If you have concerns about home insurance, you’re not alone.
“I had four builders call me last week trying to get their heads wrapped around home insurance and the monthly house payment,” says insurance industry expert Tom Kriby.
“Builders control the home sale price. With buy-downs, they can control the initial mortgage rate,” Kriby says. “But they can’t control the price of home insurance. That’s a worry.”
Home insurance rates, coverage, and -- yes, even availability -- have added a wild card to closings. Buyers want clarity. However, clarity can be elusive when insurers make frequent and significant rate changes. Some companies have even withdrawn from markets, further diminishing insurance options.
Home buyers want a reliable understanding of the monthly house payment, including home insurance.
Confident Buyers
As the vice president of client development and partnerships at Westwood Insurance Agency, Kriby offers builders an insurance solution embedded into the home buying process. The buyer may accept this pre-underwritten insurance offer or shop for additional quotes. In most cases, buyers choose the embedded offer—the result is no home insurance suspense or surprises.
“When it comes to home insurance, upfront transparency means a lot. It reveals coverage, price, and even availability. Builders and buyers want all sides of the purchase understood at contract signing, including insurance,” notes Kriby. “Buyers deserve to know the monthly payment with confidence before groundbreaking."
Kriby and the Westwood team work closely with home builders in all 50 states. Today, the respected home insurance agency, founded by a home builder, helps provide needed homeowners insurance for more than 100,000 new home closings each year and represents more than 40 high-rated insurance company partners. This large assortment allows Westwood to offer nearly every home buyer comprehensive coverage.
Embedded Power
“Builders and buyers want home insurance transparency. That’s the power of embedded insurance. The builder knows with certainty the home is 100% buyer-ready, especially the insurance piece. It’s just one less worry,” Kriby observes.
“Buyers -- especially first-time home buyers -- appreciate a transparent purchasing experience,” Kriby notes. “We work prior to closing to pre-rate and pre-approve the insurance. If the buyer elects to go with us, acceptance is confirmed in seconds. Openness, speed, and convenience speak well of the builder and help build long-term buyer-builder trust.”
Beyond the Contract
Transparency isn’t confined to the contract signing. Kriby and his team also keep builders informed on changing insurance market conditions. How are rates trending over the next six months? The following 12 or 18 months? What can builders do to reduce location or construction risk? It’s insider insight the builder may not find anywhere else.
“We give the builders who utilize our agency as much information as possible. The builder can then use that knowledge to help inform their buyers,” Kriby says. “It’s all about transparency.”
Learn more about how an open, integrated approach to home insurance can benefit your business.
