NETCLO

Information is one of the most valuable commodities. For the same reasons people purchase insurance, our product provides piece of mind, security and a way to balance risk and loss mitigation. In California, and many other parts of the country, insurance is in crisis mode. As climate change progresses, the situation will only get worse. We can’t solve tomorrow’s problems with yesterday’s solutions. It requires a new approach that harnesses the power of today’s technology. Utilizing the power of AI, our product lets you know up front, at the inception of a transaction, exactly where the property stands as it relates to its insurability and provides a pathway to getting an insurance quote and policy.


The current way of insuring property:
Insurance agents are standard in their approach to business operations. They wait for business to come to them or use tired and low-tech traditional marketing methods and rely heavily on residuals for their income.

The Netclo way:

By specializing in homeowners’ insurance and related hazards, we target business at its root and that is the real estate transaction. With over 33 years of real estate relationships,
We are making Netclo insurance a regular part of the transaction team. If you consider the newest change to the California purchase contract, with the addition of an insurance contingency, best practices dictate that you have a trusted insurance professional involved at the inception of a real estate transaction. Specifically:

1.     As soon as you start evaluating a property you may be listing.
2.     As soon as a buyer identifies property that they want to make an offer on.
3.     For lenders, as soon as a mortgage or refinance application is submitted.

Currently, California buyers wait to see if the property they went into contract on is insurable and many times it is after the contingency is removed. This puts the buyer in a potentially challenging legal position and puts their earnest money deposit at risk. It is also a smart business practice from the Brokers position. Risk mitigation is of primary concern to all Brokers.

At Netclo, we are harnessing the power of A.I. to predict the future of the $380 Trillion global real estate market. We’re building innovative software solutions to enhance the speed and efficiency of underwriting professionals in banking, finance and insurance.
We accomplish this with our core product. A self-service insurance underwriting portal that helps buyers, sellers, agents and bankers avoid breaches with a detailed Property Intelligence Report that shows the insurability of the property and much more. Netclo derives revenue from the sale of these reports as well as the sale of insurance products.



Solving problems before they begin or get worse:

An insurance forecasting and profiling tool.

Now more than ever, proper due diligence is necessary for a successful transaction. Look at these statistics from the California Association of Realtors:

In 2023, 6.9% of the residential transactions fell out of escrow (deal fell through) due to failure to secure affordable insurance. Of these, 61.4% of the time insurance was not available to the client and 19.3% of the time the premium was too expensive.

We can’t track it but it’s safe to assume that in some of these cases deposits were lost or some kind of legal action was taken. Both are very costly endeavors.
The situation is only getting worse. With the addition of an insurance contingency and closer tracking, I believe you will see these numbers increase significantly in 2024 and beyond. The business of selling homeowners insurance in California is in crisis mode and we don’t see a clear end in sight.

Knowing the insurability of the home and cost up front will eliminate most issues. This also effects the lending side of a transaction. Not knowing how much your insurance will cost will make it difficult to get an accurate preapproval from a lender. Currently, the rising cost of insurance is eroding buyers purchase power and along with higher interest rates effects affordability.

Netclo is a proud member of the NVIDIA Inception Program.