Stand, a homeowners insurance provider focused on high-risk properties, has secured $35 million in Series B funding to support its expansion into the Florida insurance market. The company, which began operations just over a year ago, is targeting Florida due to its status as one of the largest and most unpredictable catastrophe markets in the United States.
Stand’s Florida Insurance Expansion Backed by $35 Million Series B
The recent Series B funding round for Stand was led by Eclipse, with participation from existing investors Inspired Capital, Lowercarbon Capital, and Equal Ventures. According to company statements, this investment will allow Stand to bring its resilience-focused insurance model to Florida homeowners, offering options in a market where traditional insurers have scaled back coverage.
Florida’s Catastrophe Insurance Market: High Risk, High Demand
Florida has faced 94 distinct billion-dollar disasters since 1980, according to the National Oceanic and Atmospheric Administration (NOAA). The most recent seven events alone have resulted in over $1 trillion in combined losses. The state’s insurer of last resort, Citizens Property Insurance Corporation, currently holds nearly $300 billion in exposure, highlighting the urgent need for sustainable private insurance capacity.
Why Florida’s Insurance Market Needs New Solutions
According to industry data, rising costs and reduced coverage have left many Florida homeowners exposed to significant financial risk. Stand aims to address these challenges by linking insurance coverage and pricing to home mitigation efforts, such as upgrades that reduce wind, fire, and flood damage risks. Recently, regulatory changes have also impacted customers, as seen in the Florida property insurance rate hike approved for True customers, further emphasizing the need for innovative solutions.
Stand’s Approach: Resilience-Driven Homeowners Insurance
Stand’s insurance model is designed to reward homeowners who take steps to protect their properties from severe weather. The company uses advanced physics-based models, initially developed for wildfire risk in California, which have now been adapted to assess wind risk in Florida. This technology enables Stand to provide accurate assessments of how individual homes can withstand hurricanes and other extreme weather events.
Incentives for Home Mitigation
By offering incentives for property upgrades, Stand supports homeowners in lowering their long-term insurance costs. These incentives may include premium discounts or coverage benefits for homes that meet specific mitigation standards. According to Stand, this approach not only reduces risk for individual homeowners but also supports broader community resilience.
Funding Details and Investor Support
The $35 million Series B round was led by Eclipse, with Aidan Madigan-Curtis, Eclipse partner and board director at Stand, highlighting the importance of resilience in the future of property insurance. Madigan-Curtis stated that U.S. weather disasters have caused over $1.4 trillion in losses over the past decade, with less than half of those losses insured. The investment in Stand reflects a commitment to providing property owners with effective tools to safeguard their homes and financial futures.
Stand’s Growth and Market Impact
Since its launch, Stand has underwritten $1 billion in insured value in wildfire-exposed California. With this new funding, the company plans to expand its operations in Florida, leveraging its leadership team’s expertise in insurance, technology, and applied science. Stand’s entry into the Florida market is expected to increase private insurance options for homeowners, particularly in areas where traditional insurers have withdrawn. In addition to new market entrants, established providers are also making significant changes; for example, Florida Peninsula Insurance proposes a historic rate cut for homeowners, signaling a shift in the competitive landscape.
Technology and Data in Catastrophe Insurance
Stand’s use of advanced modeling technology is central to its insurance offerings. The company’s models evaluate the resilience of individual structures, providing detailed risk assessments that inform both coverage decisions and mitigation recommendations. This data-driven approach aims to create more accurate pricing and better outcomes for policyholders in high-risk regions.
Focus on Wind, Fire, and Flood Risks
Florida’s exposure to hurricanes, severe storms, and flooding requires specialized insurance solutions. Stand’s technology, originally built for wildfire risk, now helps assess wind and flood vulnerabilities, giving homeowners and underwriters a clearer understanding of property risks and mitigation opportunities.
Industry Context: Citizens Property Insurance and Private Capacity
The significant exposure held by Citizens Property Insurance Corporation underscores the challenges facing Florida’s insurance market. According to official sources, Citizens serves as the insurer of last resort for many homeowners unable to secure private coverage. Stand’s expansion is positioned to help reduce the state’s reliance on public insurance by increasing sustainable private capacity.
Ongoing Challenges and Opportunities
Florida’s insurance market continues to evolve in response to frequent natural disasters and shifting risk profiles. Companies like Stand, which integrate technology and resilience into their offerings, are seen as important contributors to the state’s long-term insurance stability. Details on Stand’s specific policy offerings and eligibility criteria for Florida homeowners will be released as the company completes its regulatory approvals and rollout.
Frequently Asked Questions About Stand Florida Insurance Expansion
What is Stand’s approach to homeowners insurance in Florida?
Stand offers homeowners insurance that links coverage and pricing to property upgrades and mitigation efforts. The company uses advanced models to assess risks from wind, fire, and flood, providing incentives for homeowners to strengthen their homes.
How much funding did Stand raise for its Florida expansion?
Stand raised $35 million in a Series B funding round led by Eclipse, with participation from Inspired Capital, Lowercarbon Capital, and Equal Ventures. This funding supports the company’s move into the Florida insurance market.
Are there private insurance options for high-risk homes in Florida?
Yes, companies like Stand are expanding private insurance options for high-risk properties in Florida. These options are designed to complement state-run programs like Citizens Property Insurance Corporation.
Can you lower your insurance costs with Stand in Florida?
Stand provides incentives for homeowners who upgrade their properties to reduce risks from wind, fire, or flood. These upgrades can lead to lower insurance premiums and better protection.
Where are Stand’s insurance services currently available?
Stand currently offers insurance in California and Florida, focusing on regions with high catastrophe risks. The company plans to expand further as its technology and regulatory approvals progress.
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