Stand Insurance has secured a $35 million Series B funding round to support its expansion into Florida, marking a significant move in the state’s high-risk property insurance market. The company’s entry into Florida comes as the region faces increasing challenges from natural disasters, making property insurance a critical concern for homeowners and insurers alike.
Stand Insurance Expands Into Florida’s High-Risk Insurance Market
Stand Insurance, known for its focus on high-risk properties, is entering Florida after establishing a presence in California. The company has underwritten $1 billion in insured value in California, primarily for homes exposed to wildfires. With this new funding, Stand aims to address Florida’s unique disaster risks, particularly hurricanes and wind storms. The move comes at a time when statewide insurance reform proposals are being discussed to stabilize the volatile Florida insurance market.
Series B Funding Led by Eclipse
The $35 million Series B round was led by Eclipse, with participation from existing investors Inspired Capital, Lowercarbon Capital, and Equal Ventures. According to Stand Insurance, this investment will allow the company to expand its mitigation-first insurance model into one of the most disaster-prone regions in the United States.
Florida’s Catastrophe Insurance Landscape
Florida is recognized as one of the largest and most volatile insurance markets in the country. According to data from the National Oceanic and Atmospheric Administration (NOAA), Florida has experienced 94 separate billion-dollar disasters since 1980. The most recent seven events alone have resulted in over $1 trillion in total damages.
The state’s insurer of last resort, Citizens Property Insurance Corporation, currently holds nearly $300 billion in exposure. This highlights the scale of risk and the urgent need for innovative insurance solutions in Florida.
Challenges Facing Homeowners and Insurers
Weather-related damage in the United States has averaged $146 billion annually over the past decade, according to NOAA. Many insurers have reduced coverage or withdrawn entirely from disaster-prone states like Florida. As a result, hundreds of thousands of homeowners have lost access to affordable insurance options. Recently, Tesla Insurance re-entered the Florida market after a three-year pause, highlighting renewed interest in innovative insurance solutions for the state.
Stand Insurance’s Mitigation-First Approach
Stand Insurance’s model links insurance coverage to specific mitigation practices that reduce physical risk. The company encourages homeowners to invest in property upgrades, such as reinforcing roofs or installing fire-resistant materials. These measures aim to lower long-term insurance costs while improving resilience against natural disasters.
Advanced Underwriting and Risk Modeling
Stand uses advanced physics-based models to predict how structures perform under extreme conditions. Initially focused on wildfire risks in California, the company is now extending its expertise to wind exposure and hurricane risks in Florida.
- Physics-based risk modeling for accurate property assessments
- Mitigation-linked coverage to incentivize home upgrades
- Efficient claims management and customer service
Leadership and Industry Support
Stand Insurance’s leadership team brings decades of combined experience in insurance, technology, and applied sciences. The company is backed by major investors and reinsurers, supporting its goal to create more resilient communities through innovative insurance solutions.
Statements from Stand Insurance and Investors
According to Dan Preston, Co-founder and CEO of Stand Insurance, “Insurance should play a central role in creating resilient communities. The scale of risk in Florida demands a new model: One that links coverage to hardening homes against wind storms. That’s what Stand is building. By expanding into the largest catastrophe market in the country, we’re working hard to make this a reality for the world’s property owners.”
Aidan Madigan-Curtis, Partner and Board Director at Eclipse, stated, “Over the last 10 years, U.S. weather disasters have caused over $1.4 trillion in losses — with less than half insured. Rising costs and shrinking coverage are leaving American families exposed. Eclipse’s $30M investment in Stand reflects our conviction that resilience is the future, giving property owners the tools to safeguard their properties and their futures.”
Impact on Florida’s Property Insurance Market
With its expansion into Florida, Stand Insurance aims to provide new options for homeowners facing increasing risks from hurricanes and other disasters. The company’s mitigation-first approach may help address the ongoing crisis in property insurance availability and affordability in the state.
Stand Insurance plans to scale its model to additional catastrophe-exposed markets in the future, according to company statements. Details may be updated as the company’s Florida operations develop.
Frequently Asked Questions About Stand Insurance Florida Expansion
What is Stand Insurance’s approach to property insurance in Florida?
Stand Insurance uses a mitigation-first model, linking insurance coverage to upgrades that reduce property risk. This includes encouraging homeowners to reinforce roofs or install fire-resistant materials to lower costs and improve resilience.
How much funding did Stand Insurance raise for its Florida expansion?
Stand Insurance raised $35 million in a Series B funding round led by Eclipse, with participation from Inspired Capital, Lowercarbon Capital, and Equal Ventures.
Are there other companies offering similar insurance options in Florida?
Several insurers operate in Florida, but many have reduced coverage or left the market due to high disaster risks. Stand Insurance is among the few introducing a mitigation-linked approach to coverage.
Can you lower your insurance costs with Stand Insurance by upgrading your home?
Yes, Stand Insurance’s model encourages property owners to invest in upgrades like reinforced roofs or fire-resistant materials, which can help reduce insurance premiums over time.
Where are Stand Insurance’s services currently available?
Stand Insurance started in California, focusing on wildfire risks, and is now expanding into Florida to address hurricane and wind exposure. The company plans to enter additional high-risk markets in the future.
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