A broker will help you avoid insurance pitfalls

Business Day reports:

Like any other investment, whether it is stocks or properties or buying of assets, basic knowledge is necessary for a smooth deal. Where the basic knowledge is lacking, it is always advisable that you get an expert to lead you in the deal.

Insurance more than a number of these other investments, is technical in nature requiring that somebody going into it understand the secrets for effective insurance. Otherwise, use the broker because ignorance is not an excuse in law and worst is when someone has made loss, and there is a claim.

To avoid all of these cock and bull stories, take the services of an insurance brokers who by virtue of their profession understand the deal and can assist you to successfully undertake an insurance cover.

Just like an accountant or lawyer who provides you with professional advice based on years of training and experience, a qualified broker can do the same with your insurance.

One interesting thing about using the services of a broker is the fact that you, the insured, are not going to pay the broker for his services, but is paid by the underwriting company that gets the business, says Tope Adaramola, spokesman Nigerian council of registered Insurance Brokers.

Adaramola said using the insurance broker can save you money, stress and time which would have been spent moving about to secure the insurance cover, and at the same time you are opportune to get professional advice on the right polices that best suit your situation.

Like the experts put it, when arranging insurance, many people take shortcuts without seeking proper advice, understanding the fine print or considering whether they are getting value for money. Often, they end up with cover they don’t need and – even worse – without the cover they really need.

Dennis Nnorom, managing director, Pinnacle Insurance Brokers Limited, informs that the brokers have access to lots of different policies because they deal with a wide range of insurance companies and sometimes other types of underwriters as well. A broker will be aware of the benefits, exclusions and costs of competing policies on the market. They will also help arrange and place cover and can often provide advice on how to make the most of your insurance budget.

Using a broker doesn’t necessarily cost more. Often, it costs less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf. A broker will also explain your policy and any special situations you need to watch out for.  Furthermore, a broker is obliged to advise you of fees charged for services provided to you.

For Nnorom, it pays to use the services of a broker to avoid ‘had I known.’