Hippo, an InsurTech MGA known until now for digital homeowners insurance, is jumping into the commercial insurance market. The company’s initial focus in the space still involves residences, however.
The California-based startup said its expansion will focus on “targeted commercial insurance” customers. Its first product in the space is a tailored homeowners association (HOA) product. That coverage is designed to provide a streamlined claims process and personalized insurance with features including data-driven underwriting, satellite and aerial imagery, and consideration for the specific HOA and board members.
Rick McCathron, Hippo’s president, said that the company’s HOA product is designed to address a lack of cohesive coverage options in the sector.
“By bringing a new approach to an industry that’s been fragmented and developing new proactive solutions for the homeowner association, we can ensure that communities have highly tailored and personalized coverage and that our customers are well cared for and protected,” McCathron said in prepared remarks. “Backed by our team of insurance veterans, we will modernize the commercial insurance experience while preserving the individual communities’ unique coverage and risk needs.”
Initially, the coverage is available in Arizona, but it will expand to Nevada, Oregon, Utah, Colorado, Michigan, Illinois and Tennessee later this year. Plans also call for launching additional commercial programs in the coming months targeting condominium associations and single-family rentals. Hippo added it is also working to develop added offerings that will include community services and smart devices to help boost protection for commercial customers.
According to Hippo, its commercial insurance will include the most current catastrophe models, and modern coverage with higher limits set for items not included in traditional personal or traditional commercial lines cover, such as pools, landscaping, private roads, retaining walls and elevator collision. Package options will also include features such as commercial property, fidelity, inland marine, data breaches, general liability, combined directors and officers and employment practices liability, hired and non-owned auto liability with physical damage coverage, and available excess liability covering underlying coverage parts.
Hippo’s expansion into commercial insurance comes after the company disclosed plans earlier this year to hit the public markets by merging with a Special Purpose Acquisition Company. The startup will be acquired by Reinvent Technology Partners Z in a deal that values the company at $5 billion. Initial plans called for closing the deal in mid-2021.