Making the most of every income source is smart business, especially in today’s housing market. So it’s good for builders to know there’s a way to monetize something most homeowners need to purchase with no upfront investment or risk.

Home builders of any size — from small, local builders to large production builders — can now generate predictable, guaranteed income by partnering with a home insurance provider. The builder not only generates additional revenue but also improves the customer experience by simplifying the closing process, lessening home buyer worry and reducing delays.

Value-Added Solution

The idea of integrating home insurance into mortgage and title purchases isn’t new. In recent years, large production builders like Lennar and others have offered a co-branded home insurance solution. The extra convenience and value are appreciated by home buyers, which can also serve as important brand differentiators for home builders.

“Our affiliated agency’s home insurance offering … with top-notch pricing and proactive protection sets customers up for a delightful home ownership experience,” confirms Stuart Miller, executive chairman of Lennar. Lennar opened the Lennar Insurance Agency to home buyers in 2019.

No Builder Risk or Investment

Hippo is one insurance company that has worked to make sure home builders of any size can monetize leads regardless of whether the homeowner closes on the property or purchases a policy from the company.

“We can partner with any size builder in a way that requires no upfront investment and few resources, all the while offering strong economics for our builder partners,” explains Rick McCathron, president and CEO of Hippo.

“The macroeconomic environment is tough right now. Being able to tell a builder ‘You can bring on an additional revenue stream with minimal resources’ is a welcome and timely message,” he says.

Predictable Revenue

McCathron says new builders can be onboarded in as little as two weeks and are compensated by the insurance company for each home buyer lead delivered regardless of whether the homeowner closes on the property or purchases a policy from Hippo. It’s predictable, guaranteed revenue for each lead. No insurance license, claims handling, staffing, or operational expense is required by the home builder.

Guaranteed revenue is just one aspect of such a partnership:

  • Industry-leading tech stack. The insurer adds each home's specific details directly from a builder partner via API. By accessing this exclusive data, the insurer can accurately quote an entire development before addresses are assigned or a customer is attached to a property.
  • Less closing friction. The home buyer is presented with a fully digital closing experience, including a precompleted insurance application, which shortens a process that typically takes days into minutes.
  • Improved customer experience and greater differentiation. Home insurance offered through the Hippo speaks to a level of care that may be difficult for other builders to match.

No home builder has it easy these days. It’s good to know builders of all sizes now have a simple way to earn predictable, guaranteed income with a solution that serves the best interests of builders and buyers alike.

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