Atlanta-based insurtech company Sola has completed its seed funding round, securing $3.7m in total funding to enhance its natural disaster insurance offerings for homeowners and businesses.
This capital will be channelled towards the growth of Sola’s wind and hail insurance product, which aims to reduce high deductibles and out-of-pocket expenses related to wind, hail and tornado damage.
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The investment round was led by FINTOP Capital, with Overline, 10vc, Karuna VC and insurance industry executives also contributing to the fundraise.
Sola is addressing dissatisfaction among homeowners with the current home insurance market with rising premiums and coverage denials.
The company’s insurance model is said to offer “consistent and affordable” premiums annually.
Sola plans to refine its agent platform to facilitate quoting and policy binding, alongside expanding its presence to additional high-risk states.
It utilises weather data and automated claims processing, ensuring payouts for policyholders within days.
The company’s network includes partnerships with mortgage companies and a multitude of independent agencies, and is said to make affordable and dependable homeownership insurance more accessible across the US.
Sola CEO and co-founder Wesley Pergament said: “At Sola, we are building a lifeline for homeowners who have incredibly high premiums and deductibles. With our new wind and hail product, we are tackling these challenges head-on and delivering much needed relief to more homeowners.”
At Sola, the amount of coverage is determined based on the Enhanced Fujita scale as determined by the National Weather Service for the specific location of the residence.
The company’s website indicates that its insurance services are presently available in 15 US states, with plans to expand into additional markets.
