Sola raises $3.7 million

Sola Insurance, an Atlanta-based startup offering a supplemental insurance policy for tornado damage, announced the successful close of its seed round led by FINTOP Capital, with participation from Overline, 10vc, Karuna VC, and “prominent” insurance executives—bringing total funding to $3.7 million.

Founded in 2022, Sola has partnered with several companies including Tokio Marine Kiln, Canopy Weather, Crawford & Company, Spinnaker, and Costero Brokers to offer a policy that reduces out-of-pocket expenses for homeowners with high deductibles. The startup claims that its platform uses advanced weather data and automated claims processing to deliver fast payouts within days.

According to its site, tornado coverage is available to homeowners in AL, AR, GA, IA, IL, IN, KS, KY, MO, MS, NE, OH, OK, TN, and TX. The startup also features a Wind And Hail Crisis Policy that pays out when Sola detects “a significant wind or hail event at the property location” that leads to “severe property damage.”

“At Sola, we are building a lifeline for homeowners who have incredibly high premiums and deductibles. With our new wind and hail product, we’re tackling these challenges head-on and delivering much needed relief to more homeowners.” – Wesley Pergament, Co-Founder and CEO of Sola.

Bottom Line: Sola is one of 44 MGAs approved for business in 2023.