Founders Everywhere: Adarsh Rachmale
Adarsh Rachmale is the co-founder and CEO CoverTree, a Property and Casualty Insurtech Managing General Agent focused on Middle America and specialty insurance lines.
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Manufactured homes have been a key housing option in the U.S. since the 1950s and are becoming more relevant due to rising housing costs. As more people move to Middle America, and seek affordable, energy-efficient housing, manufactured homes offer a viable solution. The problem is that these properties, their owners, and renters, are often underserved by traditional insurers. Michigan-based startup CoverTree, leverages advanced technology to provide efficient, accurate, and affordable insurance solutions for factory-built homes including: modular homes, tiny homes, and ADUs. They’re addressing a significant gap in the market, ensuring that more Americans have access to the protection they need for their homes and investments.
CoverTree was co-founded by Michigan-natives Adarsh Rachmale, CEO, Divyansh Sharma, CTO, and Rishie Modi, COO. Adarsh and Divyansh are best friends and were roommates at the University of Michigan, while Rishie is one of Adarsh’s good family friends from growing up. Adarsh and Divyansh had great tech jobs in San Francisco, but having grown up in Middle America, they wanted to apply technology to traditional industries that are lacking innovation. They packed up and moved back to Michigan to learn all they could about the industry, including working at an insurance brokerage. Adarsh even took a road trip, staying in manufactured homes across four different states. This hands-on exploration and deep dive into the sector ultimately led to the creation of CoverTree.
They keep you covered, wherever you’re planted!
What’s CoverTree’s North Star?
We're focused on being the Insurtech for Middle America. Today, we specialize in manufactured home insurance and believe it should be easy, modern, and affordable. Manufactured homes is our wedge into the market–to eventually cover all insurance needs for Middle America.
What inspired you to build CoverTree?
We’re from Michigan, a state known for its strong presence in traditional industries. It’s home to the largest insurer, the second-largest homebuilder and one in three manufactured home communities in the country are owned by a Michigander. We noticed that traditional insurers often focus on standard lines of business, like homeowners and auto insurance, in major metro areas. We decided to apply the same Insurtech concept to lines of business that genuinely needed technological advancements. We were seeing changes happening in the housing market and manufactured homes became a more attractive option in need of accessible and affordable property and casualty (P/C) insurance. Managing General Agent (MGA), CoverTree handles underwriting, pricing, sales, service, and distribution. We currently operate in 15 states and are expanding rapidly. .
Why is CoverTree going to win?
We're currently the fastest-growing company in the manufactured housing insurance segment. Traditional agencies often struggle to handle manufactured home insurance efficiently. By specializing, we offer a better, quicker, and more knowledgeable service. Our underwriting process is largely automated, and we use unique and advanced data sets for more accurate pricing. This approach ensures cost-effective premiums based on customer risk. We also have diverse distribution channels, partnering with community owner-operators and lenders to streamline the insurance process.
How does CoverTree inspire “customer love”?
Our customers appreciate the focused, efficient, and affordable services we offer. They can purchase plans online and we offer savings up to 40%. We’re excited about the fact that currently we insure about 3-4% of all manufactured homes in Arizona, so if you drive down the street and pass 20 homes, odds are, we insure one of them.
What drives you into the startup battle day after day?
I believe in spectacular and at least five times per day I say, “Spectacular outcomes are only warranted by spectacular work.” We all go to sleep expecting and dreaming about a spectacular outcome, but that requires spectacular work every single day, in the mundane, in the basics, and in the advanced.
Fun fact:I love cars and motorcycles. I have a vintage 1977 Ford F250 that I bought during college for a few grand. I'm a Motor City kid!
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