
Hippo, a property insurance company based in Palo Alto, California, recently announced the launch of the Hippo Builder Insurance Agency (HBIA). The new channel leverages the company’s existing technology to allow builders of any size to partner with the HBIA without significant upfront costs.
By sending potential leads to the HBIA, builders can generate a predictable revenue stream. According to the company, the HBIA pays for each lead regardless of whether the homeowner closes on the property or purchases a home insurance policy.
"There is a misconception among builders that creating an agency to offer home insurance requires the allocation of significant resources and time," says Rick McCathron, Hippo president and CEO. "Neither is true—our technology makes this turnkey, allowing us to begin quoting a new partner’s leads in as little as two weeks. There is zero cost to our partners and they are not exposed to any additional operational risk."
Hippo's technology can ingest each home's specific details directly from a builder partner via an application programming interface or simple file. By accessing this data, the HBIA can accurately quote an entire development before addresses are assigned, or a customer is attached to a particular property, reports Hippo.
The HBIA reviews offerings from multiple home insurance carriers it represents to ensure each customer gets the correct policy, and quotes are tailored to each home's details. The insurance information is then shared electronically with the builder's mortgage and title partners to help avoid closing delays and remove some of the friction consumers can experience in the buying process.
Since launching in 2019, nearly 100,000 new-construction customers have taken advantage of Hippo’s digital insurance purchase experience. In 2022, 75% of Hippo partner Lennar’s new homes sold were insured by Hippo, states the company.
“We have been delighted by our overall experience with Hippo," says Stuart Miller, executive chairman of Lennar. "Lennar customers benefit from exceptional service and coverage tailored specifically to their new homes."