CoverTree, an insurtech company specialising in manufactured home insurance solutions, announced today the successful completion of a $13 million Series A funding round led by Portage, with participation from investors such as AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and more.
To date, CoverTree has raised $23 million to provide affordable insurance solutions to the growing manufactured housing economy. This Series A investment underscores the growing demand for modernized insurance products in the ever-evolving homeownership industry.
The Series A funding will enable CoverTree to invest in product development, scale its operations, and attract top talent to continue its mission of reimagining home insurance. The round also marks a pivotal moment for the company, allowing it to expand its product offerings and strengthen its market presence within a historically overlooked market.
According to reports, over 22M Americans live in manufactured homes in the US, and 11% of new single-family homes in 2022 being those of manufactured homes, CoverTree provides an affordable and high-tech offering to the growing market.
The funds raised will be used to build out an enterprise suite including the launch of Maple, a resident insurance management software for property managers, Bonsai a binding and underwriting platform for independent agents and lenders, and Sequoia an automated underwriting and quoting system for insurance book conversions.
“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” said 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.”
Portage, known for its transformative investments in insurance technology, is enthusiastic about the partnership with CoverTree. Upon the completion of the investment, Portage’s Co-Founder and CEO, Adam Felesky, also joined the board.
“CoverTree’s focused approach on manufacturing home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche markets,” said Adam Felesky, Co-Founder and CEO at Portage.
He continued: “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.”
Divyansh Sharma, CTO at CoverTree, added: “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.”
