As homebuilders brace for a potential surge in new-home demand — driven by the Federal Reserve’s rate cut and modest declines in mortgage rates and a known torrent of demographic household-, income-, and family-formation tailwinds — the need for operational efficiency is critical.

The homebuying journey has already become more complex due to rising costs, and the added unpredictability of home insurance is now a critical factor.

Even as interest rates hint at a more favorable homebuying environment, other factors, particularly climate-related risks, undermine affordability.
According to The New York Times, home insurance premiums have increased by 33% across the U.S. between 2020 and 2023. In some coastal areas, the rise has been even more extreme, with insurers filing for rate increases of up to 42% in states like North Carolina, already battered by recent hurricanes.

Recent natural disasters, such as Hurricanes Helene and Milton, have upended the home insurance market. According to Axios, Hurricane Helene alone caused $250 billion in damages, with $47 billion directly impacting homeowners. Many of these homeowners are uninsured or underinsured for flood damage, forcing them to rely on FEMA loans, increasing their debt burden. The devastation wrought by these storms is magnified in places like Florida, where the average insurance payment has surged by 86% since 2019 — far outpacing even the national average increase of 52%.

The New York Times reports that insurers, facing unprecedented losses, have begun withdrawing from high-risk markets such as Florida, Texas, and the Carolinas, leaving homebuyers with fewer coverage options and significantly higher premiums in these areas. In North Carolina, for example, insurers have requested rate increases of up to 42%, citing rising material and labor costs driven by successive hurricanes. These soaring premiums further stretch household budgets and make homeownership more financially precarious.

Westwood Insurance Agency’s ability to offer competitive, locked-in premiums early in the buying process is vital in such an environment. As Arvin Darilag, Vice President of Business Development for Westwood, explains:

When we send homebuyers a quote, we’re confident it’s likely the best pricing they’ll find. So not only do they save time, but they get peace of mind they got the coverage they need at a good price."

This level of service is critical when insurance availability is uncertain and homebuyers face escalating costs. Westwood’s approach ensures that new-home buyers don’t face the same last-minute surprises that are becoming too common for homeowners in disaster-prone regions.

Efficiency in the Face of Growing Market Volatility

For homebuilders, the key to navigating this uncertain landscape is operational efficiency. While the potential for lower mortgage rates could bring new buyers into the market, the unpredictability of home insurance remains a significant hurdle.

The burden of these rising costs has shifted onto homebuyers, who are now struggling to find affordable insurance coverage in markets particularly vulnerable to climate risks. In Florida, for example, uninsured homes are becoming terrible investments – as Axios notes – and private insurers are increasingly opting to leave the state altogether. This volatility makes it more challenging for homebuilders to offer a seamless homebuying experience, especially when insurance becomes a bottleneck.

This is where Westwood’s streamlined, tech-driven insurance platform becomes invaluable. By offering real-time quotes and eliminating last-minute complications, Westwood allows builders to close sales without the delays often caused by unpredictable insurance costs. Darilag explains:

With Westwood’s process, having quotes available from day one means there won’t be any surprises in the numbers at the last minute when they’re trying to close the loan."

In this environment, ensuring that insurance is taken care of early in the process provides a competitive advantage for builders, who can offer buyers the security of knowing their home is properly insured without facing unforeseen costs at the closing table.

Westwood’s Role in Streamlining the Insurance Process

As homebuilders brace for what could be a surge in new-home demand, Westwood Insurance Agency’s role in speeding up the insurance process is more crucial than ever. The company’s technology-driven platform offers real-time insurance quotes and locks in premiums early, ensuring that buyers aren’t delayed or overwhelmed by insurance complexities during high-demand periods. This system helps eliminate one of the most common pain points for buyers—obtaining last-minute insurance coverage—and allows builders to maintain their closing timelines.
Darilag highlights how Westwood’s platform simplifies the process:

Homebuyers don’t have to worry about answering a multitude of questions in order to get a quote. They can simply call Westwood and say, ‘I’m purchasing a home at this community,’ and within 30 seconds we can tell them exactly how much the insurance for that home is going to cost."

Additionally, Westwood’s partnerships with multiple A-rated carriers ensure that even buyers in high-risk, disaster-prone markets can find coverage. This flexibility is key for homebuilders working in areas like Florida and the Carolinas, where the threat of natural disasters and the withdrawal of insurers from the market have made securing insurance more difficult.

If someone is purchasing a home in a hard-to-insure market, we almost always have an insurance company available to write in that community," Darilag explains, underscoring the importance of having multiple options for buyers navigating a volatile insurance landscape. “We have solutions for just about every market, even the toughest.”

New Realities of Home Insurance and Affordability

As mortgage rates begin to soften and new-home demand picks up, the complexities surrounding home insurance cannot be ignored. Rising premiums, driven by climate-related risks, are adding a new layer of financial strain on homebuyers already stretched by high prices and cost-of-living pressures. In this context, having a reliable, technology-driven solution like Westwood Insurance Agency is essential for homebuilders looking to stay competitive.

Westwood’s ability to lock in competitive premiums early, provide real-time quotes, and offer multiple coverage options ensures that the insurance process doesn’t become a stumbling block for homebuyers. For homebuilders, this means smoother closings, fewer delays, and, ultimately, a better experience for buyers in today’s unpredictable market.