Independent home insurance agency with an office

Insurers pay your commission. The customers are local homeowners, new buyers, landlords and small property owners, who pay premiums to the insurer.

You earn commission on new policies and renewals, and sometimes bonuses from carriers. Selling several lines such as auto or umbrella alongside home policies increases income per client.

• Sales and relationship building
• Knowing policy terms and coverage gaps
• Running an office and managing staff
• Local marketing and networking

• Check your state's licensing for both you and the agency, plus continuing education rules
• Errors and omissions (E&O) insurance and general liability insurance are usually expected, so verify what carriers require
• Carriers may have minimum production or underwriting requirements to keep an appointment
• Plan for rent and software costs while your renewal income is still small
• If you hire staff, they may need their own licenses and you will need workers' compensation insurance, so check state rules
• Protect client data and follow your state's privacy and record-keeping rules

Startup costs are typically around $8,000 to $30,000, depending on your office rent, software, licensing fees, insurance and marketing. These are estimates, so plan for rent and software costs while your renewal income is still small.

Monthly revenue is typically around $3,000 to $15,000, depending on the carriers you represent, your commission terms and how many clients you build up. The idea assumes at least 35 hours a week. These are estimates, and revenue is not profit.

Check your state's licensing for both you and the agency, plus continuing education rules. Check carrier requirements for errors and omissions and general liability insurance, and any minimum production to keep an appointment. If you hire, check staff licensing, workers' compensation, client data privacy and record-keeping rules.