Rent payment insurance startup LeaseLock has raised $1m in a Seed round led by American Family Ventures, the venture arm of American Family Insurance.
The company aims to help renters get approved for properties through technology designed to be better at approving risk than that used by traditional property managers.
LeaseLock approval means renters do not require a cosigner or an extra security deposit while also improving their credit score.
Approved applicants also pay a fee that is translated into an insurance policy protecting the property for all rent payments.
The process allows property managers to approve applications more efficiently than through traditional credit checking means.
The company claims to have enrolled property managers representing more than 500,000 units with properties across 14 states.
American Family Ventures managing director Dan Reed said, “The structure and value proposition of the LeaseLock product are truly unique, and make this program the first of its kind in market.
“Our investment in the company further demonstrates American Family’s commitment to providing policyholders high-quality products that are both innovative and customer-focused.”
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