Master-Planned Communities: The Perfect Fit for Embedded Insurance

In a recent Builder article, Vincent Salandro outlined why master-planned communities (MPCs) are often resilient to market challenges. With thoughtfully integrated environments, desirable amenities, and a strong sense of community, MPCs consistently attract a diverse range of buyers. However, despite these advantages, one persistent challenge remains: securing home insurance for newly built homes. 

Insurance companies often struggle to generate accurate quotes in new communities because addresses may not yet be recognized by USPS or other data providers. This can result in frustrated homebuyers unable to secure coverage before closing.

MPC developers and builders, with their access to detailed community and property data, are ideal partners for embedded home insurance solutions, which help alleviate this stress for homebuyers. 

What is Embedded Insurance?

Embedded insurance integrates insurance directly into the purchase of a product—like a home—streamlining the entire process. Instead of requiring buyers to navigate a separate insurance application, they receive tailored coverage options as part of their home purchase, often with enhanced underwriting based on specific property data. 

By embedding insurance directly into the home-buying experience, builders and developers can make the process faster and easier for their buyers. If you're new to this concept, check out our blog post on how embedded insurance transforms the home-buying experience.

Addressing Insurance Challenges for New Homes 

Securing insurance for newly built homes in MPCs can be tricky due to unrecognized addresses. Traditional insurers rely on third-party data sources like USPS to validate addresses before generating quotes. In new communities, these addresses often aren’t recognized yet, leading to frustration for buyers who struggle to get coverage. 

This is one area where Hippo stands apart. With experience insuring new homes in MPCs, Hippo bypasses these challenges by leveraging builder data to generate accurate quotes—without waiting for USPS validation.  

By working directly with homebuilders, we utilize detailed community plans, construction data, and risk assessments to provide timely and accurate coverage options for homeowners, ensuring they’re protected from day one. 

Streamlining the Home Purchase Process 

One of the key advantages of embedded insurance is its ability to simplify the home-buying process. In many MPCs, builders work closely with insurance providers like Hippo to integrate home insurance directly into the transaction, eliminating the need for buyers to shop for separate policies. 

This integrated process reduces the administrative burden on buyers, allowing for smoother, faster closings. Learn more about how Hippo streamlines the process for new homeowners and loan officers in our blog post on simplifying the mortgage and insurance process. 

Safer, Data-Driven Communities

MPCs are often seen as safer environments due to their thoughtful designs and risk-mitigating features. Many MPCs incorporate elevated foundations, reinforced structures, advanced drainage systems, and defensible spaces to reduce risks like flooding and wildfires. 

In fact, CBS News reported that communities focusing on wildfire mitigation have seen significant reductions in home insurance premiums, such as those in Colorado. These proactive risk-reduction measures can make MPCs more resilient, offering peace of mind to homeowners and potentially lowering insurance costs. 

Builders and developers in MPCs have access to comprehensive data about their properties, including risk mitigation efforts and infrastructure design. Hippo leverages this data to create customized policies with affordable premiums that reflect the safer, lower-risk nature of these homes.