Builders Now Can Offer Homeowners Policies

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Amid news that statutory requirements on homeowners insurance premiums have driven Farmers Insurance from writing such policies in Texas and that State Farm is taking a break in California, Balboa Life & Casualty is looking particularly intrepid.

October 01, 2002

Amid news that statutory requirements on homeowners insurance premiums have driven Farmers Insurance from writing such policies in Texas and that State Farm is taking a break in California, Balboa Life & Casualty is looking particularly intrepid.

Balboa/Countrywide Home Loans this month is announcing a program to partner with home builders nationwide to offer homeowners insurance at the point of sale.

"We know there is a need by a new homeowner for insurance so that the loan gets funded," Balboa president Dave Cissell says. "We also know there is a need by the builder to make sure the home gets sold. Our view is that it should be a good, stable program for us, the consumer and the builder."

Benefits to builders include:

  • the opportunity to co-brand the insurance.
  • the opportunity to work with one carrier instead of several; Balboa is licensed in 47 states.
  • Internet-based quoting systems that allow new home salespeople to transmit quotes quickly.

A bigger benefit for builders willing to acquire insurance licenses is a share in the commissions from writing new policies.

"We are not only an underwriter and a risk taker, but in our family of insurance companies we have another capability, and that is to perform the insurance agency function," Cissell says. "So the large builder will simply outsource that responsibility to solicit, sell and service. And because the builder is licensed, we can share the revenue with them."

For details, visit www.balboainsurance.com.

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