How does hippo insurance work

Wan stated that the biggest problem at Sabi was the lack of external capital i. So for his next endeavor, Wand wanted to make sure that the total addressable market TAM was significantly higher.

Prior to launching Hippo, Wand spent several years researching and dissecting the insurance industry. What he discovered was an extremely fragmented claims process, outdated legacy systems, costly premiums, and limited coverage. With some cash from his Sabi exit and a lot of time under his belt, Wand got to work. His first agenda point was to find a suitable co-founder with a background in tech. The most promising one of them ended up being Eyal Navon, who eventually became his co-founder.

Navon himself possessed years of experience in tech, both as an engineer as well as a leader of companies he had founded. In April , Hippo finally launched to the public. The service initially was only available in its home state of California. Within a matter of months, Hippo was able to expand into two new markets, namely Arizona and Texas. Hippo continued on its growth trajectory for the next few years, in large parts because of its lower pricing, tech-enabled customer service, and pro-active damage services such as the smart home device and its maintenance offering.

To that extent, Hippo has received a Net Promoter Score of 75, which is 3 times higher than the industry average. The company furthermore acquired a few other businesses to expand its offering and technological prowess, including US-based home maintenance platform Sheltr in or the Spinnaker Insurance Company in Today, Hippo is close to hitting profitability. Hippo Insurance makes money by receiving referral fees for the insurances as well as service contracts it facilitates.

It also partners with other companies to provide options for earthquake, wind, and flood insurance to customers. Hippo offers a wide range of home insurance coverage, and its streamlined technology may make it easier to request a quote or sign up for a policy.

However, policyholders receiving a loyalty discount from another insurer may find their current policy more affordable. In addition to standard coverages such as liability, dwelling, personal property, and loss of use coverage, Hippo offers computer and home office coverage, water backup coverage, protection for local ordinance changes, and coverage for workers in your home.

Hippo also offers several endorsements that can be added for an extra cost. Hippo currently sells homeowners insurance in 36 states. However, the company plans to expand to offer nationwide coverage.

Credit Cards. However, Hippo and Metromile recently partnered to offer their customers a bundling discount on property and auto insurance coverage. If you purchase your home or condo insurance with Hippo and your auto insurance with Metromile, you may earn significant discounts on both policies.

Similar to most U. However, a Hippo independent agent can provide you with options for purchasing this coverage. Hippo offers a commercial package policy that includes coverage for commercial property, data breach, general liability and commercial auto liability. The company also insures homeowners and condo associations, and offers landlord coverage. How We Make Money. Cate Deventer. Written by. Cate Deventer is a writer, editor and insurance professional with nearly a decade of experience in the insurance industry as a licensed insurance agent.

Edited By Amy Sims. Edited by. Amy Sims. Amy Sims is a senior editor for Bankrate, leading a team responsible for creating educational insurance content. Reviewed By Mark Friedlander. Reviewed by. Mark Friedlander. Director of corporate communications, Insurance Information Institute.

Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance. Share this page. Bankrate Logo Why you can trust Bankrate. We guide you throughout your search and help you understand your coverage options.

We provide up-to-date, reliable market information to help you make confident decisions. To that end, Hippo features a streamlined website and a smart home monitoring system that preemptively diagnoses issues with your home. Hippo offers policies through Spinnaker Insurance, a carrier it acquired in August , and other partners. All Hippo homeowners insurance offers standard coverage such as dwelling, personal property, loss of use and liability.

Additionally, Hippo includes these other types of coverage as part of its standard package:. Depending on where you live and which home insurance package you choose, your policy may also include:. It also has articles outlining the basics of homeowners insurance and how it works. The company provides customer support via live chat, email and telephone, although claims are handled only by phone and email.

Other insurance: Hippo offers condo insurance in addition to homeowners policies.