Hippo Insurance and Hippo Inspection Protection

Table of Contents:

Insurtech Businesses

Hippo is part of a growing trend in ‘insurance’ businesses. A combination of insurance and technology, Insurtech refers to new insurance technology that improves the customer experience, simplifies policy management, and increases competition. There are currently around 1,500 Insurtech businesses in the U.S.

Insurtech is the new technology transforming the insurance industry, reducing costs for customers and insurance companies, improving efficiency, and enhancing customer satisfaction.

The companies make buying all types of insurance easier and more convenient, from consumer products to small business insurance. Customers can now research, compare policies, and purchase online whenever they want without physically visiting a local agent.

Insurtech Transforming the Insurance Industry

Insurtech is now part of the mainstream insurance industry and has led to the development of simplified insurance products and consumer-friendly services. Hippo is just one of many successful insurance companies that have taken advantage of new technologies. Insurtech has influenced personal insurance due to tracking phone apps, auto-monitoring devices, and other tracking tools.

The technology, considered disruptive to the industry, has piqued the interest of venture capitalists exploring new options to improve insurance. One example of the use of Insurtech includes dynamic-pricing models for policies using data streams from devices and adjusting pricing based on market conditions and customer behavior.

Components of Insurtech

There are two main ways businesses implement Insurtech: technology-based components and solutions-based components.

Here are some of the technology-based components that are currently used in the Insurtech field:

• Artificial intelligence (AI)
• Machine learning (ML)
• Internet of Things (IoT)
• Smartphone apps
• Drones
• Blockchain technology
• Advanced Analytics

There are also several solutions-based components:

• Appetite solutions
• Data solutions
• Payment solutions
• Quoting solutions

Applications of Insurtech

Hippo uses many key applications to implement its insurance services. Here are some key Insurtech applications that many insurance companies use:

Verification of Customer Identity

Insurance companies have to collect the data necessary to confirm the identity of their customers. This entails a large intake of data from all customers. Insurtech helps with managing this data with software.

Managing Claims

You can use the technology to create a standard claims document reviewed by underwriters in real-time. Also, some parts of the contracts can be automated with smart features.

Smart Contract Formulation

These contracts have automated functions that make it easy to authenticate, enforce and negotiate the documents. For example, in a life insurance policy payout, the system will look through online death registers, determine the claim’s validity, etc. As a result, smart contracts help reduce fraud.

Finding Fraud and Preventing Risk

Many insurance claims are fraudulent. As a result, insurance companies invest money to manage fraud. Insurtech helps detect fraud and eliminate its chances with a decentralized digital data center.

Processing of Payments

Insurance companies have the ability to streamline premiums and claims. Automating payments with tracking of data supports this process.

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Benefits of Insurtech

The benefits of Insurtech are paramount for customers and insurers:

For the Customer

• Empowering the customer
• Convenience and ease of access
• Increased security and customization

For Insurance Providers

Insurtech saves the insurance industry time and money:

• Keep fraud at bay
• Make underwriting simple by automating information collection and assimilation into records.
• Introduce newer methods of insurance distribution
• Share new products with smart contracts that are more in-depth than traditional claims.
• Automate the claims process reducing errors and automatically enforcing contracts

Hippo Home Insurance

With Insurtech, Hippo offers one of the cheapest home insurance options in the market. It gives the same amount of coverage as traditional insurance but for a lower premium compared to other competitors. Also, with the use of technology, the company expedites the homeowner’s insurance process by collecting data online on the home’s condition and value.

Additionally, a unique offering from Hippo is a complimentary smart home monitoring system. Hippo is one of the few homeowners insurance companies to provide this system.

Hippo also offers a wide range of coverage options.

Types of coverage include:

• Coverage of personal property: Covers replacement of your personal belongings after a covered peril.
• Coverage of your dwelling: Covers repair and rebuilding costs after a covered incident
• Coverage for liability and medical payments: Hippo helps pay for legal fees, settlements, and medical bills if you, your family members, or your pets injure or damage property or another person.

• Coverage of loss: Pays for alternative housing should your home become uninhabitable due to a covered peril.
• Coverage of computers and home office: Hippo offers four times the coverage limits for home office equipment than other providers.
• Coverage of appliances and electronics: Covers appliances, HVAC systems, water heaters, and televisions.
• Coverage of water backups: Covers damages if there is water backup or overflow from your sewers or drains.
• Coverage of service lines: Covers accidents and wear and tear on gas, sewer, and water connections.
• Coverage of enhanced rebuilding: If your home is damaged in a catastrophic event, you may be eligible to receive a 25% increase in dwelling coverage to rebuild it.
• Changes to local ordinances: If changes in local ordinances result in increased costs, this coverage can help cover the extra expense.
• House sitters and cleaners: Covers babysitters, house cleaners, and other workers who help care for your home or family.
• Cost of full replacement: Covers the total replacement cost of your personal belongings rather than the depreciated value.

Cost of Hippo Home Insurance

Hippo policyholders can save up to 25% on their homeowner’s insurance compared to traditional insurance. The cost savings come from lower operating costs as customers get a quote and apply for a policy entirely through the internet.

The national average cost for homeowners insurance varies by several factors, including the age and condition of your home, the location of your home, and your insurance score based on your credit history. In addition, the policy limits and endorsements you choose will also impact your insurance rate.

Hippo Home Insurance Discounts

Hippo insurance offers several discounts. Many vary by state, but here are some of the savings:

• Discount for early signing: Signing up a minimum of eight days before your policy starts will give you a discount.

• Discount for a smart home: Hippo offers free smart home monitoring and a discount of up to 15% on your premium for activating the system.

• Discount for a new home: Hippo will help you save up to 30% just for getting a policy for a new home

• Discount for no mortgage: You receive a discount if you own your home free and clear.

• Discount based on HOA: You receive a discount if you pay monthly homeowner’s association dues.

Hippo Insurance Ratings

Hippo has several top-tier ratings. However, its not rated by J.D. Power, one of the top rating sites. The company’s policies are underwritten by Topa Insurance Company and Spinnaker Insurance Company.

Here’s how those insurers stack up:

• J.D. Power: Not rated
• NAIC: Not rated
• Better Business Bureau: A
• A.M. Best: A-

Hippo Insurance Company Positives and Negatives

Positives

Complimentary smart home monitoring system

• Quotes online in 60 seconds
• Affordable premiums
• Coverage that is customizable with a wide range of options
• 24/7 customer support
• Hippo Home Care

Negatives

• Home insurance is the only offering.
• Claims cannot be filed online.

J.D. Power does not rate Hippo.

• Hippo is not available in all states
• in the U.S.

Other Policies Offered by Hippo Insurance Company

Hippo only offers homeowners insurance and condominium coverage. However, the company partners with Metromile, an auto insurance agency. Hippo customers can receive discounts on their auto coverage through this business. Other partnerships include insurance companies covering earthquakes, floods, and other natural disasters.

Frequently Asked Questions

What Does Hippo Home Insurance Cover?

Hippo coverage is the same as standard homeowner’s insurance coverage, including liability, dwelling, personal property, and loss of coverage. Additionally, Hippo offers computer and home office coverage, water backup coverage, protection for local ordinance changes, and coverage for workers in your home. The standard package includes all of these coverages with several endorsements that can be added for additional costs.

Is Hippo Available in All States?

Hippo is currently available in 36 states with plans for expansion nationwide.

Is Hippo a legitimate business?

Yes, Hippo is a legitimate business. The company has strong financial ratings and several hundred thousand customers.

What makes Hippo Insurance unique?

Hippo offers unique benefits on a modern platform. Hippo home insurance combines low rates with great coverage, which is not common with other homeowners insurance providers. In addition, although Hippo doesn’t have face-to-face customer support, its team is available by phone 24 hours a day, every weekday.

Who owns Hippo Insurance?

Hippo Insurance was founded in 2015 by Israelis Assaf Wand and Eyal Navon. In November of 2020, the company secured a $350 million investment from Japan’s Mitsui Sumitomo Insurance Company at a valuation of $3 billion.

Hippo doesn’t have any Israeli employees, and its Israeli founders live in the U.S. It does have Israeli institutional investors like Cali Insurance, Psagot Investment House, Poalim Capital Markets, and VC fund FINTLV.

Who is Hippo Insurance underwritten by?

Hippo policies are underwritten by Canopius U.S. Insurance, Spinnaker Insurance Company, and Topa Insurance Company. All three companies have earned a superior financial strength rating with AM Best.

What states is Hippo Insurance in?

Hippo has some robust coverage options — even with a base policy — with more modern perks, including additional coverage for home electronics and extended replacement cost coverage included with every policy. Hippo home coverage is currently available in Alabama, Arizona, California, Colorado, Georgia, Illinois, Indiana, Maryland, Minnesota, Mississippi, Missouri, Nevada, New Mexico, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Wisconsin. Policies are underwritten by insurance partners Topa and Spinnaker.

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How is Hippo Insurance rated?

Hippo insurance has several A ratings, including:

• J.D. Power: Not rated
• NAIC: Not rated
• Better Business Bureau: A
• A.M. Best: A-

What does Hippo Insurance cover?

Hippo insurance covers the structure of your home, personal belongings, and liability. However, home insurance does not cover natural disasters like earthquakes and flooding or other home issues like mold growth or drainage backup.

Hippo insurance offers property coverage and liability coverage.

Property coverage includes:

• Dwelling
• Other structures
• Personal contents
• Loss of use

Liability coverage includes:

• Personal liability
• Medical payments to others

Does Hippo Home Insurance cover fire?

Homeowners’ insurance, including Hippo insurance, covers accidental fire. This does not include arson or intentional fires set in the house.

Where is Hippo Insurance located?

Hippo is an insurtech (Unicorn!) start-up based in Palo Alto with operations in Austin, Texas.

Summary

Hippo is one of many Insurtech businesses leveraging technology to simplify homeowners’ and insurance agents’ insurance buying and selling process. However, the company only offers homeowners insurance and no bundling options for auto and other insurance types for a discount. Therefore, it is essential to review and compare quotes for multiple homeowners insurance companies before making a purchase decision. As an alternative, you can look to online FSBO companies like Richr.com who offer bundles that include up to 1% cash back, title, insurance, and financing.