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

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

#61

Post by phonon »

An actually honest(-ish) insurance launch! Congratulations!

Competing on better pricing/underwriting models, and modernized, streamlined endorsements of ISO forms is fine. (I can't speak to whether the actuarial and underwriting work you did is up to snuff, but will give the benefit of the doubt, and TransRe is a good company, as is Milliman). You probably didn't need to create your own PAS (hint...you've just just started! MTE are not the only hard parts...) but enjoy the challenge.

If you're doing by-peril, bit surprised you didn't try to collaborate with AAIS, instead of copying CAIC? AAIS loves working with startups, and they're a non-profit, member-driven organization. (Btw, delete the CAIC references from https://www.goodcover.com/files/Goodcover_Policy_Sample_Full... )

Surprised (did you? I don't see it mentioned in your Filing Memorandum, which it definitely, definitely should be) you got approval for "Goodcover's Invitation Thank You Policy," pretty sure that won't fly in NY. Your advertising should really say "up to" everywhere, as you (and everyone knowledgeable) knows you are not selling steeply discounted insurance across the board. (As you quite rightly admit, Lemonade's "$5/month" (including instalment fees!) offer is a loss leader, even if they can't admit that.)

Looks like your TOS was updated, still not happy about the blanket ownership of customer data terms.

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

#62

Post by sraquo »

pmiller2 wrote: post #60
sraquo wrote: post #57

Earlier quoted context omitted.

(Goodcover dev here) It could be, along with say family size. But the UX cost of asking such questions is real, especially on an insurance application form. People get worried why we want to know such things so early on. Today we're able to provide a pretty good estimate with no personal details, nothing but a zip code in fact. We might work the zip code into temp housing default at some point, but it's not without i…

Sounds to me like an A/B test is warranted.

We do plan to do some tests, to the extent that we're able. We can A/B test much of the UI but we can't A/B test the insurance terms that we give people because that would require different pricing and thus different rating, which needs to be the same for everyone legally (also any pricing changes require approvals regardless of A/B testing or not).

Don't take this too literally as I'm just a developer, not a licensed insurance agent. But this kind of thing is harder in a heavily regulated business such as ours.

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

#63

Post by phonon »

staticautomatic wrote: post #36
jermaustin1 wrote: post #27

Earlier quoted context omitted.

> 100k might last 4 years ALE is not meant to permanently replace your apartment. I don't understand why you would be expecting 4 years of living expenses to be covered in the case of your apartment burning down. I wouldn't even expect 4 months. It is meant to help you get back on your feet, and go to a hotel for the immediate aftermath while you look for a new place to stay. You lost your apartment, not your entire…

You're misunderstanding both my point and how ALE works. Among other things: 1. ALE time limits are set by the policy unless otherwise defined by statute. In CA, for example, if you are displaced due to a natural disaster, your ALE coverage remains in place by law "for a period of no less than 24 months from the inception of the loss" (CA Insurance Code 2051.5(b)(2)) 2. There is no statutory ALE time limit on uninsur…

ALE for a home vs. renting are conceptually extremely different, sorry. ALE for a home covers the fact that it may take many months to rebuild, particularly after a natural catastrophe. ALE for a rental means how long it takes the renter to find suitable long-term housing somewhere else.

If the underlying issue here is that you're in some sort of rent controlled situation, and market rents in your area are way way higher than what you pay, and you expect the insurance company to pay ALE until you find another rent controlled apartment--sorry. You're not going to find many insurers that will plan on covering that.

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

#64

Post by toomuchtodo »

vgeek wrote: post #14
arjie wrote: post #7

This pricing is way better than other insurers but I just signed up for Lemonade. How do I know you can pay out? Also, the fact that you can give me a quote without an email address is amazing. I’ll sign up but it’ll be a year before you see anything because I just got Lemonade.

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 have State Farm and found Lemonade renter’s insurance to be more expensive for the same coverage levels. YMMV.

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

#65

Post by eaenki »

Hi!

I have 3 questions:

1) how much, in total, excluding your own hours, did the regulatory compliance stuff cost to launch just 1 product in 1 state?

2) how much would it cost to launch that same product in 50 states?

3) since you didn’t want to have x3 or more sitting in the bank you chose to go with a re-insurer. And that took a year. Why was it that hard? Did you need a connection?

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

#67

Post by jniedrauer »

Etheryte wrote: post #4

While I understand you've clearly run the numbers, it still boggles my mind that you can cover $100,000 with $5/mo, and even more for higher tiers. It's fairly hard to see how it all works out, could you maybe ELI5?

It isn't that unusual. This is about what I'm paying USAA for similar coverage. The reality is my apartment will probably never burn down within my lifetime. In a decade, I will have paid $600. So they only need 167 out of 168 people to make it a decade without burning their apartment down to break even.

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

#68

Post by staticautomatic »

phonon wrote: post #63
staticautomatic wrote: post #36

Earlier quoted context omitted.

You're misunderstanding both my point and how ALE works. Among other things: 1. ALE time limits are set by the policy unless otherwise defined by statute. In CA, for example, if you are displaced due to a natural disaster, your ALE coverage remains in place by law "for a period of no less than 24 months from the inception of the loss" (CA Insurance Code 2051.5(b)(2)) 2. There is no statutory ALE time limit on uninsur…

ALE for a home vs. renting are conceptually extremely different, sorry. ALE for a home covers the fact that it may take many months to rebuild, particularly after a natural catastrophe. ALE for a rental means how long it takes the renter to find suitable long-term housing somewhere else . If the underlying issue here is that you're in some sort of rent controlled situation, and market rents in your area are way way h…

You are incorrect.

A) There's no point in quibbling over what "temporary" or "permanent" means because the definition varies from policy to policy. There is no other source of truth unless it's in a legal statute.

B) With respect to the scenario I'm talking about, you are both factually and legally wrong. Again, I know this because I work on property damage lawsuits for a living. If my rent-controlled apartment is damaged in a fire and I have to temporarily relocate to another more expensive one for 3 years while I wait for mine to be rebuilt, the additional living expense I pay in the form of increased rent during that period is absolutely something ALE is intended to, and does in fact, cover.

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