The National Association of Realtors (NAR) recently reported 13% of new-home closings are delayed, costing home builders untold thousands of dollars in unplanned expenses.
Eliminating friction points at closing is an imperative for all builders. No builder should have to sacrifice margin to cover construction loan interest, builder’s risk insurance, frozen capital, and other expenses.
Consider home insurance, for example. Insurance availability questions of a couple years ago have largely diminished. Yet worries remain over closing reliability: Changing home insurance processes can impact a closing date. In today’s market, closing certainty wins.
Insurance underwriting requirements have evolved in recent years, even with new construction. For example, insurance carriers may look more closely at local climate conditions, zoning, a home buyer’s insurance history and other potential risks. That takes time.
Another factor in play is how surplus lines carriers now fill the market gaps created by admitted carriers adjusting their underwriting guidelines in many catastrophe-prone states. Surplus lines carriers have more flexibility to periodically change rates, terms, and deductibles. This flexibility doesn’t prevent a closing outright, but it can add friction late in the process—for example, needing updated signatures or carrier permission to issue when a rate increases shortly before closing.
“The sooner the customer reviews their insurance options, the better,” advises Christi Burkhardt, vice president, national sales and growth at Westwood Insurance Agency. Westwood specializes in new construction home insurance for many of the nation’s top home builders, quoting more than 75% of newly constructed U.S. homes.
Burkhardt advises builders to observe three rules to push projects across the finish line on time, every time:
1. Seize the Offensive
Why not embed the insurance piece upfront, right at contact signing? That’s more than a buyer courtesy. It’s margin-smart business. Burkhardt says Westwood operates on that principle, a strategy that now serves many on the BUILDER 100 list. “Our builder partners like that their buyer has a highly competitive home insurance offer up front. We monitor the process throughout contract to close and keep all parties thoroughly informed and on track. No surprises, no suspense,” Burkhardt says.
2. Understand an Evolving Insurance Landscape
Yes, insurance availability has improved, thanks in part to how surplus lines carriers and reciprocals have filled market gaps. “We work with more than 60 insurance companies to ensure our builder partners always have a market,” reports the 30-year insurance veteran. “A growing reliance on surplus carriers means insurance rates can change quickly. That rate uncertainty has the potential to disrupt buyer financing. An agency like Westwood works hard to prevent that by continuously shopping carriers and presenting immediate buyer options as needed.”
3. Think Beyond the Close
A satisfied home buyer is a powerful builder asset. It makes sense your insurance partner treats each customer like gold, because they are. One objective way to measure customer satisfaction is the Net Promoter Score (NPS) score. An NPS score of 30 to 70 is considered excellent. “In 2025 Westwood earned an NPS score of 92, which places us in the world-class category, the highest recognition in customer satisfaction. We go out of our way to simplify all facets of home insurance, from enrollment and claims to online convenience and licensed agent phone chats,” explains Burkhardt.
Don’t expose your closing process to needless friction points. Critically examine all the ways you can streamline the close. Home insurance is a good place to start and one that can yield immediate business benefits.
Learn how you can better safeguard margins and improve closing reliability.
