The Intermediary – October 2025 - Flipbook - Page 67
P RO T E C T I O N
Opinion
The smarter,
safer choice
I
n today’s competitive market,
many mortgage brokers may
be looking to diversify their
services by offering add-ons
like insurance directly to their
clients. On the surface, this
seems a convenient solution and an
additional revenue stream. However,
when mortgage brokers handle
home insurance themselves, without
referring clients, they may be opening
the door to serious risk for themselves.
From compliance breaches to legal
exposure and reputational damage,
there are pitfalls that can arise when
insurance isn’t le to focused experts.
That’s why working with a specialist
provider such as Safe & Secure Home
Insurance is not just safer, it’s smarter
business. When referring is quick,
easy, paperwork-free and compliancelight, it makes sense to refer.
Home insurance is a regulated
financial product with strict
compliance obligations, including
record-keeping, fair treatment
of customers, and full disclosure
of commissions. Failing to meet
these obligations can easily lead to
regulatory scrutiny.
Mortgage brokers are trained in
lending products; however, that
doesn’t necessarily translate to
buildings and contents insurance
expertise. Without a deep
understanding of home insurance
underwriting, exclusions, and policy
structures, brokers may inadvertently
set up unsuitable cover.
This can have consequences for
the broker as well as the client. If a
client suffers a fire, flood, or burglary
and finds out they weren’t properly
covered, the broker could be liable,
and the client’s loss may lead to
reputational damage and possible
legal action.
Safe&Secure Home Insurance
recently saw an example of this,
when a mortgage broker sold a
policy themselves and a subsequent
claim made by their client was then
challenged by the insurance company.
As the broker had not saved the call
recordings with the customer, it
was not possible to evidence what
was discussed at the point of sale.
Consequently, the broker has to
potentially cover the cost of the claim
and associated costs.
Safety in numbers: Referral partnerships allow brokers to safeguard their professional standing
STEPHANIE DUNKLEY
is development director at
Safe&Secure Home Insurance
Without the knowledge, tools,
systems, and wide range of insurer
panels access, it’s easy to overlook risk
factors like properties in flood-prone
areas, listed buildings and clients with
unusual or high-value possessions.
Rather than trying to do it all inhouse with oen limited number of
panels to choose from, many mortgage
brokers choose to partner with Safe
& Secure Home Insurance, being a
specialist provider that handles home
insurance with expertise.
Appropriate route
This gives both brokers and clients
peace of mind, and can identify when
home insurance falls outside the
normal standard cover and find the
appropriate route for the customer.
Clients receive a policy tailored to
their exact needs, not a generic off-theshelf product.
The referral process is simple,
transparent, and designed to protect
the broker-client relationship. Brokers
can focus on mortgages, while Safe
& Secure handles the buildings and
contents insurance, keeping everyone
within their expertise.
While it may be tempting for
mortgage brokers to offer home
insurance themselves, the risks
outweigh the rewards, especially
when it comes to compliance, liability,
and client outcomes. By partnering
with a trusted specialist like Safe &
Secure Home Insurance, brokers
can provide beer protection for
their clients and safeguard their own
professional standing.
In a market where trust and
reputation are everything, sticking
to your core expertise and referring
to the right partners is not just
safer, but it’s the hallmark of a
true professional. ●
October 2025 | The Intermediary
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