Transforming real estate insurance: Who is LeaseLock?
To work around these limitations, leverages an AI-driven platform that can be seamlessly deployed through a building owner’s existing IT management system. Upon joining the ‘zero deposit community’, customers gain access to:
- An online lease checkout which swaps large security deposits for a small monthly fee
- US$5k of coverage (Standard package)
- Automated final account statements
Depending on the property owner’s needs, three coverage plans are currently available (paid by the resident with rent):
- $19 per month = $2.5k rent and $400 damage
- $29 per month = $5k rent and $500 damage
- $39 per month = $7.5k rent and $500 damage
Securing a gap in the market
At the time of writing this article, the company has reached approximately 1.5 million homes and insures around $1bn in leases.
Assessing the value proposition of the company, Karim Abdel-Ghaffar Plaza, Founding Partner of Westerly Winds, said, “Through technology, LeaseLock has intelligently solved [the problem of security deposits] while setting the foundation for an end-to-end enterprise insurtech platform. We are excited to back the business as it continues to realise its vision.”
Answering the call for a new solution
As with many companies emerging in the insurtech space, LeaseLock considers itself primarily as a technology company powered by insurance. As such Derek Merrill, Co-Founder and CEO, commented that the new funds would accelerate its development:
“We’re doubling-down on our core deposit replacement product, while investing in new insurance lines, payment and receivables technology, and market channels.”
Reichen Kuhl, Co-Founder and President, intimated that LeaseLock’s growth was inevitable in a market crying out for new solutions to enduring problems:
“The market is shouting for a better solution to upfront housing costs that serves both the renter and the operator. Our technology platform completely removes friction, cost, and regulatory risk from our customers’ operating infrastructure and P&L.”
As one insurtech’s most innovative offerings, the continued development of this California company should be something everyone follows with great interest.
Image and video credit: LeaseLock