How much can you typically make on a new home owner insurance policy both for refinance or purchase of a home?? How much do you make on renewal of the policy??
I am not asking about life insurance, I am asking about a home policy.
Is it 15 to 20% of the coverage amount or the policy cost?
Best reply by deep5223:
It sounds like you are asking about life insurance for home owners, because home owners insurance pays the same regardless if it is new or refinance. It is based on the cost of the home and should be at least 80% of the value. You won’t make much and the renewal is less.
Read the original question on Yahoo! site
Home Insurance Agents ?$?
If it’s a STANDARD homeowners policy, HO3 form, between 15% and 20%, including renewals, UNLESS you use the company service center, where they take 3% to 5% to service the policy for you.
The refi doesn’t matter – it’s when the policy is taken out. You don’t take out a new policy for a refi – you just change the one you have.
It is 15% to 20% of the annual premium. So, if the premium is $500 per year & the commission is 20% you get $100 (from the company on your commission statement). On a refinance, you just change the mortgage clause on the current policy & the premium will not change & the commission will not change. Remember, this commission is for a full year, so you still have to take every phone call, every change to the policy, every question, etc for the same $100. You do not make any more if the insured calls a lot or doesn’t call at all. But, if the insured cancels half way through the policy, you have to pay back half of the commission to the company.