Selecting the Right Broker for Your Assets and Goals, and How Your Wealth Advisors Can Play a Part

Insurance agent or insurance broker? What’s the difference and do we need both? And how does your wealth advisor or family office fit into this? If it feels complicated, you’re not alone.

This article attempts to address some of these complexities as well as explain the symbiotic relationship between insurance brokers and wealth advisors that may be beneficial to tap into.    

Insurance Agents vs. Insurance Brokers, and How to Find Someone Who Can Meet Your Needs

Insurance agents are employed by a single company, and while they can find you a policy, they’ll only do so within their employer’s collection of offerings. Insurance brokers represent their customers—you—and shop around at different companies to find you a series of quotes and befitting policies. We recommend our clients work with brokers.

Imagine that you’ve built your dream beach home. Your property and casualty insurance—when sourced and purchased thoughtfully—should ideally act as shield that protects it against destructive weather patterns. Selecting a reliable broker is a crucial part of both securing solid coverage and making the right decisions related to that coverage.

Here are four characteristics of a good insurance broker:

  1. When choosing an insurance broker, consider their expertise, reputation, responsiveness, their ability to customize coverage, and think outside of the box. You need someone who listens to you, understands your needs, explains options clearly, and supports you when your assets are damaged.
  2. A good broker’s role is to navigate many different insurance companies and to ensure your coverage aligns with your unique circumstances. This means breaking down complex terms, explaining policy options offered by different insurance companies, and guiding you towards informed decisions.
  3. Your insurance broker should bring creative thinking and solutions to the table as they help you implement mitigation measures that reduce insurance costs. For example, installing features like hurricane shutters, reinforced roofing, and impact-resistant windows are ways to get discounts on your insurance premiums.
  4. Your broker should communicate clearly, in simple terms, and have a strong track record of executing in an event of a claim. The latter is probably the most important, as that is the main reason, of course, you are seeking insurance in the first place. You want to be compensated should damage or a loss occur.

How Wealth Advisors Join Forces with Insurance Brokers: The Power of Partnership

So, what does your wealth advisor have to do with any of this? Your advisor should serve as your trusted ally in helping you navigate the complexities of managing all aspects of your wealth. The partnership between your wealth advisor and insurance broker is one part of a more holistic approach to your financial wellbeing. 

Your financial advisor knows you well, and a such, can bring a laser focus on your goals and financial situation to the conversation. Just as your advisor tailors your investment strategy, by coordinating with an insurance broker, your advisor and insurance broker can assist in addressing your specific needs. And if unexpected events do happen, your advisor and insurance broker are there to support you. Whether it’s a home-flood related risk or a liability concern, their alignment means you are not alone should challenges arise.

Navigating insurance involves understanding the risks, securing appropriate coverage, and taking steps to mitigate potential damages. Having of a good broker and your wealth advisor by your side is a big step in the right direction to protecting your assets. So, go ahead, ask your advisor for recommendations, choose your insurance broker wisely, and continue to stay curious and informed!

If your wealth advisor isn’t quarterbacking these types of conversations for and with you, we’d value the opportunity to introduce ourselves and tell you how we can help.