What's New
Two Florida-based insurers have created a new insurance program which promises to create "affordable, turnkey insurance options" for homebuyers in the crisis-stricken state.
The new program announced by Security First Insurance and Embark MGA earlier this month integrates insurance quotes into the homebuying and mortgage qualification process, seeking to make it easier for homebuyers to get coverage while they're purchasing a property—something that is increasingly becoming a challenge in the Sunshine State.
Newsweek contacted Security First and Embark for more information by email on Wednesday morning.
Why It Matters
Florida is in the midst of an insurance crisis that has left homeowners scrambling to find coverage.
Premiums have skyrocketed in recent years, driven by more frequent and more severe extreme weather events, excessive litigation, and widespread fraud. As a result of the growing risk posed by climate change, private insurers have cut coverage or withdrawn from the Sunshine State entirely, leaving Floridians with limited options beside the state's insurer of last resort, Citizens.
Without insurance, it is almost impossible to get a mortgage and buy a property.
Security First and Embark said that their new program comes "at a crucial time for Florida builders." The two companies reported that surveys revealed that insurance is often cited by homebuyers in the state as a major hurdle in the process of purchasing a property.
What To Know
The new homeowners' insurance program offered by the two Florida-based companies is a HO5 type—the broadest coverage available in the industry, also known as comprehensive policy.
"The new HO5 policy comes with a broader scope of protection for new homebuyers than the standard, with streamlined claims processing," the two companies wrote in a joint press release. "These HO5 policies are distinctive in the Builder channel because they provide 'open-perils' coverage for both the home and personal belongings, and coverage for incidents often excluded from traditional policies."
HO5 policies normally include the main house or dwelling; other structures on the same property; personal belongings; liability coverage; medical payments coverage; and loss of use coverage.
The partnership with Embark MGA has allowed the system to preload builders' home inventory, community details, and model data to enable "accurate, bindable" insurance quotes "without the need for lengthy applications," the companies said.
The system electronically shares insurance information with builders' mortgage and title partners, promising to reduce closing delays.
What People Are Saying
Bob Ketchum, senior vice president of product and underwriting at Security First Insurance commented: "This partnership with Embark allows Security First to expand our reach into a new segment of Florida homeowners. We pride ourselves on innovative product design and exceptional service and promise to be there for our customers when they need us the most."
Brian Crumbaker, executive vice president of distribution at Embark: "We are thrilled to partner with Security First Insurance, a company that shares our commitment to innovation and delivering exceptional, customer-centric service. We look forward to supporting the unique needs of new homebuilders and their clients. This new embedded product stands out with its competitive pricing and broad coverage options, offering a superior solution in the Florida market."
What's Next
The two companies have not yet announced when the new program will become available.
English (US) ·