Hippo, an insurtech startup looking to provide home insurance beginning in 2017, has announced $14 million in Series A funding led by VC firm Horizons Ventures.
Hippo says it is taking a new approach to the home insurance experience with digital distribution and coverage standards that reflect the changes in home contents since home insurance policies were initially developed.
The company plans to use investments for product development and marketing of its official launch early next year. Hippo has been approved by the California Department of Insurance to sell policies in the state and is currently in the middle of a closed beta program.
"We took everything that's wrong with the current state of home insurance—the confusing forms, the outdated policy terms, the agent as middleman—and fixed it," said Assaf Wand, CEO of Hippo, in a statement. “The home insurance industry hasn't changed in decades and no longer reflects modern lifestyles. Policies still cover old school items like pewter bowls, stock certificates and furs, but only provide $2,000 of coverage for home electronics. At Hippo, we make sure modern homeowners are fully covered through our online, transparent and affordable policies."
Joining Horizons Ventures in the funding round were RPM Ventures, Propel Venture Partners, GGV Capital and Pipeline Capital. Horizons Ventures has previously invested in companies such as Facebook, Waze and Spotify.
"In the days of technology, convenience and accountability, home insurance still isn't easily available online," said Frances Kang, project director at Horizons Ventures. "We believe Hippo will provide more transparency, efficiency and cost-savings and more importantly, peace of mind to consumers."
