The “Safe Driver” Moment for Homeowners Insurance

Insurance has long been a backstop—visible at purchase or at claim, but largely absent in between. T hat reactive model often leaves carriers competing on price, rather than demonstrating value. A proactive approach changes the equation: higher retention, lower loss ratios, and stronger reputation. Why Waiting is Risky In a reactive system, homeowners are expected to spot problems early. But homeowners don’t always have the tools or guidance to spot subtle risks, such as: A slow leak under the sink that warps flooring An aging hose behind an appliance ready to burst A faint ceiling stain signaling roof damage A clogged dryer vent that could ignite a fire By the time these issues surface, the claim is larger, disruption is greater, and the insurer is positioned only as a payer of losses—not a partner in prevention.

What if many of the most costly claims could be avoided before they happen? Across the insurance industry, forward-thinking carriers are showing that prevention is not just possible—it’s practical. By providing homeowners with smart devices, timely reminders, and accessible preventive services, insurers are helping reduce common risks and avoid unnecessary losses. The result: fewer claims, lower costs, and stronger customer trust. The Bill We Keep Paying Water damage drives an estimated $28 billion in residential claims each year. Research suggests that many of these losses could be reduced with leak detection and shut-off systems ( source ). Simple steps—like replacing aging hoses, cleaning drains, or installing detection devices—can stop small issues before they escalate into costly claims. Fire-related damage is equally significant. In 2023, residential structure fires caused $11.3 billion in direct property damage ( source ). Wildfires added another $5.55 billion in insured losses across all lines in 2024, with a substantial portion affecting homes ( source ). Lightning strikes accounted for an additional $1.04 billion in homeowners claims during the same year ( source ). Combined, these fire- and lightning-related events cost roughly $16 billion annually. Preventive steps such as maintaining functional smoke alarms, routine dryer vent cleaning, creating defensible space in wildfire zones, and using surge protection for electronics can meaningfully reduce these risks. The challenge isn’t just the scale of loss—it’s that preventive infrastructure is not yet widely adopted, and homeowners often lack timely guidance on when and how to act.

Water damage is one of the most common and costly types of residential insurance claims. It often starts small—a loose fitting fixture, a slow drip out of a supply line hose—but left undetected, it can quickly spiral into thousands of dollars in repairs, weeks of disruption, and stress for the policyholder. Yet not every water damage story ends in a claim. Sometimes, a timely intervention changes the outcome entirely. A Leak That Never Became a Claim During a routine Rafter self-assessment, a small puddle under a member’s refrigerator revealed that the water supply line was actively leaking. It was a small, steady flow—just enough to saturate the floor over time. Had it continued unnoticed, it could have warped hardwood, damaged cabinetry, and led to mold growth, pushing repair costs much higher. Instead, the issue was spotted early. The homeowner was immediately connected to a trusted specialist who fixed the problem the same day. No damage, no claim, no disruption. The homeowner avoided stress and expense, while the insurer benefited from avoided costs.

According to a January 2025 survey by Leaf Home in partnership with Morning Consult, nearly 70% of homeowners worry about unreliable contractors, and 41% report being deceived by service providers. Meanwhile, a SuretyNow study revealed that only 35.6% of homeowners “completely” trust contractors to deliver on time and on budget—while more than half say they only “somewhat” trust them, and 13% say they don’t trust contractors much—or at all. This disconnect—high demand for help paired with low trust in providers—points to a structural gap in the way home care is delivered. The Everyday Strain of Home Care Homeownership today means managing a web of systems—plumbing, roofing, HVAC, appliances—all demanding maintenance at different times. Without a guidebook, many homeowners feel lost. Top homeowner pain points include: Not knowing what maintenance tasks to prioritize or when to do them Difficulty finding trustworthy providers for urgent or specialized work Confusion over costs and fear of being overcharged Overwhelm when coordinating multiple providers for different needs Limited preventive guidance—help usually comes only after a problem has already occurred

Establishing A New Paradigm For Homeowners Insurance Homeownership should feel safe and empowering. Instead, it’s often overwhelming—and far too often, catastrophic. Last year alone, over $47 billion in preventable losses hit U.S. homeowners from water damage, fires, natural disasters, and equipment failures. Behind every number is a family disrupted, a home damaged, or a memory lost. And insurers are left carrying the financial burden of claims they know could have been avoided. We started Rafter with a bold vision: to flip the model from reactive to proactive, and to build a future where homes protect the people inside them. That means building what we call Loss Prevention OS —a platform for home protection that benefits both homeowners and insurers. For families, it means less stress and fewer disasters. For insurers, it means fewer claims, lower loss ratios, stronger retention, and better data visibility across their portfolios. By combining smart technology, trusted service providers, and proactive support, we align incentives on both sides and prove that prevention works at scale. Learning From Homeowners, Building for Scale From day one, we made a deliberate choice: start by working directly with homeowners. We wanted to deeply understand their challenges, earn their trust, and design solutions that truly simplify their lives. Over the past two years, we’ve worked with hundreds of families to do exactly that—guiding them through everything from identifying hidden risks to fixing the issues that mattered most. That experience gave us more than proof—it gave us conviction. Conviction that proactive home protection works. Conviction that families everywhere deserve the same peace of mind. And conviction that insurers are the natural partners to bring this vision to scale. Insurers share our incentive to prevent losses and deliver better homeownership experiences, and they gain the additional benefit of improved economics and deeper policyholder relationships. Now, we’re transforming those early lessons into a national platform. We’re building not just for hundreds of homeowners, but for millions—together with the insurers who protect them. And while our reach expands, our focus remains razor sharp: the homeowner always comes first. Partnering to Make Prevention the Standard The scale of the challenge is massive—$47 billion in preventable losses every year—and so is the opportunity. We believe the future of homeownership is proactive, not reactive. Our vision is bold: every home equipped to anticipate and prevent problems before they happen. By partnering with insurers, we can accelerate that future—reaching millions of families while creating shared value across the entire ecosystem. Together, we can turn prevention into the new standard of homeownership: reducing claims, lowering costs, strengthening retention, and unlocking new insights that reshape the economics of insurance. Our north star is clear: a world where every homeowner feels confident their most important investment—their home—is always protected. Turning Prevention Into the New Standard Most solutions in the market react after damage is already done. Rafter is different—we are built on prevention and alignment with homeowners and insurers from the ground up. Here’s why it works: Homeowner-centric : Designed specifically around the homeowner—simple, intuitive, and personalized at every interaction. Detection → Execution : End-to-end support. We identify risks, actively address them through expert guidance and hands-on support, and validate resolution. AI-powered + Human touch : We leverage advanced AI to enhance predictive accuracy, while ensuring personalized human advisory is always available. Gamified incentives : We motivate preventive behaviors through rewards, challenges, and measurable benefits that make proactive care easy and rewarding. Scalable by design : Built to support any homeowner, regardless of geography, type of home, or risk profile. In many ways, Rafter is the plug-and-play equivalent of a safe-driver program for homeowners insurance—aligning incentives, proving prevention works, and making protection second nature. The Bigger Picture At the end of the day, this isn’t just about technology or insurance. It’s about protecting families, preserving memories, and making the places we call home safer and stronger. We started Rafter because we care deeply about those things—for ourselves, for our communities, and for the generations to come. The $47 billion problem we set out to solve is massive, but so is the opportunity. By making prevention the new standard in homeownership—together with our insurance partners—we can reduce losses, lower costs, and deliver peace of mind at scale. That’s the future we’re building toward: a future where every home protects the people inside it. We’re excited to share more of this journey with you. As we grow, we’ll continue to open up about what we’re learning, what we’re building, and why it matters. Thanks for being with us. The best is yet to come. — Anil & Marcus Co-Founders, Rafter

The Missed Frontier in Insurance Innovation Technology has transformed many aspects of the property insurance industry. Pricing is increasingly precise. Underwriting is faster and more data-informed. Claims processing is often more automated than ever before. Yet, in one critical area, little has changed: the experience of the homeowner. For most policyholders, their insurance company is something they interact with only when something goes wrong. That interaction, unfortunately, often feels impersonal or adversarial. A problem has occurred, a claim is filed, and a process begins, one that may be unfamiliar, confusing, or frustrating for the customer. This is more than a customer service issue. It's a missed strategic opportunity. When the only engagement between a policyholder and their insurer happens during or after a loss, the relationship is, by design, reactive. It leaves value on the table for both parties in preventable loss, unaddressed risk, and unrealized trust. The Reality at Home: A Complex System with Little Support Ask a typical homeowner about managing their home and you’ll often hear some version of this: “I had no idea how much there was to stay on top of.” And it's true. A single-family home is a highly complex asset made up of dozens of systems and hundreds of components: plumbing, HVAC, electrical, appliances, roofing, safety equipment, and more. Each comes with its own maintenance schedule, potential failure points, and safety implications.

The Cost We Keep Paying Each year, the U.S. property and casualty (P&C) insurance industry pays out over $100 billion in residential claims. Fires, water damage, windstorms, and theft represent not only financial losses but deeply disruptive experiences for homeowners. What’s striking isn’t just the scale of the problem, it’s how much of it could be avoided.