Safely raises $12M to expand its short-term rental insurance solutions

Atlanta-based Safely has raised $12 million in venture investment and debt to accelerate growth of its insurance and guest screening solutions for short-term rentals.

The round was led by LAGO Innovation Fund, with participation from Highgate Technology Ventures, Greenlight Re Innovations and other existing investors.

Founded in 2013, Safely provides insurance for individual homeowners and professional property managers. Safely integrates with several property management systems so property and liability coverage is embedded in the reservation.

Safely also runs background checks on guests – using the guest’s name, date of birth and address – and assigns a “risk score” to help homeowners and property managers determine which reservations to confirm.

The company says it has accumulated more than two million nights' worth of data, building a broad view of risk factors within the short-term rental market and the broader sharing economy.

“LAGO and HTV quickly understood the potential of Safely’s home rental protection, and we look forward to collaborating with them to make our program world-class,” says Andrew Bate, founder and CEO of Safely.

Says Simon Burton, CEO at Greenlight Re: "The significant growth of the short-term rental market has occurred despite the absence of a suitable insurance product. Safely has the right product to respond to this demand and has prioritized customer experience through their impressive platform.”

Platforms such as Airbnb and Vrbo provide insurance for hosts but, according to Safely’s website, the coverage they offer is not comprehensive so Safely’s.