Home insurance is one of those industries that has been around for decades, and it will stay relevant for years to come. But Chicago-based startup Kin Insurance wants to create an insurance business that is truly built for the future, and it’s doing so by leveraging the latest tech.
This week, Kin Insurance announced that it raised $63.9 million in its Series C funding round, led by Senator Investment Group and Hudson Structured Capital Management. The news was first reported by Crunchbase, and later confirmed to Built In by the company.
This new funding follows the company’s $35 million Series B from August 2020, and its $47 million round from 2019. Altogether, the company has raised over $116 million in funding.
What makes Kin unique is its ability to use data and technology to offer good coverage at a competitive price. This is especially useful for homes that are hard to find coverage for — typically homes that are older or in high-risk areas. All homes get older and degrade, so that’s nothing new. But there is an increasing number of homes in high-risk areas due to severe weather and the effects of climate change.
Look no further than California to see why this is important. Over the past few years there have been several destructive wildfires that have decimated entire towns. Experts expect it to continue, or even get worse. But because these fires are so common, some insurance companies refuse to cover certain areas. That means if you lose your home in a wildfire, there won’t be an insurance company to help you get back on your feet.
Kin Insurance offers home insurance knowing that constant natural threats are just part of the risk homeowners take if they live in certain areas. The company specializes in serving areas prone to natural disasters, like California, Louisiana and Florida. It’s hard for homeowners to get insurance in these areas, but Kin is able to provide it by relying on information from satellite imagery, online real estate data, government records, and building permits. This data informs Kin’s coverage, while keeping the cost as affordable as possible for the consumer.
This new funding will help Kin as it expands into new markets and grows the company. Part of this will involve hiring. According to Kin CEO Sean Harper, the company plans a hiring push for roles in data science, engineering and marketing.
“We raised funds because we’re going after a huge opportunity: To create a solution at the intersection of climate change and technology that disrupts a 100-plus-year-old insurance industry that hasn’t evolved from its founding business practices. We’ll use this funding for hiring and marketing. Specifically, we’re hiring about 100 people in all roles but with a focus on data science, engineering and marketing,” he told Built In.
Harper spoke to Built In last year when the company raised its Series B funding. He talked about why it was important to bring data and technology into such an old industry. You can read his thoughts here.