The outlook for new home construction and purchases appears brighter going into 2026. After contracting last year, housing stats are forecast to rise 3% this year.
A few favorable factors are lining up to boost buyer demand. Affordability is improving: wage growth is outpacing inflation, and home prices are moderating. Mortgage rates have trended down by half a point over the last several months, and they could see a further slight decline over the course of this year. Lower interest rates are also helping builders finance new community projects. The combination of these factors, along with pent-up buyer demand during the winter months, could make for a robust spring market.
At the same time, home insurance costs and availability are increasingly a challenge, putting pressure on buyers’ monthly payment budgets. Homeowners insurance premiums are up 21% nationally over the past three years, and are expected to rise another 8% in 2026, making them the fastest-growing component of monthly payments (mortgage, taxes, and insurance). Premiums are rising much faster in areas with higher weather-related risks, and some insurers continue to pull back the amount of coverage they write in those areas.
Now is the perfect time for builders to address this challenge before the spring homebuying rush by teaming up with an insurance agency that can reduce the uncertainty of insurance coverage and pricing for buyers.
Embedded insurance – the game changer
The key to this solution is what’s known as embedded insurance — integrating an insurance coverage offer directly into the homebuying process and workflow — and it’s remaking how insurance is provided in new home communities.
Securing home insurance has typically been a separate, time-consuming process for buyers, many of whom are first-time owners with no prior experience with home insurance. As a result, the insurance search may be delayed for weeks or even days before the closing date, when availability or pricing surprises can delay closings or even scuttle deals altogether.
With an embedded insurance offering, builders can proactively prevent these situations by integrating homeowners’ insurance early and seamlessly into the homebuying process. In fact, an insurance expert like Westwood Insurance Agency, with its advanced technology platform, can integrate into a builder’s sales process, using the property information to pre-underwrite the home and deliver a personalized quote within 24 hours of contract signing.
Instead of potentially receiving inadequate or overpriced protection, buyers gain access to policies with broad, competitively priced coverage designed specifically for new construction homes.
The results of this approach have been proven repeatedly — fewer closing delays, a smoother buying experience, and peace of mind for the buyer. This commitment to a positive customer experience has earned Westwood a Net Promoter Score SM of 92 in 2025, placing the company in the world-class category, the highest recognition in customer satisfaction.
Added advantages for builders
When builders consider an insurance agency for a new home insurance program, experience makes a big difference. For example, Westwood has been an expert in home insurance for new construction since the 1950s, when a local California builder established the agency. Today, we work with many of the nation’s leading home builders, providing insurance quotes for more than 75% of newly constructed homes across the U.S. The relationships we’ve built with more than 50 insurance companies offer buyers access to policy options with highly competitive coverage and pricing.
But the advantages of working with Westwood go well beyond the sales phase. When builders explore land tracts for acquisition, Westwood can provide insights to help assess regions and properties for various insurability hazards as they choose development sites. We also have information on how to incorporate resilient materials and construction types to withstand the key hazards in the region, further improving insurance coverage availability and affordability.
After closing and in the years that follow, the agency’s service quality can enhance your company’s reputation. For instance, when a customer has a claim, an experienced agency like Westwood acts with speed and empathy, knowing exactly what to do to guide homeowners and help them recover.
Another value-added service for customers is an annual insurance review, which can identify areas where customers are over- or underinsured and address any gaps in coverage. If their current insurer issues a sharp premium hike or a non-renewal notice, a licensed Westwood customer service representative can activate our network of insurance company partners to secure replacement insurance coverage.
As the spring buying season approaches, builders can tackle insurance challenges by working with Westwood. This ensures buyers receive reliable coverage and peace of mind, while enhancing your brand in the market.
Click Here
English