Direct Writer or Independent Insurance Agent?
When you buy insurance to protect your investment property, there are two distribution models you can choose from Direct Writer or an Independent insurance agent.
The agent who works for a Direct Writer is an employee of the company and represents one company. If your property does not fit the risk profile they like, you will have to seek an alternate solution. Examples of companies that use the Direct Writer model: are Allstate, American Family, Country Company, Farmers, and State Farm. Direct Writers primarily write Personal Lines insurance, Home, Auto, Boat, and Umbrella. As of 2016-2017, Direct Writers wrote nearly 65% of all Personal Lines insurance.
Your Independent Insurance Agent represents you, the client, first. They work to match your risk with the best carrier option available through the carriers and programs they represent. Each independent insurance agency contracts with the insurance companies, managing general agents, and wholesalers they represent. As of 2016 -2017, Independent Agents write premiums.
The frustration of a property investor and insurance agent
Buying Insurance Online sounds easy, just type, click and enter your credit card. Right?
Recently I was shopping for insurance for a 12-unit multifamily rental property I own. While I am an insurance agent, and usually buy from myself, the current hard market was making it difficult to find a reasonable solution for my upcoming renewal. As a precaution, I decided to go online to see if I could buy insurance online better than what I could find myself.