Goodcover
Goodcover, formerly known as Collective, is a fintech company based in San Francisco that specializes in providing affordable renters insurance and operates as a Managing General Agent.
Company History
Goodcover, originally known as 'Collective,' is a fintech company specializing in the insurance sub-industry. The company is a part of Y-Combinator's S17 batch and operates out of San Francisco, CA, USA. Located at 149 New Montgomery Street, 4th Floor, San Francisco, CA 94105, Goodcover is licensed to operate in multiple states, including AZ #3001513665, CA #0M20813, GA #224133, IL #3001797601, NV #3720512, NY #PC-1829582, OH #1473489, PA #1098780, and TX #2733601.
Services
Goodcover provides digital renters insurance designed to be 50% less expensive than traditional legacy insurance companies. The company's services include coverage for damage from neighboring floods, replacement cost coverage, all-risk coverage for high-value items like computers, and additional coverage for mold removal. Additionally, Goodcover offers an annual dividend of any money left over after meeting claims obligations.
Technological Innovations
Goodcover operates as a Managing General Agent (MGA) and employs advanced technology to streamline its insurance services. The company eliminates waste, reducing costs by approximately 25%. Its multiperil model allows for more granular risk pricing. Though 100% digital, Goodcover invests in technology to enable expert assistance for its members.
Business Model
Goodcover's business model focuses on cost-efficiency and member benefits. The government-approved pricing is on average 40-60% cheaper than that of competitors. The company also offers free insurance for members who invite others, effectively turning its marketing budget into savings for the community. Goodcover works with multi-billion dollar capital partners to ensure regulatory compliance, adequate claims capital, and emergency capacity for catastrophes.
Financial Stability
Goodcover ensures financial stability through partnerships with reinsurers that collectively have more than $20 billion in assets. These partnerships guarantee that members have access to sufficient financial resources in case of large-scale emergencies, confirming the company’s robust approach to risk management and member assurance.