Residence, inc

Product Overview: Residence Insurance™ is a new insurance product designed to keep policyholders in their homes if they experience a short-term financial crisis. What that means: the most likely reasons for eviction or foreclosure are from temporary financial crises such as 1) getting laid off, 2) getting fired, or 3) incurring an unexpected medical expense. Under those claim-qualifying conditions, Residence Insurance™ will pay their rent or mortgage directly to their landlord or lender, and the policyholder will keep their home. We provide housing security nationwide, across demographics, and across income brackets.

With a strong First Mover Advantage and no direct competition, Residence Insurance™ fills a hole in the insurance industry by providing (currently unavailable) housing security and peace-of-mind to tenants and mortgage-borrowers while also providing financial security to landlords and mortgage-lenders.

Product Need: Over 5M tenants and mortgage-borrowers are evicted or foreclosed on every year, primarily due to these temporary financial crises. Not only are they detrimental to these tenants and mortgage-borrowers, but they also cost landlords $7B/year, mortgage-lenders $243B/year, and government entities $46.25B/year in increased social services.

Go-To-Market Distribution Strategy: Residence Insurance™ will be distributed through five (5) B2B2C Avenues: (1) Insurance Broker Aggregators, Agencies, and Agents; (2) Landlords; (3) Mortgage-Brokers; (4) Employers/Organizations; and (5) Insurance Brokerage Platforms. It will also be marketed B2C through our website. Further distribution opportunities exist through (1) the U.S. Department of Housing & Urban Development, (2) Lloyd’s of London, and (3) white labelling the Residence Insurance product. We have connected with multiple entities within each segment who have expressed interest in partnering with Residence, inc. for distribution.

Further, we have conducted consumer demand market surveys and found that 97% of potential policyholders are concerned about losing their home due to one of Residence Insurance's claim-qualifying conditions. We also found that 90% of those surveyed are interested in the Residence Insurance™ product. These surveys also provided evidence to support our target market demographics assumptions.

U.S. Market Opportunity: Our Total Addressable Market is 129M households (45M renters and 84M mortgage-holders). After subtracting the top 5% of income earners and the bottom 11% of income earners (the population below the poverty level), we found a Serviceable Addressable Market of 108.4M households (37.8M renters and 70.6M mortgage-holders). We believe we can acquire 49% of that market, leaving our Serviceable Obtainable Market as 53.1M households (18.5M renters and 34.6M mortgage-holders) across the United States.

Competition: As Residence Insurance™ is a new insurance product that fills a hole in the insurance industry, we have no direct competition. We have a strong first-mover advantage and have trademarked the product for additional protections. More information about potential competition is available upon request.
 
Premiums & Underwriting: A policyholder's premium calculation is formulaic and based off their individual monthly housing payment. Already-established underwriting considerations impact that base rate to calculate the individual's final premium. A reputable actuarial firm has confirmed these underwriting rules and created rating tables that are available upon request.

Technology Platform: Enrollment, Underwriting, and Policy and Claims Administration will be handled through the combination of three integrated, AI-powered, and already-built services. These contracts and agreements are ready-to-go post-raise, and further information is available upon request.

Economics and Financials: Four-year financial forecasts, along with a detailed assumptions list, loss-ratio data founded in reputable research, charts, and graphs, are available upon request.

Leadership Team Bios:
Margaret (Maggie) Buchanan - Founder & Chief Executive Officer: After working for a Fortune 500 insurance company, Maggie earned a Master of Business Administration from the Fuqua School of Business at Duke University with a concentration in Innovation & Entrepreneurship as well as a Master of Public Policy from the Sanford School of Public Policy at Duke University. She wrote her Master’s Thesis on Housing Insecurity, proving how the government and non-profits are failing to provide housing security and how a for-profit solution, Residence Insurance™, can do it better.
Martin A. Calhoun - Co-Founder & Chief Insurance Officer: Martin brings a wealth of knowledge and experience from the insurance industry. He was a top producing Agency owner and was awarded 'The Agent of The Year Globally' for one of the largest insurance companies in the world. He has held multiple insurance executive positions and was critical in blitz-scaling an insuretech start-up, where he increased sales and revenue by over 415% in 13 months.

Investment Opportunity: Residence, inc. is raising $1,000,000 at a post-money valuation of $5,000,000 in exchange for 20% equity in preferred shares. This raise will enable us to operate through launch and into profitability.