The Hippo New Homes Insights Report
When choosing homeowner’s insurance, new construction buyers and owners of existing homes take surprisingly different paths.
Our latest survey of over 2,000 U.S. homeowners reveals that new construction homeowners are likely to trust real estate agents and home builders for insurance recommendations. In contrast, owners of existing homes are more likely to lean on established relationships with insurance agents or explore a wider range of options.
Despite these differences, one thing is clear: Homeowners are cautious, with many comparing multiple providers before making their final decision. Below, we dive into these findings as we explore the evolving home insurance landscape.
Key takeaways
- Real estate agents and builders play a crucial role in new construction insurance decisions, with 53% of new construction homeowners relying on real estate agents and 18% trusting their builder’s recommendation.
- New construction homeowners are willing to reinvest insurance savings into builder upgrades or customizations, with 92% indicating they would use savings for home additions or enhancements—creating a clear benefit for builders.
- New home builders have a unique opportunity to add value for their customers by partnering with providers like Hippo. Hippo specializes in new construction insurance, streamlining the process for homebuilders. Hippo and its carrier partners can offer policies for new homes with premiums as much as 69% lower in California, 42% lower in Florida, and 56% lower in Texas than policies for an existing home.
The dominant force driving how nearly half of homebuyers choose insurance providers
Our survey reveals that the most common source homeowners turn to when choosing a home insurance provider is their real estate agent, with 42% of all surveyed homeowners relying on them for guidance.
Only 6% of respondents used online searches or advertisements to find their provider, making it the least popular choice among surveyed options. This could highlight that trust and human connection often outweigh the convenience of the internet when selecting different types of homeowners insurance.
How builders influence home insurance choices
This data also highlights the powerful role builders play in the insurance decision process, particularly for new construction homeowners.
While many homeowners in this group also found their provider through a real estate agent, the second highest source of information was a recommendation from their builder, with 18% selecting this option.
These findings could indicate that many new homebuyers view builders and as trusted advisors, helping them make well-rounded decisions as part of the homebuying experience.
Meanwhile, buyers of existing homes seem to prefer pre-existing relationships with insurance agents over other sources of information. Approximately 36% said they found their home insurance provider through recommendations from their insurance agent—the most popular answer option for owners of existing homes.
This suggests that many homeowners feel more comfortable making insurance decisions based on personal referrals from trusted sources.
How thoroughly do homebuyers research insurance providers?
Despite their differing preferences on where to obtain recommendations, owners of new construction homes and owners of existing homes mostly demonstrate a cautious approach when selecting an insurance provider.
Over a third (36%) of all survey respondents compared three different insurance options before making their final decision. This indicates that while recommendations play a major role in choosing a home insurance provider, homeowners are still mindful of exploring alternatives to ensure they get the best deal.
However, our data also indicates that owners of new construction homes may do a little more research when choosing a provider. For instance, only 3% of new construction homeowners said they did not compare providers versus 16% of respondents from the existing homes group.
While the majority of homeowners from both groups practice a cautious approach to selecting insurance providers, owners of new construction homes may be even more diligent in their research.
We also asked new construction homeowners which factors influenced their insurance decisions the most, allowing respondents to select all the options that applied to them. Here’s what our data revealed:
- Brand reputation (45%)
- Total premium (44%)
- Recommendations (43%)
- Discounts (42%)
- Coverage options (42%)
Overall, the differences are minimal. This could indicate owners of newly built homes consider multiple factors when choosing an insurance provider and that homeowners are looking for more from their policies.
Homeowners can save on new construction insurance—here’s how they’d like to reinvest
We asked over 2,000 U.S. homeowners what they would do if they earned $900 in new construction insurance savings—and for some, this is more than a hypothetical question. Those looking to buy a newly built home could save up to $900 on new home insurance when using a provider with new home specific offerings, like Hippo. But how would they reinvest these savings?
The overwhelming majority of new construction homeowners (92%) reported they would use their savings to invest in home upgrades or additions. This includes 28% of homeowners who were interested in energy efficiency upgrades, like new windows or insulation, and 10% who were focused on exterior projects like adding a deck or patio. Comparatively, only 6% of respondents in this group indicated they’d use the savings to pay off another debt.
This could highlight new construction homeowners’ focus on customizing the home of their dreams. It may also suggest that higher insurance costs could limit how much people are willing to invest in their future homes since financial priorities would likely shift toward covering essential expenses over desired improvements.
A win-win for home builders and buyers
The insights from our survey reveal more than just how homeowners choose their insurance provider—they also highlight valuable opportunities for both builders and homeowners.
New construction homeowners being willing to reinvest insurance savings into upgrades highlights a new way for builders to promote these savings. Partnering with organizations like Hippo can further support this value by providing better access to plans tailored for new builds.
For homeowners, these partnerships mean potential cost savings and the opportunity to reinvest them into upgrades that maximize both the immediate and long-term benefits of investing in their home.
Interested in maximizing the value of your new construction home? Homeowners can learn more about home insurance basics and discover how Hippo insurance offerings can help protect their greatest asset.
Meanwhile, builders can learn more about partnering with Hippo to provide added value for their clients.
Methodology
This survey was conducted by SurveyMonkey Audience on behalf of Hippo Insurance Services on October 21, 2024. The results are based on 2,495 completed surveys. To qualify, respondents were screened to be U.S. homeowners who are over 18 years of age. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.
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