Last month, Florida residents considering new construction just got another reason to purchase a brand new property, built from the ground up.

Security First Insurance and Embark MGA, announced a new "HO5" product at the end of 2024 that integrates home insurance quotes into the homebuying and mortgage qualification process for those purchasing new construction.

New construction homes inherently have less risks, due to their requirement to meet current building codes and standards of safety. Less risk means less cost, making these policies typically more affordable for the homebuyer.

HO5 policies are unique in the sense that they provide "open perils" coverage for your home and personal belongings. Other structures that aren't attached to your main home - things like fences and storage sheds - are also automatically covered with this type of policy, as are loss of use, personal belongings and medical payments tied to certain property-related events.

We are pleased to see this new option hit the market because anything that helps reduce costs for the homeowner and encourage the purchase of safer properties is good for everyone in Florida. These new policies are slowly being integrated into builder databases, allowing new construction community data to be automatically pre-filled into insurance applications, resulting in quick binding and less work on the consumer's behalf.

Those interested in purchasing a new construction home may inquire through their builder's sales rep or get in contact with the insurer directly to qualify. (Or, if you're a Wren client, your dedicated agent would be happy to get you started with this type of policy!)