a policy from LV.  As far as I can tell the Home Plus policy I found was the most comprehensive/expensive policy.  They recommended another team take a look at our needs using their panel insurers, rather than the standard consumer ones available.  It's been 10 days and still no quote, but every few days they ask me a few more technical questions so it does seem to be moving along at a snail's pace.

So my question is this:  has anyone here ever used a home insurance broker before and what was your experience?  Is this typical?  Am I completely wasting my time?  Or is there some hidden gem that's worth waiting for?

I sort of expected it would be like using a mortgage broker which I always use because 99% of the time they find me a deal that costs the same or less than what I would have otherwise found myself.  But with insurance, it's just been painful.  NB: We do tend to need the premium policies (high rebuild cost and upper end of typical contents cover, but nothing else exceptional).

dunstonh

I've heard that it's always best to get home insurance through an insurance broker because they know which are the 'good' insurance companies who actually pay out in case of a claim. 

I've not heard that about home insurance for about 20 years but it is true in other areas of insurance.  It can be true with more niche/focused types of home insurance (non-standard build, rural properties, larger properties with land etc)

I tried to use a few different brokers in the last few years but I always end up sorting out the insurance myself because the broker process is excruciatingly long & complicated.  

When you DIY, you only have yourself to blame if it goes wrong.  The broker has the liability of making sure what you have is suitable for you.    That is where the extra work comes in.

I sort of expected it would be like using a mortgage broker which I always use because 99% of the time they find me a deal that costs the same or less than what I would have otherwise found myself.  But with insurance, it's just been painful.  NB: We do tend to need the premium policies (high rebuild cost and upper end of typical contents cover, but nothing else exceptional).

Its not comparable to a mortgage broker where the products are identical (in most cases) whether you go direct or use the broker.

So I was really shocked when the broker, who seemingly took me through all the same questions I answered on the comparison site, quoted me £1600 for a policy from LV.  As far as I can tell the Home Plus policy I found was the most comprehensive/expensive policy. 

That plan will have a number of bolt on options.   Are you comparing prices using the same bolt on options. i.e. if your quote doesn't include personal possessions cover but theirs does, then that could account for the difference.   Or accidental (full accidental that is) vs standard (with only a handful of things covered for accidental).

Cost of distribution is going to lead to some differences but this seems too big for a like-for-like basis from the same provider.

Sandtree

City_Girl_3 said:

I've heard that it's always best to get home insurance through an insurance broker because they know which are the 'good' insurance companies who actually pay out in case of a claim. 

There are two types of brokers... advisory and non-advisory. There are also two ways brokers can operate, either having a standard set of terms what all panel insurers quote to or they can take the insurers own terms.

The vast majority of brokers these days in the consumer market are non-advisory so them quoting for you, particularly if they use insurers own terms, is little different to putting your details into confused.com... indeed most the bigger brokers are on aggregators. The one difference can be that products sold direct may be either slightly different coverage or different pricing than those via intermediaries.

Whilst some may be a small number that are selective of who they accept on their panel based on experience etc the reality is the majority will get everyone they can on their panel because price is king for 99% of customers and the larger your panel the better chances you have of quoting the lowest price. 

When you start getting into the mid net worth and high net worth area then you more advisory brokers.

City_Girl_3

dunstonh said:

That plan will have a number of bolt on options.   Are you comparing prices using the same bolt on options. i.e. if your quote doesn't include personal possessions cover but theirs does, then that could account for the difference.   Or accidental (full accidental that is) vs standard (with only a handful of things covered for accidental).

Cost of distribution is going to lead to some differences but this seems too big for a like-for-like basis from the same provider.

The quote I got from LV direct included all the bolt on options offered (full accident cover on home and contents, legal, home emergency).  The personal possession offered as standard on the Home Plus exceeds my needs so could not have been less than what the broker quoted.

I'm still waiting for the broker new quote, and will see if I can better understand this!  Thank you.

City_Girl_3

Sandtree said:

There are two types of brokers... advisory and non-advisory. There are also two ways brokers can operate, either having a standard set of terms what all panel insurers quote to or they can take the insurers own terms.

Thanks Sandtree, that is helpful.  It sounds like the first person I spoke to was non-advisory and taking insurer terms (or possibly own terms which could explain the price difference?).  She's now passed me on to a specialist team who are looking into some specific needs (i.e. I'm planning to rebuild my summer house later this year, so many of the questions she's had was about this work).  It sounds like they might be advisory?  I've checked their website and cannot see how I can tell but I'll ask them next time I can get hold of them.

Thanks!

TELLIT01

For a pretty bog standard policy there is no need to get a broker involved.  They come into their own when there is something out of the ordinary in the insurance requirements.

Sandtree

City_Girl_3 said:

Sandtree said:

There are two types of brokers... advisory and non-advisory. There are also two ways brokers can operate, either having a standard set of terms what all panel insurers quote to or they can take the insurers own terms.

Thanks Sandtree, that is helpful.  It sounds like the first person I spoke to was non-advisory and taking insurer terms (or possibly own terms which could explain the price difference?).  She's now passed me on to a specialist team who are looking into some specific needs (i.e. I'm planning to rebuild my summer house later this year, so many of the questions she's had was about this work).  It sounds like they might be advisory?  I've checked their website and cannot see how I can tell but I'll ask them next time I can get hold of them.

Thanks!

There is normally a long spiel that they give you for non-advisory sales telling you all they are doing is presenting you with options and not making recommendations and its up to you to determine if the policy is suitable for your needs.