The insurance challenge facing builders in the spring 2026 housing market

The prospects for the construction and purchase of new homes appear brighter from the beginning of 2026. After last year’s contraction, housing statistics have expected to rise 3% this year.

A number of favorable factors are lining up to drive buyer demand. Affordability is improving: wage growth is outpacing inflation and house prices are moderating. Mortgage rates have fallen by half a point in recent months and could see a slight decline during the course of this year. Lower interest rates also help 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, the cost and availability of home insurance is increasingly challenging, putting pressure on buyers’ monthly payment budgets. Homeowners insurance premiums have increased by 21% nationally over the past three yearsand that is expected rise another 8% in 2026, making them the fastest growing part monthly payments (mortgage, taxes and insurance). Premiums are rising much faster in areas with higher weather-related risks, and some insurers continue to scale back the amount of coverage they write in those areas.

Now is the perfect time for builders to tackle this challenge before the spring homebuying rush by partnering with an insurance company that can reduce uncertainty about insurance coverage and pricing for buyers.

Built-in insurance – the game changer

Key to this solution is what is known as embedded insurance – integrating an insurance coverage offering directly into the homebuying process and workflow – and it is reshaping the way insurance is offered in new residential communities.

Purchasing home insurance has typically been a separate, time-consuming process for buyers, many of whom are first-time buyers and have no previous experience with home insurance. As a result, the search for insurance can be delayed for weeks or even days before the closing date, while availability or price surprises can delay closings or even cause deals to fall through altogether.

With an embedded insurance offering, builders can proactively prevent these situations by integrating homeowners insurance into the homebuying process early and seamlessly. In fact, an insurance adjuster like Westwood Insurance Agency, with its advanced technology platform, can integrate into a builder’s sales process, using the property information to pre-insure the home and deliver a personalized quote within 24 hours of signing the contract.

Instead of potentially receiving inadequate or overly expensive 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 from 92 by 2025, placing the company in the world-class category, the highest recognition in customer satisfaction.

Additional benefits for builders

When builders are considering an insurance company 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 builder from California founded the agency. Today, we work with many of the nation’s largest homebuilders and provide insurance quotes on more than 75% of new construction homes in the US. The relationships we’ve built with more than 50 insurance companies provide buyers with access to policy options with highly competitive coverage and pricing.

But the benefits of working with Westwood extend far beyond the sales phase. When builders explore land areas for purchase, Westwood can provide insights to help assess regions and properties for various insurability risks when choosing development locations. We also have information on how we can integrate resilient materials and construction types to withstand the region’s top hazards, further improving the availability and affordability of insurance coverage.

After closing and in the years to follow, the agency’s quality of service can improve your company’s reputation. For example, if a client has a claim, an experienced agency like Westwood acts quickly and with 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 under-insured and address any gaps in coverage. If their current insurer issues a steep premium increase or a non-renewal notice, a Westwood certified customer service representative can activate our network of insurance company partners to guarantee replacement insurance coverage.

As the spring buying season approaches, builders can address insurance challenges by working with Westwood. This ensures buyers get reliable coverage and peace of mind, while strengthening your brand in the marketplace.

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