Rhino seems to replace renters’ security deposits with a small monthly fee

52

Rhino is the insurtech startup produced by Kairos and co-founded by Kairos CEO Ankur Jain.

It has announced the settlement of a $21 million Series A round, which was headed by Kairos and Lakestar.

Rhino was established in 2017 to put the billions of dollars that are bolted up in cash security deposits to renters while preserving landlords and their property. 

As it stands now, landlords typically get one month’s rent to cover any harm that might happen to the apartment during the lease. 

This is stacked on top of first and sometimes last month’s rent, and also at times, a broker’s fee of one month’s rent is charged. In total, it sums up to an astonishingly steep cost of relocating.

Due to specific laws, this money is kept in an individual escrow account and can’t generate interest.

This ends in billions of dollars zapped out of the market and instead of lying dead in some account.

Rhino sees to give renters a choice to pay a small monthly fee which is as low as $3 to include insurance policy for the landlord. 

Rhino is itself handling a joint agent, enabling the company to both sell and build policy plans for landlords in partnerships with carriers.

So far the startup has protected renters upwards of $60 million in 2019, with users in more than 300,000 rental parts across the country.

Rhino’s Biggest Challenge 

Rhino CEO and cofounder Paraag Sarva stated that the biggest challenge is working against legacy and industry standards.

To help hurry up the process, Rhino is working with policymakers to pass change on a federal level.

Besides the funding announcement, the company is publishing its new policy plan that was built in collaboration with federal, state and local government administrators. 

The policy allows for renters to be provided with a choice when it comes to cash deposits.

This includes providing residents to cover security deposits in parts or use insurtech products like Rhino to cover deposits.

Rhino states it will be giving the policy proposal with 2020 Presidential nominees on both sides of the aisle.

Involvement of Kairos

Rhino is one of the few companies that has been incubated by Kairos, a startup to solve the most significant problems encountered by Americans every day. 

The studio concentrates on housing and healthcare, with the support of companies such as Rhino, June Homes, Little Spoon and Cera.

SEE ALSOMedal.tv Raises $9 Million To Become The Social Network of the Gaming World

For more updates and the latest tech news, keep reading iTMunch.