Homeowners insurance is a bit of a necessary hurdle to closing on a home – most lenders require proof of insurance before you can close on a home. But buying a home already comes with a ton of paperwork, from title documents to tax forms. What if your builder can help you cross homeowners insurance off your list?
Enter embedded homeowners insurance. A growing number of U.S. home builders are partnering with trusted insurance providers to offer embedded home insurance to simplify the buying process and improve customer satisfaction.
Here’s what you need to know about how embedded insurance works, what it means for your home closing, and what benefits it offers.
Embedded Insurance FAQ:
1. What is embedded insurance?
Embedded insurance is offered by certain builders to build your home insurance policy right into your new-home purchase, allowing you to secure home coverage from the jump and skip the extra step of shopping for a separate policy before closing.
2. How does embedded insurance work?
To offer embedded insurance, builders partner directly with insurance companies to integrate homeowners insurance into the buying process.
Right now, there are two major insurance companies in the embedded insurance game: Westwood Insurance Agency and Hippo Insurance. However, several builders have partnered with these companies to offer embedded insurance.
3. What are the Benefits of Embedded Insurance?
Embedded insurance benefits both builders and homebuyers.
For builders, embedded insurance can shorten the sales cycle, reduce closing delays, and help set them apart in a competitive housing market. These benefits directly affect customers in a positive way: faster closings, less hassle.
More buyer benefits include immediate coverage, transparent pricing, and a simpler, more convenient path to ownership. Plus, with one less logistic to worry about, you can focus on what’s important: designing and moving into your new home.
In a press release with NewHomeSource’s sister publication BuilderOnline, Dave Stallcup, customer service representative for Westwood Insurance Agency, a leader in embedded insurance, embedded insurance ensures homeowners get three things: sufficient dwelling coverage, a reasonable premium, and prompt help when filing a claim. Buyers who opt for embedded insurance with Westwood receive top-rated service, long-term value, bundled savings, and over 50 carriers to choose from.
4. How can I get embedded insurance?
Embedded insurance usually offered online at the point of sale; depending on your builder, it can be either opt-in or automatic, so it’s worth checking before you press go.
5. Does embedded insurance save me money?
Short answer: yes. According to Hippo insurance, since embedded insurance is a part of the process rather than being another bill on top of everything, quotes can be personalized and costs are transparent and accurate. Buyers who use embedded insurance also sometimes have access to exclusive discounts not available through traditional means.
6. Does my builder offer embedded insurance? Not every builder offers embedded insurance yet – but more are adding it each year. Several national and regional home builders offer embedded insurance, including:
Westwood isn’t the only company trying out this innovation. Hippo Insurance’s New Homes Program is another insurance agency that’s beginning to adopt the process, providing builders and buyers in California, Florida, and Texas with access to embedded insurance.
The Bottom Line
As the housing market adapts to higher costs, tighter timelines, and shifting buyer expectations, embedded insurance has been a simple but impactful addition to the buying process. With more builders exploring embedded insurance partnerships in 2026 and beyond, the model might become a standard feature of the new-home experience rather than an optional perk.
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