Launch HN: Goodcover (YC S17) – Cooperative renters insurance for half the price

Your maximum ALE limit in my zip code is $29K.

By way of background, I consult on litigation for a living. I may not be the Farmers guy but I've seen a thing or two when it comes to displacements (evictions, mold, fires/explosions, natural disasters, etc.). Here are some reasons and scenarios explaining why $29K is likely to be woefully inadequate in the areas I mentioned:

1. You're going to eat up a chunk of your ALE coverage in the immediate aftermath of your displacement and will never find permanent relocation immediately.

2. You have to assume that the claims reps on the subro or defense side (or both) are going to fight you on paying out limits.

3. You have to assume that you'll need to retain an attorney. With a standard contingency fee of 30%, your maximum ALE recovery is going to be 70% of your ALE limit, which in Goodcover's case is $20,300.

4. You have to assume that there will not be an entity against which you can pursue an uninsured loss above your limit (for various reasons).

5. You are highly likely face a substantial monthly rent increase, including the loss of financially tangible amenities, when you relocate. Full stop. That increase is likely to be indefinite.

6. Supposing you are lucky-- for example you're in a rent-controlled unit in an area governed by a law which requires the landlord to offer back a unit under your original lease terms upon rehab/rebuild-- you are highly likely to hit your ALE limit anyway for a variety of reasons. A) There might be no rebuild, in which case your rent increase will be indefinite. B) Your landlord might violate the requirement to re-lease under the original terms, in which case your rent increase will be indefinite. C) A rehab/rebuild could easily take 2-3 years (especially in a heavily regulated metro area) if the building damage is extensive, in which case you may well exhaust your coverage before you can move back in.

I hadn't heard of Lemonade and it is 30% of the price of State Farm for the same coverage levels, and is way more transparent for electronics and cameras. Thank you for mentioning.

I just signed up for Goodcover. The cost-saving and how simple you make it to switch from Lemonade is truly mind-blowing.

Whether or not your max ALE limit is "normal" is beside the point: my experience tells me that the amount is insufficient to cover one's probable downside risk in a major metro area, especially for unit larger than 1 bedroom.

I live in SF. My personal best case scenario in the event of a permanent relocation (insurer freely pays out limits without me having to hire an attorney, I use none of my ALE coverage in the immediate aftermath of my displacement, I relocate to a rent-controlled apartment with the same amenities), is that if I'm extremely lucky, $100K might last me 4 years before I have to leave SF entirely.

Thanks!! Sure, will do.