Home insurtech Kin Insurance has introduced a new home insurance option in California to address the growing coverage gap in high-risk areas.
California has struggled with a shrinking insurance market due to wildfires and other natural disasters. Even before recent wildfires, traditional insurers had been leaving the state for years.
Senate reports show non-renewal rates more than tripled last year, leaving tens of thousands of residents without coverage. Many homeowners either went without insurance or turned to the California FAIR Plan, the state’s insurer of last resort.
FAIR Plan coverage in areas like the Palisades quadrupled before recent disasters, highlighting the demand for alternatives.
Kin CEO and Founder Sean Harper said increased weather volatility is a major challenge, and insurance plays a key role. He pushed back against the idea that California is uninsurable, arguing that with the right technology, analytics, and business models, coverage remains possible.
Kin’s direct-to-consumer approach and fast issue resolution allow it to operate effectively in high-risk areas. By using advanced data analytics, Kin assesses a property’s ability to withstand extreme hazards, enabling it to offer coverage where traditional insurers have exited.
The company said its California program demonstrates this approach in action.
As of February 2024, Kin Insurance has raised approximately $458 mn in total funding. The company’s valuation surpassed $1 bn in September 2023, achieving unicorn status.
In March 2022, Kin secured $82 mn in the first close of its Series D round, with additional commitments totaling $18 mn. A subsequent Series D extension in September 2023 brought in an additional $33 mn, led by QED Investors. In February 2024, Kin announced a $15 mn funding round led by Activate Capital, bringing its total funding to approximately $458 mn.
Investors in Kin include QED Investors, Hudson Structured Capital Management, August Capital, Geodesic Capital, and Activate Capital.
