Hippo Company Insurance Review 2021: Only Offers Homeowners Insurance, but Has Unique Offerings

A photo to accompany a review of Hippo insurance Illustration/NextAdvisor
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Hippo was founded in 2015 and is part of a new group of insurance companies, “insurtechs,” that use technology to streamline the insurance process. The company says customers can get quotes in 60 seconds, and a policy in five minutes. (You can’t, however, file online claims.) 

Hippo only offers homeowners and condo insurance, so if you’re looking to bundle home, auto and life insurance together, this company is not for you. Hippo is available in 36 states, with more coming soon.

Here’s what you need to know to decide if Hippo is the right insurance company for you. 

Hippo Company Home Insurance

Hippo says it’s one of the cheapest options in the market. It gives the same amount of coverage but for a lower premium when compared to other competitors. “You have a lot of options to choose from and that makes it quite unique as an experience,” says Quentin Coolen, CEO and co-founder of Waffle Labs, a broker that partners with Hippo to provide homeowners insurance to consumers.

One unique offering from Hippo is a complimentary smart home monitoring system. “Hippo is the only insurance provider that provides complimentary smart home devices to eligible customers,” said Marina Vaamonde, commercial real estate investor and founder of PropertyCashin, a real estate investment company. “Smart home devices help maintain property integrity and security, reducing the chances of needing to reimburse clients.”

Hippo offers a wide array of coverage options.

Types of Coverage

  • Dwelling coverage: Covers repair and rebuilding costs after a covered incident
  • Personal property coverage: Covers repair or replacement of your personal belongings after a covered peril.
  • Liability and medical payments coverage: Hippo helps pay for legal fees, settlements, and medical bills in the event you, your family members, or your pets cause injury or property damage to another person.
  • Loss of use coverage: Pays for alternative housing should your home become uninhabitable due to a covered peril.
  • Computers and home office coverage: Hippo offers four times the coverage limits for home office equipment than other providers.
  • Appliances and electronics coverage: Covers appliances, HVAC systems, water heaters, and televisions.
  • Water backup coverage: Covers damages if there is water backup or overflow from your sewers or drains.
  • Service line coverage: Covers accidents and wear and tear on gas, sewer, and water connections.
  • Enhanced rebuilding coverage: If your home is damaged in a catastrophic event, you may be eligible to receive a 25% increase in dwelling coverage to rebuild it.
  • Local ordinance changes: If there are changes in local ordinances that result in increased costs, this coverage can help cover the extra expense.
  • House cleaners and sitters: Covers babysitters, house cleaners, and other workers who help care for your home or family.
  • Full replacement cost: Covers the full replacement cost of your personal belongings, rather than the depreciated value.

Cost of Hippo Company Home Insurance

Hippo says policyholders can save up to 25% when compared to traditional home insurance providers. This is likely due to lower operating costs, since customers are able to get a quote and apply for a policy entirely online. 

NextAdvisor emailed Hippo for a personalized annual premium quote on homeowners insurance. For this policy, Hippo quoted $835 annually, or $69.58 a month, for a 30-year old first-time homebuyer.

The national average cost for homeowners insurance is $1,312 annually, according to Bankrate. But several individual factors determine your premium, including the age and condition of your home, your location, and your credit-based insurance score. The policy limits and endorsements you choose will also impact your insurance rate. 

Hippo Home Insurance Discounts

Not all discounts are available in every state, but some of the discounts that Hippo offers include:

  • Smart home discount: Not only does Hippo provide free smart home monitoring systems to eligible policyholders, but the provider also offers a discount of up to 15% on your premium for activating the system.
  • Early signing discount: If you sign up at least eight days before your policy starts, you’ll receive a discount.
  • New home discount: You can save up to 30% just for getting a policy for a new home
  • No-mortgage discount: If you own your home free and clear, you’ll receive a discount on your policy.
  • HOA discount: If you pay a homeowner’s association monthly assessments, you can get a discount on your home insurance policy.

Hippo Insurance Ratings

Hippo is not rated for customer satisfaction by J.D. Power, and customer reviews on third-party websites are mixed. Its policies are underwritten by Topa Insurance Company and Spinnaker Insurance Company. Here’s how those insurers stack up:

J.D. Power: Not rated

NAIC: 

  • Not rated

Better Business Bureau

  • A

A.M. Best: 

  • A-

Hippo Insurance Company Pros and Cons

Pros

  • Online quotes in 60 seconds

  • Affordable premiums

  • Customizable coverage, due to its wide array of choices

  • Complimentary smart home monitoring system

  • 24/7 customer support

  • Hippo Home Care

Cons

  • Only offers home insurance

  • No online claims

  • Not available in all states

  • Not rated by J.D. Power

Other Policies Offered by Hippo Insurance Company

Even though Hippo only offers homeowners and condo insurance, it partners with a company called Metromile, which does auto insurance. Hippo customers can get discounts there. It also partners with other companies to provide options for earthquake, wind, and flood insurance to customers. 

Bottom Line

Hippo offers a wide range of home insurance coverage, and its streamlined technology may make it easier to request a quote or sign up for a policy. However, policyholders receiving a loyalty discount from another insurer may find their current policy more affordable. It’s important to compare quotes from Hippo and other homeowners insurance companies before making your decision. 

Frequently Asked Questions

What Does Hippo Home Insurance Cover?

In addition to standard coverages such as liability, dwelling, personal property, and loss of use coverage, Hippo offers computer and home office coverage, water backup coverage, protection for local ordinance changes, and coverage for workers in your home. These are all included in Hippo’s standard package. Hippo also offers several endorsements that can be added for an extra cost.

Is Hippo Available in All States?

No. Hippo currently sells homeowners insurance in 36 states. However, the company plans to expand to offer nationwide coverage.

Is Hippo Insurance Legit?

Yes. Hippo’s underwriters have excellent financial strength ratings, and the company has hundreds of thousands of customers.