Getting Home owners Insurance from the Builder (mortgage, loan)

[HereItIs]

I am shopping around for home owners insurance now for the new home that is being built, and to my surprise, the builder’s own insurance company is giving the best rates (for the same limits/deductibles). I was expecting them to be the most expensive.

Is there any caveats I should have an eye on ?

[Poltracker]

What do you mean the builder's own insurance company? Do you mean the company that he has a policy with? or is this company associated with the builder?

[City Love]

I've never heard of a builder offering their own homeowners insurance. Could they just be reselling the insurance?

[westres1]

i would investigate this further...I have never heard of a builder offering their own insurance.
.

[ShelbyGirl1]

ditto...never heard of it.

[rigas]

pulte homes has its own insurance company, at least for general liability ins, not sure about homeowners ins.

pulte started offering ins to contractors a few yrs ago, and now they make things nearly impossible to use any insurers outside of theirs. they require some crazy wording and things, all of the verbiage in their ins contract is so strange, my insurance company told me my rates would go way up if they tried to match all the crazy stuff pulte requires. this is not a deal like builders will do where they deduct a % from a contractor for not having insurance, they actually have their own insurance company they want you to buy insurance from pulte homes.

pulte IMO is a racket, those guys will do what ever they can to take money out of your pocket and put it into theirs.

[HammerTx]

I know of another builder (now out of business) that did not offer insurance, but had a deal with an insurance agency to give them the name of every buyer that closed. And the builder referred their buyers to them for insurance. The agency sold policies from a few different companies and they got a lot of business this way because they often did beat the prices of the bigger guys like State Farm and Farmers.

There are a few websites that allow you to compare coverage and see the ratings of the different insurance companies. I see if I can find them later.

[RVD26]

DR Horton has its own in-house mortgage lender, DHI Mortgage, and title company, DHI Title.
I know we were offered home insurance through them.
Perhaps, the OP is referring to something like this.

[rigas]

you know what, now that i think about it, we live in a village builders home and our ins was through them also. just like our original loan i think they both where shopped out after that. village (lennar) had their own title company and insurance and later they will broker it out.

[msbiz]

So any pros or con's with going the the builder's affilated insurance company? I know lennar's affilate is USI. They also offered us a cheaper rate as well.