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While on the floor it seems the broker represents the client (not the insurance coverage company), and usually counsels the buyer on applicable coverage and policy limitations, in the overwhelming majority of cases a dealer’s compensation comes within the form of a fee as a percentage of the insurance coverage premium, making a battle of interest in that the broker’s financial interest is tilted towards encouraging an insured to purchase more insurance coverage than is perhaps essential at a higher price.
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Thus, high prices aren’t an indication of greed” on the part of homeowners – costs merely replicate the shortage of beach-entrance homes, that there usually are not enough seashore-front houses to fulfill all of us. Different economies ration these houses otherwise – in a feudal economic system, the lord would ration the homes by fiat, giving homes to certain individuals.