How We're Adapting to the Changing Insurance Market

How We're Adapting to the Changing Insurance Market


From tropical storms over California to tragic wildfires in Hawaii and a Texas freeze that left people shivering without electricity for days, it’s clear that the planet’s climate crisis is here.

And it’s not just the climate that’s changing; the economy is, too. Over the last two years, inflation not seen since the 1970s and early ‘80s has made everyday life more expensive for everyone.

The intersection between climate change and the changing economy is most evident in the property insurance industry. The frequency and severity of climate-related events, coupled with inflation and escalating replacement costs, make each insurance claim more costly to settle.

As we navigate these changes, it’s important for us to keep our commitment to transparency with you.

So, let’s not ignore the elephant in the room: to continue to provide the coverage you expect from us, we need to recalibrate our pricing. Effective November 1, 2023, Goodcover Members will see an increase in premiums to better align with the cost of insuring people given the evolving climate and economic conditions.

It’s not just Goodcover; every insurer is facing these difficulties. Giants like State Farm and Farmers and newer players like Lemonade and Hippo have all been hit hard, causing them to raise prices, pause writing new policies, or stop issuing policies altogether. It’s simply the landscape of today’s insurance market.

Messages from two insurance giants indicating that they are unable to provide policies to customers.
Some insurance giants have stopped writing renters insurance policies altogether.


What This Means for Your Goodcover Policy

Despite the challenges in our industry, we recognize the need for insurance has never been higher. Goodcover will continue offering insurance to renters in all the states we currently operate: California, Texas, Arizona, and Nevada. However, to maintain our commitment to Members, there are some adjustments we need to make.

Goodcover’s 2023 Member Dividend


The Member Dividend is our way of ensuring transparency and fairness. It holds us accountable for using your money wisely – we aim to keep a balance of 80% of premiums collected for Member claims and use 20% to run our operations. If we spend any less than 80% of all premiums on claims, we return it to Goodcover Members via the Dividend.

This year, we expect to use 104% of the premiums we collected over the last year to pay for the claims that arose during the same period. This makes this year’s Member Dividend -24% Essentially, we would have had to collect 24% more in premium from each Member to match our expected outcome.

Taking this and the general state of the industry into consideration, it’s clear that the overall amount we should anticipate needing in the future is more than what's reflected in this backwards-looking picture. Our price increase this year is a response to these emerging challenges and costs.

Unfortunately, we won’t be issuing a dividend this year, but we’re making the necessary adjustments so we can get back to offering the Member Dividend in the future.

Coverage Changes

Alongside the pricing adjustments, about 20% of our Members will see modifications to their coverage limits and coverage options. These include:

  • ULTRAGOOD coverage phasing out: We’re discontinuing the ULTRAGOOD package for now. For extended coverage, we recommend SUPERGOOD, specifically designed to cover jewelry, watches, cameras, and musical instruments. Otherwise, you may insure your items under your normal personal property limit (Coverage C), but they’ll be subject to a deductible if you need to make a claim.
  • New SUPERGOOD package features: The SUPERGOOD package will cover all the same risks as ULTRAGOOD except misplacement. There are still no deductibles on these items, but we’re lifting the previous $5,000 individual item limit for jewelry and watches. This will allow you to fully insure your most valuable items against accidental damage and covered risks.

All adjustments to price and coverage will only apply when you’re up for renewal; they will not affect your current policy’s terms.

You’ll have the opportunity to review all changes before your new policy takes effect. Additionally, you’ll continue to have the flexibility to change your coverage whenever you’d like, and you’re free to cancel your policy for a refund anytime.

Goodcover’s Continued Value and Future Expansion

Don’t worry, though; it’s not all about cost increases. We’ve got some good news, too. First, we’re preparing for our national rollout, ensuring more people across the country have access to transparent, modern insurance from Goodcover. We’ll share more details about that in the coming weeks, including information about new ways to be rewarded for referring your friends and family to Goodcover.

Your Goodcover Membership Benefits

As we adjust and expand, our commitment to making your Membership valuable remains a top priority for us. Here are some of the key benefits you’ll enjoy with Goodcover:

  • Roommate coverage: Previously, if you had a roommate, you each had to get your own policy. Now, if you’re all listed on the same lease, one policy covers the entire household.
  • New approach to claims history: Your claims are often beyond your control, and you don’t deserve to be punished for them. If you’ve had a previous claim, it won’t count against you or your premiums.
  • Faster claims processing: We’re introducing a new partner for claims, which will streamline our claims process and make it much faster than before. It’s all about making sure you’re back on your feet as quickly as possible.
  • Worldwide protection: We still protect your personal belongings worldwide from covered perils like vandalism and fire.
  • Exclusive Access to Goodcover Auto: Goodcover Members can scan the auto insurance marketplace using Goodcover Auto – a service designed to help you find the best deals on car insurance rates that can bundle with your renters insurance.
  • Instant Digital Experience: Tech convenience and expert help give you the modern, digital-first experience you’ve come to love from Goodcover. Manage your policy and make claims easily with our self-service Member Dashboard. When it would be more helpful to talk to someone, personalized assistance from Goodcover’s Member Experience team is just a click or call away.
  • Unmatched Member Experience: You’ve let us know how much you appreciate our Member Experience team – our customer satisfaction score is well beyond the industry average. Reach out anytime for personalized help through the Member Dashboard, live chat, support@goodcover.com, or through our toll-free number at 1-855-231-GOOD.

As the insurance industry evolves and the only constant is change, you can count on our commitment to serving your needs. By fine-tuning our coverage and pricing, we’re well-equipped to face the future together.

Thanks for being a Goodcover Member. Your trust fuels our determination to provide you with continued peace of mind through insurance, and we’re dedicated to serving you for years to come.

-Chris Lotz
CEO, Goodcover


Note: This post is for informational purposes; insurance regulation and coverage specifics vary by location and person. Check your policy for exact coverage information.

For additional questions, reach out to us – we’re happy to help.

More stories