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US-based company secures seed funding to insure offsite manufactured homes.
According to the U.S. Census Bureau’s Manufactured Housing Survey, since 2010 (up to 2022), offsite manufactured home ‘shipments’ have increased by more than 130%.
That compelling statistic hasn’t gone unnoticed by a company called CoverTree, who have just launched the first ever digital insurance solution for residents of manufactured homes.
Their coverage areas are: Arizona, Indiana, Michigan, New Mexico, Ohio, Illinois, and Tennessee.
In recent years the surge in Americans embracing manufactured homes has accelerated, brought on by the pandemic, changing demographics, and supply chain issues for onsite building.
The launch of their manufactured home coverage was facilitated by a successful (USD)$10 million venture funding round which was co-led by AV8 Ventures and Distributed Ventures with participation from Detroit Venture Partners, Ludlow Ventures, and Annox Capital.
According to company sources, CoverTree will “use funding for team growth, state and product line expansion, expansion of technology that includes distribution portals and further automated underwriting, as well as investment in the company’s major partners.”
Adarsh Rachmale, Co-Founder and CEO, CoverTree, 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.”
According to the Manufactured Housing Institute of America, “there are 22 million Americans living in manufactured homes, and that number is expected to grow.”
