The round was co-led by AV8 Ventures and Distributed Ventures. Detroit Venture Partners, Ludlow Ventures, and Annox Capital also participated.
CoverTree is a managing general agent (MGA) focussing specifically on specialty personal lines. The company aims to bring digital distribution, automated underwriting, and data-driven pricing to specialty personal lines of insurance.
CoverTree said it will use the funding for team growth and state and product line expansion. The capital will also fuel its expansion of technology, which includes distribution portals and further automated underwriting, as well as investment in its major partners.
Alongside the funding, CoverTree has also worked in collaboration with Markel to develop a manufactured home insurance product.
The InsurTech said that beyond the densely populated metropolitan areas in the US, there exists an alternative housing boom brought on by the pandemic, changing demographics, and supply chain issues for on-site building.
Since 2010, CoverTree highlighted that yearly manufactured home shipments have increased by more than 130%, according to the US Census Bureau’s Manufactured Housing Survey). A manufactured home is a prefabricated home, built in a factory and subsequently installed on-site.
CoverTree’s manufactured home product is available in Arizona, Indiana, Michigan, New Mexico, Ohio, Illinois, and Tennessee.
Adarsh Rachmale, co-founder and CEO, said, “InsurTechs and major carriers have historically ignored middle America, specialty insurance, and manufactured homes.
“Specialty insurance is difficult to underwrite and distribute. A specialty insurance policy often passes through multiple pairs of hands before it ends up with the consumer—who ends up overpaying and getting the worst experience. We believe manufactured home insurance should be easy, modern, and affordable.”
CoverTree’s manufactured home product is available in Arizona, Indiana, Michigan, New Mexico, Ohio, Illinois, and Tennessee.
