Streamlining New Home Closings with Embedded Insurance
In the world of residential new construction, the journey from blueprints to closing can be fraught with complexities, especially when it comes to ensuring that a new home is adequately insured.
Traditionally, homebuyers have had to independently navigate a labyrinth of insurance options, often leading to confusion and closing delays. However, a new trend is emerging in the form of embedded insurance solutions, particularly beneficial for homebuilders and homebuyers alike.
What is Embedded Insurance?
Embedded insurance integrates seamlessly into the purchasing process of a product or service, eliminating the need for separate transactions.
In the homebuilding context, embedded insurance involves builders partnering with insurers to offer coverage directly at the point of sale, simplifying and expediting the closing process.
Benefits for Homebuilders
- Streamlined Customer Experience: Builders enhance the overall customer experience by offering insurance as part of the home purchase package. Homeowners appreciate the convenience of securing insurance without navigating multiple vendors.
- Reduced Administrative Burden: Handling insurance paperwork can be cumbersome for both builders and buyers. Embedded solutions streamline administrative tasks, allowing builders to focus more on customer satisfaction.
- Enhanced Sales Conversion: Simplifying the closing process can accelerate sales cycles and reduce closing delays. Buyers are more likely to commit when presented with a comprehensive package that includes insurance, potentially reducing the time between contract signing and closing.
Benefits for Homebuyers
- Personalized Quotes: Embedded insurance provides personalized quotes tailored to the specific property, ensuring accurate pricing based on factors like location, property value, and coverage preferences.
- Affordability: By integrating insurance options directly into the home buying process, embedded insurance can offer competitive pricing and discounts on new homes that may not be available through traditional channels and could save homeowners as much as $900*.
- Convenience: Homebuyers can easily select the best price and coverage from multiple carriers during the home purchasing process, eliminating the need for separate research and applications, saving time and effort.
Successful Partnerships in Action
In 2019, Hippo teamed up with Lennar, one of the largest homebuilders in the U.S., to offer comprehensive coverage for new homeowners. This collaboration simplifies the insurance process, providing peace of mind alongside the keys to a new home. In 2022, Hippo was the chosen insurer for 75% of Lennar's new homes sold.
Over the past five years, Hippo has helped to facilitate over 200,000 new home closings nationwide and is now doubling down on embedded insurance to improve access to insurance for customers purchasing new homes.
Looking Ahead
As the demand for streamlined consumer experiences grows, embedded insurance solutions will likely become a standard homebuilding industry offering. These partnerships benefit builders and insurers and enhance homeowners' overall satisfaction. By integrating insurance seamlessly into the homebuying journey, builders can differentiate themselves in a competitive market while providing added value to their customers.
Embedded insurance solutions represent a significant evolution in how homes are purchased and protected. By simplifying the insurance process, homebuilders can focus on what matters most—delivering quality homes and exceptional customer service.
As this trend continues to gain momentum, both builders and homeowners can look forward to a future where the closing process is as seamless as possible, setting a new standard of excellence in the real estate industry and paving the way for a more efficient and customer-centric homebuying experience.
Interested in Learning More?
If you’re a builder looking to enhance your offerings and streamline the closing process, let’s work together to deliver embedded insurance solutions for your new homebuyers.
Disclaimer
© 2024 Hippo Builder Insurance Agency, all rights reserved. Hippo Builder Insurance Agency LLC (“HBIA”) is a licensed property casualty insurance agency in all states in which products are offered. Any estimated premium savings are based on the application of discounts which are subject to availability and qualification.
* Based on the average premium for a new construction home policy vs. a standard home insurance policy through Hippo Insurance Services.
