The American homebuyer is nervous. Mortgage rates remain high, insurance premiums are soaring, and uncertainty about the economy, interest rates, and even extreme weather events is rattling consumer confidence. April's U.S. Consumer Confidence Index dropped 7.9 points — the fifth consecutive month of declines, to levels not seen since Covid. The data is clear: Buyers are questioning whether now is the right time to commit to the most expensive purchase of their lives.

That uncertainty is becoming an existential problem for homebuilders.

For homebuilders, the risk isn’t just in unsold inventory — it’s in deals that fall apart at the last minute. A buyer can get pre-approved for a mortgage, sign a contract, and still walk away if an unexpected insurance premium hike suddenly makes their monthly payment unaffordable. The hard truth: Uncertainty is killing deals.

Predictability, trust, and risk management are no longer optional in homebuilding. Builders who eliminate surprises for their buyers, particularly around insurance, stand the best chance of closing sales in today’s volatile market.

Christine Geeslin, VP and Executive Account Manager at Westwood Insurance Agency, which specializes in insuring new construction homes, puts it plainly:

Buyers today want far more than just a beautiful floor plan. They want simplicity, transparency, and confidence in every step of an already complicated homebuying journey.”

The ROI of Radical Simplicity

Streamlining the homebuying process isn’t just about optics or “nice-to-have” choices — it’s a business imperative. In a market where uncertainty makes buyers pause, radical simplicity earns trust and drives decisions.

Offering real-time clarity on financing and home insurance is no longer optional—it’s essential,” Geeslin says. “When builders provide that information to their buyers early in the process, that helps build trust through proactive communication.”

And trust can’t be an afterthought. It must be designed into the experience from the very first interaction. That’s where embedded insurance platforms are changing the game.

At the time of contract, Westwood gives homebuyers instant access to coverage options tailored to their specific model and community—directly within the builder’s workflow,” Geeslin explains. “This kind of transparency allows buyers to make informed decisions earlier in the process.”

The result? A smoother journey for the buyer, and less fallout risk for the builder.

Spring Selling Season: A Slow Start and a Clear Warning

The 2025 Spring Selling Season has brought more disappointment than momentum for many builders. New home sales are soft in several key markets, and standing inventory is starting to raise alarms. Builders who expected a post-rate-cut boost are instead staring down cautious consumers and hesitant buyers.

According to the U.S. Census Bureau, new home sales for February came in below expectations in March 2025. Even though the following month's data shows signs of solid underlying demand, cancellation rates—especially among first-time buyers—have ticked up across both public and private builders. Executives on Q1 earnings calls have expressed concern over buyer skittishness, pointing to a mix of affordability challenges, rate uncertainty, and the rising cost and limited availability of home insurance as key friction points.

Even builders who have carefully managed their backlog and spec inventory now face growing exposure. Units are completed, but closings are dragging. Pricing power is under pressure. In some submarkets, incentives are creeping back.

This climate makes it critical for builders to adopt solutions that provide both attainably-priced products and peace of mind.

Operational Benefits for Builders

Simplifying the process also pays off behind the scenes. Builders who integrate home insurance into their sales workflow are seeing measurable efficiencies.

Builders who integrate home insurance into the sales process reduce administrative burdens, minimize delays, and ensure more predictable closings—especially in markets where insurance costs and availability are volatile,” says Geeslin.

Timely closings are especially critical in today’s environment, where interest rate locks are tight and buyer patience is thinner than ever.

Enabling the Sales Team

None of this happens unless the sales team is equipped with the right tools and support. Builder sales counselors often juggle dozens of buyer concerns, from financing to design decisions.

Builder sales counselors wear a lot of hats,” Geeslin says. “Making them aware of Westwood’s services early in the process helps them engage buyers with a complimentary home insurance quote upfront. It’s a soft-sale approach that builds credibility and prevents last-minute scrambles.”

This early engagement also empowers sales teams to build buyer confidence, reducing surprises and reinforcing the builder’s value proposition.

A Tech-Forward, Human-Centered Experience

Finally, simplicity doesn’t mean impersonal. Technology can streamline and enhance the buyer journey, but trust still comes from people.

Westwood is a technology-forward agency with a human touch,” says Geeslin. “We’ve simplified what was once a cumbersome insurance experience by integrating with builders’ systems and pre-underwriting communities—making the process seamless for buyers.”

The automation and integration allow Westwood to offer fast, reliable insurance solutions without sacrificing the personalized service that buyers rely on when making high-stakes decisions.

Simplicity Is the New Competitive Edge

As the 2025 Spring Selling Season unfolds, homebuilders face tighter margins, heightened buyer anxiety, and less room for error. In this environment, the smartest builders are betting on simplicity — not just as a customer experience goal, but as a strategic and operational edge.

The payoff is real: more confident buyers, fewer cancellations, smoother closings, and stronger reputations – all of which come with the territory of embedded home insurance with each home purchase’s entry point. In a market defined by volatility, simplicity delivers certainty—and certainty sells homes.