Meet the insurtech: Locket

Locket, a U.K.-based insurtech, is offering home insurance designed to provide proactive protection, rather than just compensation for losses.

Founder and CEO Krystian Zajac calls standard home insurance a "towel" used to mop up after a loss, while Locket's offerings are like an umbrella that shields the home from loss, theft or damage. Locket's services are available on a monthly subscription basis that can be canceled any time.

Many insurers have promoted use of IoT sensors to detect burglary or a home intrusion. Zajac shares a few examples of potential losses that Locket guards against or has plans to address. For example, its Safetymapper feature uses historical police data to inform users of crime near them. "If there's a wave of bicycle theft around your house, we will notify you about that and we'll show you what you can do to actually minimize the likelihood of suffering a stolen bicycle," he says. 

For Airbnb hosts subletting a room or residence, traditional home insurance may not cover losses related to that activity. They would need a separate policy covering any circumstance related to Airbnb sublets. Locket's API infrastructure allows it to link it with Airbnb's app for hosts, according to Zajac.

"Now we know when your guests are checking in," he says. "Airbnb tells us, there's a guest coming through the door right now. Extra coverage kicks in for the duration of that day, and then the next day, two days, three days or week of the stay."

Locket, founded in August 2020 under the name Hiro, is using smart technology and IoT devices, plus "coaching" in its mobile app, to build a "last line of defense" for a home, according to Zajac. Locket's insurance covers a building's whole structure and contents; add-ons available include legal coverage for disputes with neighbors and home-emergency cover that uses its technology to arrange responses to emergencies, such as a burst pipe. 

"We'll send out a plumber within two hours, in the U.K.," he says. Locket's services are currently only available in the U.K., but the company is considering U.S. expansion, starting with educational engagement with customers in Q4 2022, with a potential full launch in 2023.

"The biggest differentiating factor in the US space is the fact that we want you not to claim," says Zajac. "We want to help you not to go through the pain of having a bad event in your life."

Zajac previously founded and led companies dealing with smart home technology and water leak detection. In 2016, he co-founded Neos Ventures, which offered smart technology to prevent losses that would become home insurance claims. Aviva acquired Neos in 2018 and sold it to Sky in 2021.

Drawing from this past experiences and his interest in home security and safety, Zajac has added educational features to Locket. The company is working with Michael Fraser, host of a BBC television show "Beat the Burglar," to educate customers on how burglars think. Locket is also providing safety tips related to water leaks, reminding its audience that the first thing they should do after detecting a water leak – and shutting their water – is to turn off their electricity to prevent getting shocked or worse. 

"Ideally we would like to create behavior that works even earlier than the last line of defense," says Zajac.