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Luko raises $22 million to improve home insurance

Romain Dillet

French startup Luko has raised a $22 million Series A round led by Accel (€20 million). Founders Fund and Speedinvest are also participating in today’s funding round.

When you rent a place in France, you have to provide a certificate to your landlord saying that you are covered with a home insurance product. And, of course, you might want to insure your place if you own it.

While the market is huge, legacy insurance companies still dominate it. That’s why Luko wants to shake things up in three different ways.

First, it’s hard to sign up to home insurance in France. It usually involves a lot of emails, a printer, some signatures, etc. It can quickly add up if you want to change your coverage level or add some options.

As expected, Luko’s signup process is pretty straightforward. You fill out a form on the company’s website and you get an insurance certificate minutes later.

Luko partners with Munich Re (via Great Lakes Insurance) and Swiss Re (via La Parisienne Assurances) to issue insurance contracts. So far, 15,000 people have signed up to Luko.

Second, if there’s some water damage or a fire, it can take a lot of time to get it fixed. Worse, if somebody breaks into your place, you’re not going to get your money back that quickly.

Luko wants to speed things up. You can make a claim via chat, over the phone or with a video call using the mobile app. The company tries its best to detect fraud and pay a claim as quickly as possible. Luko also recently announced an integration with Lydia, a popular peer-to-peer payment app in France, so that your payment is instant.

Third, Luko has a bold vision to make home insurance even more effective. The startup wants to detect issues before it’s too late. For instance, you could imagine receiving a water meter from Luko to detect leaks, or a door sensor to detect when somebody is trying to get in. We’ll find out if people actually want to put connected objects everywhere.

Finally, Luko has partnered with a handful of nonprofits to redistribute some of its revenue — it has received the BCorp certification. The startup makes revenue by taking a flat fee on your monthly subscription. If there’s money left at the end of the year, Luko donates it to charities. Investors signed a pledge so that Luko doesn’t trade this model for growth.