Master-Planned Communities: Perks, Costs, and Insurance Coverage

Aerial view of a master-planned community with new construction homes, streets, and landscaping visible.

Master-planned communities (MPCs) are taking neighborhood design into the modern age. Unlike traditional developments, where homes and amenities evolve over time, MPCs are built with a clear vision from day one. 

A key advantage of MPCs is their ability to deliver move-in-ready homes—an important factor for nearly a quarter of U.S. homeowners, according to our upcoming American Dream Homes survey. With thoughtfully planned communities, modern amenities, and turnkey properties, MPCs offer an experience that aligns with what many buyers want.

In this article, we’ll break down the pros and cons of MPCs, examine their impact on home insurance, and highlight examples of the most impressive master-planned communities from the past year.

Beyond housing: The appeal of MPCs

An MPC is a strategic, large-scale development designed for seamless living. They offer a balance of residential, commercial, and recreational spaces, delivering built-in features for homeowners, including: 

  • Resort-style pools
  • Spacious backyards
  • Fitness centers
  • Nature trails
  • On-site retail
  • Smart home infrastructure
  • Private security
  • Homeowners’ associations (HOAs)

For homebuilders, master-planned communities could offer greater stability than traditional developments. Their mix of housing types and long-term infrastructure investments make them more resilient to market shifts. That means fewer surprises and a more predictable return on investment.

Benefits and challenges of master-planned communities

Master-planned communities offer builders a unique opportunity to work within a structured, well-marketed development that attracts buyers through thoughtful design, shared amenities, and a strong community reputation. MPCs also foster buyer confidence since homeowners know what to expect in terms of property values, HOA standards, and neighborhood amenities, making homes easier to resell.

However, building in an MPC comes with trade-offs. Developers and builders must adapt to evolving buyer preferences and make strategic land decisions, especially as high lot prices impact affordability.

MPC BENEFITS

MPC CHALLENGES

More predictable investment returns, even in fluctuating markets.

Rising lot prices can impact affordability and profitability.

Amenities and design guidelines create a desirable living environment, attract buyers, increase demand, and reduce sales cycles.

Developers must stay ahead of trends to maintain appeal, especially in the early phases of the community.

Many MPCs prioritize climate resilient features (e.g., earthquake- or fire-resistant home designs) which can help reduce insurance claims and improve home longevity and value.

Large-scale MPCs can take years to complete, requiring builders to commit resources for extended periods.

Efficient land use and pre-planned utilities simplify development and reduce risk.

Builders must adhere to the MPC’s architectural and aesthetic standards.

Expanding upon these considerations, many MPCs are designed with built-in risk-reduction features that enhance community safety. This includes thoughtfully planned infrastructure to help minimize damage from extreme weather, including elevated roadways, underground utilities, or advanced stormwater management.

Strategically planned green spaces in MPCs can also help mitigate flooding, while modern building codes enhance structural durability. Together, these considerations can improve community resilience and may even lower the likelihood of insurance claims.

Best-selling master-planned communities of 2024

According to a 2025 report from John Burns Research and Consulting, the top 50 U.S. master-planned communities collectively sold 34,000 new homes. This showcases resilience during challenges like elevated mortgage rates and economic uncertainty. Here are the top 10 companies from this list: 

PROJECT NAME & LOCATION

DEVELOPER NAME

PROJECT SIZE

1. The Villages, FL

The Villages Development Company, LLC

35,000 acres

2. Lakewood Ranch, FL

Schroeder-Manatee Ranch, Inc.

33,000+ acres

3. Cadence, NV

LandWell Companies

2,200 acres

4. Sunterra, TX

Starwood Land

2,303 acres

5. Summerlin, NV

Howard Hughes Holdings, Inc.

22,500 acres

6. Wellen Park, FL

Wellen Park, LLLP

11,000 acres

7. Bridgeland, TX

Howard Hughes Holdings, Inc.

11,500 acres

8. SilverLeaf, FL

Hutson Companies

11,000 acres

9. Mirada, FL

Metro Development Group

2,000 acres

10. Babcock Ranch, FL

Kitson & Partners

18,000 acres

What did these companies do right? The same John Burns report found leading MPC developers excelled by implementing key strategies, including:

  • Embracing rate buydowns to attract buyers with lower payments. Along with closing cost contributions, some builders also reduced prices on standing inventory to help boost sales.
  • Securing a steadier lot supply and more predictable timelines to support consistent sales and deliveries.
  • Capitalizing on the lifestyle appeal of MPCs by incorporating high-quality amenities, schools, security, and a variety of housing options that cater to different buyer preferences.

Many of the top master-planned communities are located in traditionally harder-to-insure areas prone to hurricanes or other natural disasters. Despite these risks, their warmer climates and growing workforce help drive the high demand for homes in these regions.

By leveraging data on risk mitigation features and community infrastructure, organizations like Hippo provide homeowners in these MPCs with reliable, affordable insurance that protects against potential hazards.
U.S. map of the top 10 best-selling master-planned communities in 2024, with pins indicating each community's location.
U.S. map of the top 10 best-selling master-planned communities in 2024, with pins indicating each community's location.

Homeowners insurance for master-planned communities

Since many MPCs are new construction or located in difficult-to-insure areas, traditional insurance companies may lack the historical data or resources needed to assess risks properly. This can lead to inaccurate estimates, delays in securing coverage, and frustration for buyers trying to close on their homes.

Many MPCs also have homeowners’ associations that mandate specific coverage levels, including policies for shared community spaces or additional protections like flood insurance. Understanding these requirements upfront ensures buyers secure the right coverage while avoiding unexpected gaps down the line.

Given these unique considerations, embedded insurance solutions can help streamline the process—ensuring buyers get accurate coverage from day one.

With a proven track record of insuring homes in MPCs, Hippo uses builder community plans, construction data, and risk assessments to quickly and accurately generate insurance quotes. This reduces friction for buyers and gets coverage in place from day one. 

Next-gen protection for MPCs  

As master-planned communities continue to thrive, Hippo supports their growth with innovative insurance solutions that drive success. Explore how we can help you streamline the buying process and protect your next project.

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