Esurance is now offering Wisconsin homeowners the optionto purchase coverage directly over the internet, a first for theinsurance industry.

“Today, only 2 to 3 percent of U.S. homeowners insurance ispurchased online,” said Esurance President and CEO Gary Tolman in apress release. “Much like the way Esurance pioneered car insuranceonline, making it quick and easy to quote and buy, we'll change howconsumers shop for and buy homeowners insurance.”

Esurance's online tool automatically works with propertyspecialists to estimate reconstruction costs related to anindividual home's characteristics as well as the current cost oflabor and materials in the homeowner's neighborhood.

Coverage includes the standard homeowners policies of structureprotection, personal property protection, family liabilityprotection, water backup coverage and additional living expenses,along with customizable options such as “eco” upgrades to EnergyStar rated appliances and electronic data loss recovery. Theprogram offers 12 types of premium discounts for those who providetheir own appraisal/inspection report, or for customers who bundletheir auto and homeowners policies.

According to Steve Lekas, Esurance's director of HomeownerProduct and Actuarial Management, a lack of consistency betweencarriers catering to a variety of customer needs made it impossibleto define homeowners risk efficiently enough without an agent'shelp.

However, “Consumers are becoming more and more familiar andcomfortable shopping and buying online, and it is becomingsomething that people expect,” Lekas told PC360. “Withthese changes, the next step is for an insurance company, whoreally understands how to best help consumers shop and buyinsurance online, to build that capability.”

Esurance underwrites its own homeowners policies, as it doeswith auto insurance—the insurer chose to debut the program inWisconsin because the state domiciles one of its underwritingcompanies, says Lenkas.

Allstate purchased Esurance in late 2011 to revive its limpauto-insurance business that was losing customers' attention toProgressive and Geico, which were wooing new business withdirect-to-consumer online sales.

Esurance has been growing since its acquisition, enjoying asteady incline in new policies and a 27 percent increase in netwritten premium between the third quarters of 2012 and 2013.However, Allstate's homeowners policies in place decreased by about3.2 percent even as its net written premiums increased by 5.5percent since Q3 2012.

Although only currently available in Wisconsin, onlinehomeowners sales will be expanded within the U.S. In a previousnews interview, Esurance president Tolman said the policy will notbe offered in Florida and California because of high disasterrisks.