Manufactured Home Insurance Provider CoverTree Secures $13M

CoverTree secures $13M in series A funding round to expand and innovate in the manufactured home insurance market

CoverTree, an insurance startup specializing in manufactured homes, successfully secured $13 million in a Series A funding round, raising the total amount of funds raised by the company to $23 million.

The investment was driven by notable participation from AV8 Ventures, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, and Annox Capital.

The capital injection, led by Portage,  is earmarked to expand their operations across multiple states including Arizona, Indiana, Michigan, New Mexico, Ohio, Illinois, and Tennessee, reflecting its "commitment to underserved markets" with "affordable and accessible insurance products". 

The company intends to broaden its range of products, which includes launching Maple, a software for managing resident insurance, Bonsai, a platform for binding and underwriting, and Sequoia, a system for automated underwriting and quoting.

Vision for the Future

“With the continually changing homeownership industry, we are excited to continue expanding our services to the growing manufactured housing industry: we believe this is the future of how all Americans will live,” says Adarsh Rachmale, Co-Founder and CEO of CoverTree. “This investment is a testament to the value we bring to homeowners by redefining the insurance experience. With these funds, we will continue to innovate, expand our reach, and ultimately provide even more individuals with peace of mind through our high tech and accurate home insurance solutions.”

The company's leadership emphasized the challenge and opportunity in their niche market. Adarsh Rachmale, co-founder and CEO of CoverTree, highlighted the traditional neglect of specialty insurance and manufactured homes by major carriers, pointing out the inefficiencies and high costs passed onto consumers. Partnering with Markel, they aim to revolutionize this segment by leveraging robust coverage options, sophisticated pricing, and cutting-edge technology to enhance customer experience and affordability​.

Portage, recognized for its investments in the insurtech space, has expressed its strong support for its collaboration with CoverTree. Following the successful funding round, Adam Felesky, Co-Founder and CEO of Portage, has taken a more direct role in guiding the company's strategic direction by joining its board of directors. This move not only underscores Portage's commitment to CoverTree's success but also brings valuable industry expertise to the table, which could be pivotal in steering the company towards achieving its business objectives.

“CoverTree’s focused approach on manufactured home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche markets,” says Adam Felesky, Co-Founder and CEO at Portage. “With a growing market and the need for affordable housing greater than ever, we are confident in CoverTree’s ability to drive positive change in the insurance landscape and are excited to support their journey.”

“The next stage of growth adds a new dimension to the CoverTree technology platform with the launch of products combining Enterprise Software, underwriting, and AI. We have innovated with a unique abstraction layer integrated with our core systems that allows us to grow profitably in various distribution channels. Our distribution technology is able to reach manufactured home residents in relatively rural parts of the US without running marketing ads,” says Divyansh Sharma, CTO at CoverTree.

**************

Make sure you check out the latest industry news and insights at InsurTech Digital and also sign up to our global conference series - FinTech LIVE 2024

**************

InsurTech Digital is a BizClik brand 

**************

Share

Featured Articles

UHG CEO Witty Admits Hack hit Third of US Citizens' Data

US congressional hearing learns from UnitedHealth Group CEO Andrew Witty that Change Healthcare cyberattack compromised data of third of the US population

Allianz Announces Partnership With Clearspeed

Emerging scams like moped fraud and shallow fakes pose new challenges to insurers, so more sophisticated detection systems are crucial

Milliman Arius: Reserve Analysis with an End-to-End Solution

Insurers face risks and errors with current reserve analysis methods – and Arius provides the answer

Allstate: BCG Partner Harnesses Gen AI to Transform CX

Technology & AI

Comarch Diagnostic Point: Next Gen European Health Insurance

Insurtech

MoneyLIVE Summit 2024: Qover Talks Embedded Insurance

Insurtech