CoverTree in Detroit Secures $13M to Advance Manufactured Home Insurance

CoverTree, a Detroit-based insurtech company specializing in manufactured home insurance solutions, has completed a $13 million Series A funding round led by Portage in New York.
Manufactured home insurance company CoverTree in Detroit has completed a $13 million Series A funding round. // Stock photo

CoverTree, a Detroit-based  insurtech company specializing in manufactured home insurance solutions, has completed a $13 million Series A funding round led by Portage in New York.

Other investors included AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and others.

To date, CoverTree has raised $23 million to provide affordable insurance solutions to the growing manufactured housing economy. This Series A investment underscores the growing demand for modernized insurance products in the ever-evolving homeownership industry, according to company officials.

CoverTree will use the funds to further build out an enterprise suite including the launch of Maple, a resident insurance management software for property managers, Bonsai a binding and underwriting platform for independent agents and lenders, and Sequoia an automated underwriting and quoting system for insurance book conversions.

“With the continually changing homeownership industry, we are excited to continue expanding our services to the growing manufactured housing industry: we believe this is the future of how all Americans will live,” says Adarsh Rachmale, co-founder and CEO of CoverTree.

“This investment is a testament to the value we bring to homeowners by redefining the insurance experience. With these funds, we will continue to innovate, expand our reach, and ultimately provide even more individuals with peace of mind through our high tech and accurate home insurance solutions.”

Upon the completion of the investment, Portage’s co-founder and CEO, Adam Felesky, also joined the board.

“CoverTree’s focused approach on manufactured home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche markets,” says Felesky. “With a growing market and the need for affordable housing greater than ever, we are confident in CoverTree’s ability to drive positive change in the insurance landscape and are excited to support their journey.”

As the first digital insurance offering for manufactured homes, CoverTree says its commitment to customer satisfaction has positioned the company as a leading insurtech, setting new standards for transparency, simplicity, and personalization in this category.

The Series A funding also will assist CoverTree in investing in product development, scale its operations, and attract top talent to continue its mission of reimagining home insurance.

Today, more than 22 million Americans are living in manufactured homes in the United States, and 11 percent of new single-family homes in 2022 were manufactured homes, according to CoverTree.