A Different Path To InsurTech Innovation

To those insurance entrepreneurs, innovators, and executives who fear that an InsurTech venture capitalist, a publicist, and a Silicon Valley address are required to innovate…. FEAR NOT!

Success in the insurance industry is only limited by your persistence, vision, and efforts. I know this because Effective Coverage outsold Lemonade, the high flying InsurTech startup, in December 2016.

The team at Lemonade has garnered a tremendous amount of attention over the past 24 months. They have raised sixty million dollars, created a sales bot named Maya, and even paid a claim for a stolen jacket in just a few seconds.

From the latest Lemonade update…

“January 2017 started off with a bang! In the past week alone, we insured 410 new homes, almost the number of homes we covered throughout the entire month of December.”

In contrast, Effective Coverage sold well over a thousand policies in December. We officially outsold a firm that has raised $60,000,000 in venture capital.

The best news is, you can too!

Where to start

Effective was founded in 2007 and we went national in 2008. A combination of moonlighting through the early stages and a $50,000 seed investment got it done. It did not come easily, but persistence, vision, and effort has gotten us to where we are today.

Persistence — We started by selling one renters insurance policy a day. I still remember the days when my girlfriend, now my wife, would ask how many did you sell today? I would of course exaggerate the number by a healthy margin so would say “6 or 7 but tomorrow will be better.” Today… no exaggeration required.

Vision — Where will the industry be in 5 years? How will consumers transact business? What will the impact of automation and the internet of things have on the industry? Whatever you build, build it for the future. All questions that we asked in 2007 that led us to build what we have today. Now we ask the same questions, but on the Effective Coverage foundation so that the firm is strong in 2023!

Effort — I sold the first 2,500 policies myself. In between calls I drew up specifications for developers, called property managers in need of a renters insurance program, and sent proposals. Did I mention that Effective Coverage has been open seven days a week since day one?

When you have persistence, combined with vision and effort, these are the results. Apply those principles to your idea and innovation.

The Proof

At Effective Coverage we have always focused on providing value to both property managers and renters. Our proprietary software platform combined with real time quotes via www.EffectiveCoverage.com generate loyalty and contribute to continually increasing policy count.


We go where you go. From the beginning, Effective Coverage has offered policies across a wide geographic region. We recognized early in the era of digital distribution that we could provide more value to a very specific market by offering our services nationwide.

In the 4th quarter of 2016, Effective Coverage sold policies in 704 cities across America.


One easy way to generate short term growth is to invest heavily in paid search. However, taking the long term approach, the team at Effective Coverage invested in organic search by providing valuable content. Below, you will see how a simple search for “Brooklyn Renters Insurance” yields a top result for Effective Coverage.

Warning… This strategy takes LOADS of persistence and effort!

Know Your Customer

The Effective Coverage customer base skews heavily toward the 34 and under demographic, Millennials, making up 60% of the overall client base. Despite their age and the fact that they have grown up in the digital era, a significant portion still choose to purchase a policy over the phone. We ensure that our agents are available to answer questions for the 40% of insureds who are looking for consultation throughout the process.

Other Services

Effective Coverage offers a tracking platform simplifying things for landlords who need to enforce an insurance requirement. It is a way for us to solidify partnerships and to offer value in the process. The intelligence gleaned from that portfolio shows just how dominant State Farm, Allstate, and Travelers are in this space. Those 3 firms making up 58% of the renters insurance policies sold by the top 10 carriers tracked by Effective Coverage.

2017 — Push Forward!

Success in insurance does not automatically beget more success. It does, however, give you an amazing platform to innovate. In 2017, Effective Coverage will continue to focus on profitable growth while increasing the already significant investments being made in technology, marketing, and customer support.

To learn more about Effective Coverage and the valuable products and services we offer please visit Effective Coverage.

Like what you read? Give Eric Narcisco a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.