Over 22 million Americans live in manufactured homes, but getting these homes insured isn't always easy or affordable.
CoverTree is on a mission to make manufactured home insurance easy, modern and affordable. Specializing only in this type (which also covers modular homes, tiny homes, and ADUs), CoverTree is focused on creating the best experience, and helping people save up to 40%.
Founded in Detroit in 2020, CoverTree has just announced the close of its latest funding round. This $13 million Series A funding round was led by Portage, with participation from AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and more. It brings the company's funding up to $23 million.
"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,” Adarsh Rachmale, Co-Founder and CEO of CoverTree, said in a press release. "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."
Leading investor, Portage, is known for making transformative investments in insurance technology. Its investment in CoverTree underscores the growing demand for modernized insurance products for homeowners.
"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," said 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."
Felesky will also join the board at CoverTree.
With this new round of capital, CoverTree is entering its next phase of growth, launching products that combine enterprise software, underwriting, and AI. Divyansh Sharma, CTO at CoverTree, said that this will help the company grow its profitability in various distribution channels. The new funding will also further empower CoverTree to invest in its product development, scale operations, and attract top talent to help push its mission forward.
