It’s no longer just Florida, California and Louisiana.

Now many more states have joined these three as home insurance carriers raise premiums, reduce coverage or pull out of the state. Major media reports, like this recent one in the New York Times, explains why it’s no longer business as usual for home builders and home buyers in Iowa, Arkansas, Ohio, Utah and Washington. And, according to the NYT, the trend will only accelerate as extreme weather rapidly becomes the new normal.

For builders and growing numbers of home buyers, the news is no secret. Rather than risk a delayed or lost closing, customer disappointment and reputation damage in social media, word of mouth and other channels, many home builders rely on several new strategies, including:

• Locations that minimize flood, earthquake and hurricane risk
• Enhanced construction resiliency with fire resistive materials
• Water sensors and automatic shut-off valves that mitigate water damage, the most common risk

And one more … an embedded home insurance offer at contract signing.

Eliminate Closing Risk

“Don’t risk the close on missing evidence of insurance,” advises Christi Burkhardt, Vice President of National Sales and Growth for Westwood Insurance Agency, an experienced insurance provider which offers home insurance coverage across 99% of all communities built by builders on the Builder 100 list.

“It makes sense to get insurance out of the way as early as possible. It eliminates home buyer worry over a matter that’s gaining wide national attention. It also shows how responsive and proactive the builder is. It’s a smart win-win,” Burkhardt says.

“Early pre-approval is especially important for first-time home buyers,” adds Kimberlee Furcht, Westwood’s Vice President, Executive Account Manager. “A move-up buyer may already have an existing agent relationship. The first-time buyer doesn’t and is likely thinking, ‘What happens next?’”

One and Done

For home builders, adding embedded insurance is surprisingly straightforward and easy. There’s no process disruption, administrative heavy lift or licensing/certifications of any kind. If the home buyer elects to go with the embedded offer, the policy is typically confirmed right away and the buyer can check insurance off of their list.

“Embedded insurance is such a convenience,” notes Burkhardt. “For the buyer, there’s no running around trying to figure out roof type, construction system or the distance to nearest fire hydrant. Those conditions are built-in to the embedded quote. For the builder, it’s a one-and-done step. No surprises. Just one less thing to worry about.”

6 Key Factors

As you consider a winning home insurance strategy, keep in mind these six factors in selecting an embedded home insurance partner:

1. Years of service specifically to the home building industry
2. Availability of coverage across virtually all states, all communities, including Florida, California and Louisiana
3. Competitively priced home insurance policies
4. Online portals creating a fully digital process for a fast and seamless insurance experience with friendly, live customer service attention as well as online claim service access and convenience
5. Direct collaboration with the builder to pre-rate the home ahead of time, creating a quick and transparent insurance process
6. Access to dozens of insurance companies, providing competitive options for home buyers

No home builder should put a closing at risk over home insurance uncertainty. Isn’t it time you explored an embedded home insurance option?

Learn more about how to reduce home insurance concerns and simplify a more confident closing process.