Insurtech Startup CoverTree Raises $13 Million
CoverTree logo superimposed over a manufactured house

Insurtech Startup CoverTree Raises $13 Million

An insurtech firm with a unique niche has raised a new round of funding.

About the round:

This week, CoverTree announced that it recently raised $13 million. The Series A was led by Portage. AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and others also participated. In total, the company has now raised $23 million, including an $8 million seed round in 2022.

With the new funds, CoverTree plans to expand its enterprise suite. This includes launching a resident insurance management software called Maple, a binding and underwriting platform called Bonsai, and an automated quoting system called Sequoia. The company also plans to grow its product offerings and market presence as it works to reshape the home insurance sector.

About CoverTree:

CoverTree is a digital insurance site that specializes in policies for manufactured homes. The Detroit-based startup offers automated underwriting and allows customers to retrieve quotes from their website. Currently, CoverTree’s manufactured home product is available in 14 states: Arizona, Michigan, Indiana, New Mexico, Ohio, Illinois, Tennessee, Texas, Arkansas, South Carolina, Kansas, Oklahoma, Georgia, and Alabama.

What they’re saying:

Discussing CoverTree’s latest round, the company’s co-founder and CEO Adarsh Rachmale said, “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.”

Rachmale continued, “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.”

Additionally, commenting on Portage’s investment, the firm’s co-founder and CEO Adam Felesky stated, “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. 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.”

My thoughts:

The great thing about FinTech and insurtech is that startups are really able to find a niche. That’s definitely the case with Covertree. While there are a growing number of large firms that have revolutionized the insurance industry, Covertree’s specificity makes them special — which is why I’m excited to see them succeeding. Hopefully this new round of funding will allow them to continue growing and helping a market that I have no doubt is underserved.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

American Express Member Week March 17-21

American Express Announces March Member Week Celebration

In celebration of its 175th anniversary, American Express has announced that it will be hosting Member Week next month. About Amex Members Week: Amex is bringing back Members Week for 2025 — this time launching the affair in March as opposed to the traditional fall timeframe. This latest event also marks the first time the company has celebrated it since the 2023 edition. 2025's American Express Member Week will be...
Gasbuddy+ Mastercard

GasBuddy Introduces Pay with GasBuddy+ MasterCard Debit Card

The popular app GasBuddy is rolling out a new and improved version of its gas rewards debit card. About Pay with GasBuddy+: GasBuddy has announced the launch of the Pay with GasBuddy+ card. This debit card builds upon the previous Pay with GasBuddy card with some new features. Most notably, in contrast to the original card which could only be used at gas stations, the new product allows for purchases...
Robinhood logo next to KC and Phi betting options

Robinhood Pulls Sports Event Contract Feature Due to CFTC

After announcing that customers would be able to purchase event contracts tied to the outcome of the "Pro Football Championship," Robinhood has abruptly reversed course. What's happening: Earlier this week, Robinhood revealed that approved users would be able to purchase event contracts centered around what they called the "Pro Football Championship" (known to most as the Super Bowl). With this feature, customers could buy contracts that would pay out if...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox
Travelers with two Best Western Credit Cards

Best Western Debuts Two New Rewards Credit Cards

After pausing applications for their previous rewards card, the hotel chain Best Western has unveiled a new pair of rewards credit cards with a new issuer. About the Best Western cards: Best Western is partnering with First Bank & Trust and Mercury Financial to introduce two new co-branded credit cards. First up is the no-annual-fee Best Western Rewards Visa Signature Card. With this card, customers can 4x points on Best...
Marriott Bonvoy card and a woman on vacation

Marriott Bonvoy Bold Card Launches Travel Contest

Chase and Marriott Bonoy have unveiled a special contest while continuing to offer its best-ever welcome bonus. About the welcome bonus and Bold Chat Court Contest: Marriott Bonvoy and Chase have launched a special opportunity called the Bold Chat Court contest. As part of this contest, 10 lucky travelers will be awarded 500,000 Marriott Bonvoy points (for a total of 5 million) as well as $5,000. For this contest, the...
Bilt and All Reward logos

Bilt Adds 2 New Transfer Partners Including First 3:2 Transfer Rate

Bilt is once again expanding its travel transfer rewards program — and is even breaking the mold with one new partner. About the new additions to Bilt: This week, Bilt launched partnerships with two more travel brands: TAP Air Portugal and Accor. As a result, Bilt members will now be able to transfer their points to Miles&Go and ALL Reward, respectively. In total, Bilt now has 18 transfer partners including 13...
Fioney Top 10 Must-Read Personal Finance Articles Septemeber 2024

Top 10 Personal Finance Articles of the Month — September 2024

Welcome to Fioney's look at the top 10 personal finance articles of the month. On the first Friday of each new month, we look back at some of our favorite posts published in the weeks prior and highlight them right here. This includes a mix of sites that have become staples of our lists as well as many first-timers. To start things off this month, we'll look at some articles...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...