HomeownersInsurance.com Bought for a Reported $570,000 (All Cash)

I just received a press release from HomeInsurance.com announcing that the company has acquired HomeownersInsurance.com for over half a million dollars.

According to the press release:

HomeInsurance.com has purchased the domain name  HomeownersInsurance.com for a reported  $570,000  in an all-cash deal. As America’s number one online home insurance shopping agency, executives at  HomeInsurance.com project this purchase will grow their online home insurance shopping visitors to 100,000 consumers each month.

Prior to the acquisition, HomeownersInsurance.com had been owned for quite some time by Homeowners Insurance Online Services, S. A., a Costa Rican company.

In my opinion, this is a smart acquisition for the company. According to the Google Adwords Keyword Tool, the term “homeowners insurance” gets 33,100 exact match local searches a month, while the primary keyword “home insurance” is only a bit higher at 40,500.

By having two different websites ranking well in Google for these two terms, they should drive considerably more traffic to the site.

One thing I really like about this purchase is that it shows that a company that knows its market can make projections on how a similar (but different) domain name will do once it’s indexed and well-ranked in search engines. It can then use those projections to model how long it would take to break even on a domain acquisition and can determine an acceptable price to pay.

It may seem silly, but I don’t think a lot of companies look at domain names in this way. Acquiring a great domain name like this is one way a company can reinvest in its business and increase its reach.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

4 COMMENTS

  1. quick question. I used the Googe Adwords Keyword Tool to look at this “homeowners insurance” searches and I got 450,000 searches. You said 33,100 which is the amount for “homeowners insurance quotes”. Can you please clarify. Thanks.

  2. It is not only the search term but imagine if you ran commercials with this easy to remember name.

    Did you see they also bought 2 more state geo names.

    You think a trend is forming in the local insurance market.

    Just take a look at boxcar. Looks like they will be selling there state geo names soon.. Rule here is that if you own a state insurance name just don’t sell it. Hold out for 500k

    Nevadainsurance.com is only going for 175k on boxcar in my opinion that is steal. They have 3 others for sell at 175k wait still main street hears about these deals.

    Great story and great news for all insurance holders

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