On the surface, it may seem like purchasing a homeowners policy from an insurance broker rather than direct from the insurer is the least expensive way to go, but there are other considerations that need to be considered before you can know for certain which choice is the least expensive one.
If you already have insurance policies written by an insurance company, you can probably save money on purchasing your home insurance from the same company. Compare the cost of purchasing a policy with your existing insurer, including any discounts you are eligible for, against the cost of a new policy purchased through an insurance broker.
Comparing rates will be important. Use the policy comparison form on this website to see what your policy would cost from several different insurance companies. Keep in mind that the lowest rate may not always mean the best coverage, and be sure to check the financial rating of the insurance company before you purchase the policy. Purchasing a low-cost homeowners policy will not benefit you if the company goes out of business and takes your premium payments with it.
In most cases, brokers offer lower rates. Since the broker is associated with multiple insurance underwriters, you are able to pick the policy which meets your needs and your budget. Unlike dedicated insurance agents, the broker may be more inclined to help you shop for lower rates or arrange the policy to save you the most. This is because brokers rely on their customers to earn a living, where a dedicated agent is being paid by the insurer.
The bottom line is that to get cheap homeowners insurance, you need to compare rates from multiple companies to see who offers the best deal.