The acceleration of natural disasters is causing major disruptions in the home insurance industry. Not only can it be hard to secure home insurance in certain areas, but it may also be expensive. Fortunately, embedding insurance for buyers right at the beginning of the home buying process can help relieve availability and affordability concerns. By providing this easy and dependable home insurance solution, builders can offer peace of mind while building trust all the way up to closing.

Unstable Climate Impacts on Home Insurance

The number of natural weather disasters causing damages of more than a billion dollars is increasing, with 2023 setting the highest amount on record at 28 events tallying $92.9 billion. This rise in damage is a big factor in why the average property insurance premium has gone up more than 30 percent since 2020 and why costs vary widely by location, primarily higher in areas prone to disasters such as hurricanes and wildfires. If present trends continue as predicted, home insurance premiums may keep climbing and coverage may become even harder to obtain in risky locations. This uncertainty is causing a lot of concern among potential homebuyers. That’s where embedded home insurance comes in.

Embedded Insurance: A Reliable Home Insurance Solution

Builders who embed insurance are able to offer a competitive quote to homebuyers during the signing of the purchase agreement. At a time when insurance is becoming a key factor in the purchase decision, this alleviates any concerns about being able to secure home insurance. It also provides the total insurance cost up front, allowing customers to figure out exactly how much they’ll need for their monthly mortgage payment.

So how can builders incorporate an embedded insurance process into closing? It’s surprisingly simple and straightforward and it starts with finding an experienced home insurance partner. An agency with the right technology can link to a builder’s systems and access all the information they need to pre-underwrite the home and deliver an instant quote. Builder partners who work with Westwood Insurance Agency understand just how valuable this is, as stated by Michelle Byrge, Vice President of Corporate Sales and Marketing at Landsea Homes.

The market is always going to dictate location and pricing, but it’s our job as a home builder to create the best experience and value for homebuyers in all of our locations. That’s why we partner with other industry leaders such as Westwood for the insurance opportunity,” said Byrge.

Landsea Homes, which signed with Westwood earlier this year, has been offering embedded insurance for several months now. This is something Byrge says has been very beneficial for the growing company.

We want homebuyers to feel confident we’ll take care of their needs no matter what the market is throwing at us, so we really focus on the livability of our communities and homes to create the best value,” said Byrge. “Having the combination of mortgage, title, and insurance all together allows us to maintain strong communication throughout each home purchase and offer buyers the most affordable options.” 

The Timing Couldn’t be Better

Embedded insurance is a streamlined process that saves time for both builders and their customers and takes care of the insurance step up front, providing confidence and certainty in this unstable market. With all that’s going on in the news surrounding extreme weather damage and claims, it makes sense for builders to take the initiative and offer this simple and convenient insurance solution. It's a decision Landsea Homes is glad they made.

Integrating insurance has been an extremely smooth transition that Landsea Homes as the builder has definitely been able to leverage, especially in this competitive market,” Byrge explained. “Our goal is to make the process for homebuyers as easy and satisfactory as possible and being able to offer a competitive insurance quote is a great way to eliminate any worries buyers may have about coverage.”

The embedded home insurance process is a service that Westwood has been offering for decades.

Available. Accessible. Affordable.

Founded by a home builder more than 70 years ago, Westwood works with builders to seamlessly integrate insurance early in the homebuying process. No matter where homes are located, a partnership with Westwood helps builders close on time, every time and provides buyers quotes with an average savings of $200 per year. Builder partners understand just how valuable this is, as Byrge confirms.

We’re committed to the customer experience from the very first time we meet a prospect, and we’re proud that a well-respected and experienced company like Westwood wants to partner with us so that we’re able to provide customers the insurance coverage they want. It’s a win-win relationship that will last for years to come.” 

To learn more about a partnership with Westwood, visit westwoodinsurance.com/partners/builders.

For additional information about the value of embedded insurance in the face of escalating climate threats, read Stability in Uncertainty: Helping Builders Close on Time with Embedded Home Insurance Solutions.