The summer of 2025 has brought little relief for homebuilders or homebuyers.

High mortgage rates, rising construction costs and economic uncertainty continue to deter many potential home buyers during this summer season,” notes the National Association of Home Builders in late August.

New single-family home sales fell to a seasonally adjusted annual rate of 652,000 in July, down 8.2% from a year earlier, while inventories climbed to their highest sales-adjusted level in a decade.

That demand-side strain is showing up in household psychology as well. The Conference Board’s August survey reported that its consumer-confidence index fell again to 97.4, dragged down by job-market concerns.

Views of current economic conditions fell by 1.6 points, to 131.2, while people’s forward-looking expectations decreased by 1.2 points to 74.8. The survey’s creators say expectations levels below 80 often signal a recession is ahead,” according to The Wall Street Journal.

Buyers already stretched by high borrowing costs are also now looking over their shoulders at the stability of their jobs and incomes.

Insurance adds another layer of stress to the mix. Home insurance premium costs and availability in higher-risk geographies have emerged among top-of-mind concerns among would-be homeowners.

The Federal Reserve Bank of Minneapolis has tracked a widening gap between premiums and payouts:

All over the country, the cost of homeowners insurance has increased rapidly… average premiums increased by 34 percent nationwide over a seven-year period. But in some Ninth District states, premiums increased even faster… At the same time, what homeowners receive for their premiums has decreased, as insurers impose new conditions on coverage of common perils such as wind and hail damage.”

It’s in this fragile climate—where affordability collides with buyer anxiety — that trust, transparency, and predictability in the homebuying process become decisive catalysts. For builders, that means shifting insurance from an afterthought to a front-end trust signal.

Insurance as the First Post-Sale Experience

For decades, builders treated insurance as a box to check just before closing. But that old sequencing doesn’t work anymore. In markets where affordability and climate risk collide, insurance has become one of the first and longest-lasting brand experiences a buyer has with a builder.

Kimberlee Furcht, Vice President and Executive Account Manager at Westwood Insurance Agency, sees the shift daily.

Knowing what your insurance costs are going to be up front helps alleviate a lot of the anxiety and last-minute surprises that both the home buyer and the builder may experience,” she said. “Westwood works with builders to embed home insurance into the earliest stages of the homebuying journey, giving buyers clear visibility into insurance costs from the outset. This creates a smoother process and helps prevent a sale from falling through due to unexpected insurance expenses.”   

In other words, insurance confidence isn’t just about coverage—it’s about closing velocity. If buyers have one fewer unknown, one fewer reason to hesitate, the path to commitment is smoother.

Local Knowledge, National Reach

But insurance is not a one-size-fits-all product. Conditions in wildfire-prone California look nothing like those in hurricane-vulnerable Florida or hail-heavy Texas. That’s where local expertise becomes essential.

As Furcht explains:

We pre-underwrite all the communities built by our builder partners, giving us a clear understanding of our insurance options nationwide. In addition, our regional account managers are embedded in the local markets and know exactly what's happening in this ever-changing insurance market.”

That local presence becomes part of the builder’s own sales credibility. When salespeople are educated about what’s happening in their market, they can prepare buyers with specifics, not platitudes. As Furcht puts it,

Having a solid grasp of this component—especially since it’s essential for closing—benefits both the sales staff and the buyer.”  

Reducing Cancellations Through Transparency

Every builder today has horror stories of buyers backing out late in the game—sometimes after tying up a home for months—because of a last-minute financial surprise. Insurance can be one of those triggers.

When salespeople understand the insurance environment, they’re better equipped to guide homebuyers,” Furcht says. “Transparency around costs is an important tool, giving buyers a clearer picture of what’s ahead and helping them make confident, informed decisions on the path to closing.”

That “tool in the toolbox” phrase echoes a broader theme in sales today. The more tools sales teams have to reduce friction and uncertainty, the more confident they are in keeping deals intact.

When Insurance Becomes a Sales Asset

Builders who position insurance as part of the sales pitch—not an add-on—are starting to see tangible results.

Knowing that their buyer, right after contract signing, is going to have a prepared home insurance quote instills confidence in both the homebuyer and the builder,” Furcht explains. “It gives buyers peace of mind knowing their insurance is already in motion, and builders gain confidence knowing we understand the unique needs of new construction homes and are ready to support them from day one.”

This distinction matters. Many traditional agencies are oriented toward resale markets, where underwriting is done home by home. Westwood’s long experience in builder partnerships allows it to address the needs of communities as they’re being developed, turning insurance from a potential deal-killer into a deal-accelerator.

Navigating Hard-Hit Markets

Of course, confidence is hardest to deliver where risk is highest. California and Florida are ground zero for the affordability strain, as well as climate-driven insurance retreat. Yet it is in these markets that differentiation is most valuable.

Buyers and builders both appreciate that we understand the insurance market and communicate openly about potential challenges,” Furcht notes. “That transparency builds trust and allows us to find solutions that help buyers move forward with confidence.”  

That combination of realism and resourcefulness signals to builders that even in the hardest-hit regions, trust can be built and sustained—if the insurance partner is both embedded and proactive.

Beyond the Close: Retention as the Next Frontier

Trust doesn’t stop at closing. Retaining buyers as long-term customers means helping them adapt as premiums rise and coverage shifts.

As an independent agency, Westwood works with a broad network of carriers, giving our customers options and flexibility,” Furcht explains. “This means customers can count on us to consistently find coverage that meets their needs.”   

That post-close adaptability extends the builder’s brand halo. Buyers remember not just the home but the stability of the ownership experience—and they talk about it in ways that fuel referrals.

Sales Strategy: Trust as a Differentiator

Finally, builders are beginning to recognize that insurance confidence is not a back-office function—it’s a competitive edge.

We’re getting a lot of calls from builders, especially in California, where they’re being more mindful of where they’re building because of potential insurance challenges and the insurability of homes,” Furcht observes. “There are a lot of unknowns in today’s insurance landscape, but we are optimistic about it becoming more stable and predictable for builders and their buyers.”

That sentiment — that the system is stressed but repairable — matters. It points to a middle ground where builders can act today – including working with an insurance expert like Westwood to embed insurance in the homebuying journey, and adopting emerging building technologies to “harden” their new homes and neighborhoods for resiliency in the face of more frequent and more severe natural hazard risks -- even while regulators and carriers work out longer-term adjustments.

The Takeaway: The Trust Premium

Affordability strains are reshaping the homebuying equation. Anxiety about jobs, incomes, interest rates, and insurance premiums can stop a purchase in its tracks. But the builders who recognize insurance not as a hurdle but as an opportunity are reframing the conversation.

Furcht captures the heart of it with her parting thought:

In a market clouded by uncertainty, people still need homes and the confidence that comes with protecting them. When builders treat insurance as a value-add rather than a barrier, it becomes part of the solution. That’s what we’re committed to delivering: coverage that builds trust, and trust that helps close sales.”

That’s the trust premium: not a luxury, but a necessity in markets where doubt rules. For Westwood and its builder partners, it’s also a sales accelerator. Trust, once earned, is the most durable foundation of all.