So, you finally decided to buy a strata-titled property. You are thinking about getting residential strata insurance as it is required by law. While you may think of simply waiting for other owners sharing the same facility or amenities as you, it may be high time to find out for yourself the best route of finding the best coverage, broker or insurance agent?
Broker vs Insurance Agent
Perhaps one of the most frequently asked questions among residential strata owners is, what is the difference between an insurance broker to that of an insurance agent? Aren’t these two meant to give owners the mantle of protection they need for their shared properties?
At first glance, both broker and insurance agent seem to deliver one important goal, to give you a guarantee for protection from possible losses in the future concerning your shared properties. A deeper look, however, will show you some significant advantages and drawbacks. To give you an idea, here’s a summary on their differences and how building a relationship with the right insurance professional will spell success or trouble for you and your co-owners.
- Insurance Agent. An insurance professional, this person acts as a go-between or intermediary between an insurance company and you or a body corporate representing your residential strata property. There are two types of insurance agents, captive (single insurer only) or independent (multiple insurance companies). Their main obligation is purely administrative. This means, they only present to you insurance policies pre-made by the insurer. It is not in their interest to evaluate the property or make necessary recommendations.
- Insurance Broker. On the other hand, an insurance broker is often called the king or queen of all independent insurance agents as they offer wide-ranging insurance products. Licensed by the state, they need to undergo required training and examination giving them more knowledge and experience in the industry. What differentiates them from insurance agents is that they assess the property thoroughly and craft the right coverage to protect all your bases. An insurance brokerage firm also relies greatly on its reputation thus, certain standards must be met.
Which One Works Best For You
When it comes to residential strata insurance, the best recourse is to choose an insurance broker. Be reminded that such insurance coverage will independently deliver the protection you and your co-owners of the “shared” facility. While many individuals will recommend picking insurance brokers over agents as the former will help dig deeper into your needs and meticulously determine what policy will work best for your residential strata, it is still imperative to consult with the body corporate of the said property. If not satisfied with the current insurance coverage chosen by the body corporate, acquiring another policy on top of that from a reliable insurance broker will ultimately keep your peace of mind intact.
Looking for the right residential strata insurance coverage? Schedule a consultation with Landlord Insurance HQ by calling 1300 815 344 or request a quote online now! We can also tailor an insurance portfolio to satisfy your property’s unique requirements.