Ally Financial will begin offering home insurance policies through a partnership with the insurance provider Hippo, the two companies announced Wednesday, August 11.
Hippo will underwrite the policies, while the Ally will put up the money to back them — to the tune of $500 million in the beginning.
Hippo President Rick McCathron said the agreement will double his company’s underwriting capacity and give it extra capital to upgrade its services and technology.
“As we are a fast-growing company, it’s very important for us to have plenty of underwriting capacity to support our growth,” McCathron said, noting the potential for collaboration with Ally was possible in the future.
Read More: Ally Financial strikes home insurance partnership with Hippo
The partnership will see Ally, which thus far has only sold car insurance, offering home insurance in 10 states before going nationwide.
Also on Wednesday, Hippo was also due to announce a fronting carrier agreement with Incline P&C Group, a Texas-based insurance company. That deal will give Incline customers access to Hippo’s home protection and maintenance offerings.
The announcements come just weeks after Hippo launched a new policy for homeowners associations, while also unveiling plans for insurance that would cover condominium associations and single-family rentals as well as other possible customers.
Related: Hippo To Expand Insurance To Include Homeowners Association Policies
In May, the company partnered with the online insurance and pay-per-mile vehicle insurance company Metromile to provide a multipolicy discount on car and homeowners insurance.
The arrangement gives drivers and homeowners the ability to buy pay-per-mile car insurance from Metromile and home insurance from Hippo, with the chance to save up to 15 percent on both plans if they are bundled.
Founded in 2015, Hippo provides home insurance for customers in 37 states, with more due to be added. As noted in past PYMNTS reporting, Hippo’s business model is meant to disrupt the ways that homeowners insurance is offered. The company built the tools and infrastructure to support digital onboarding via integration with beneficial third-party data providers.
Read More: Metromile, Hippo Team On Discount For Bundling Home, Auto Insurance
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