Travelers, State Farm and Nationwide led a new $60 million venture capital financing for HOVER, an InsurTech with a 3D data platform for home improvement and property insurance professionals.
Longtime investor Standard Industries also participated in the Series D financing, along with Menlo Ventures, GV, Alsop Louie Partners and Guidewire Software, Inc.
Plans call for using the investment infusion to beef up the company’s 3D data platform and also expand its e-commerce efforts. Hiring is in the mix as well.
“Today’s investment is evidence that our new and existing investors believe we will continue the transformation of the insurance and home improvement industries,” A.J. Altman, founder and CEO of HOVER, said in prepared remarks.
HOVER, a San Francisco-based InsurTech, launched in 2011 and has raised $147 million in financing to date, including the new round. It pulled in a $25 million Series C round in April 2019.
The company uses computer vision and machine learning to structure property data, a concept that it said allows for seamless workflows from appraisal and estimation to interactive 3D design and materials ordering. HOVER said insurance professionals and contractors use its app to drive efficiency and transparency in their workflows and provide a superior experience for homeowners. A mobile app lets home improvement and insurance professionals measure, design, and estimate projects in one place. Smartphone photos transform into photo-realistic, accurately measured, and fully-interactive 3D models of any home, the company said.
The insurance industry pitch for HOVER’s technology is this: a reduction in property claim cycle times and improved policyholder satisfaction by using up-to-date photos and detailed property measurements to create accurate claim estimates. As well, HOVER lets policyholders capture the photos themselves, which unlocks desk adjusting and enables a virtual claims experience. HOVER’s data set including Total Living Area helps the underwriters by determining replacement costs, quoting, and binding policies, the company said.
Eric Ross, the head of Nationwide’s venture capital and M&A teams, said that its participation in HOVER’s financing fits with its ongoing strategy concerning technology innovation.
“Nationwide is committed to investing in technologies that advance the infrastructure behind insurance, and HOVER fits that thesis well,” Ross said in prepared remarks.
Nick Seminara, executive vice president and chief claims officer of Travelers, said in prepared remarks that HOVER’s technology has helped makes its claims process, easier, faster and more transparent.
“We see a tremendous opportunity for HOVER in the insurance industry, and we’re pleased to continue our partnership and invest in their future,” he said.