Homeowners’ insurance has become extremely difficult to secure in the highest climate-risk states, such as California, Florida, and Texas.
And the problem continues to grow, as more than one-fourth of U.S. homes, or 26.1%, with a combined value of $12.7 trillion, are exposed to at least one type of severe or extreme climate risk, such as hurricanes, wildfires, and floods, according to the latest Realtor.com 2025 Housing and Climate Risk Report.
While the Los Angeles wildfires and Texas flash floods are the climate disasters that most people immediately remember, the most at-risk metropolitan areas with the highest insurance costs are mostly in the South, based on premium-to-market value ratio, led by the No. 1 metro, Miami, and No. 2 metro, New Orleans.
Miami homeowners might soon get some welcome relief in the homeowners’ insurance market as a new carrier enters Florida.
Stand offers insurance in Florida
Startup homeowners’ insurance company Stand Insurance will expand its coverage of catastrophe-exposed properties to Florida, after its December 2024 launch of underwriting insurance for homes in wildfire-exposed California.
The San Francisco-based insurance company, which launched its first product for California homeowners on Dec. 16, 2024, has underwritten $1 billion in insured value in the Golden State since it opened for business, according to an Oct. 16 statement.
Stand uses A.I., physics, proactive mitigation
Stand has an innovative approach to providing homeowners’ insurance as it combines physics, artificial intelligence, and proactive mitigation to insure homes that traditional carriers reject, according to its website.
Getty Images/TheStreet
New funds support Stand Insurance expansion
Stand closed a $35 million Series B funding round on Oct. 16, backed by Eclipse, Inspired Capital, Lowercarbon Capital, and Equal Ventures, according to the statement.
The latest funding will support Stand’s expansion into Florida, which is one of the largest catastrophe markets in the U.S.
Florida has faced 94 separate billion-dollar disasters since 1980, with the last seven catastrophic events alone resulting in over $1 trillion in losses, according to the National Oceanic and Atmospheric Administration.
Florida’s 94 separate $1 billion disasters 1980-2024
- 7 droughts
- 4 floods
- 5 freeze events
- 33 severe storms
- 36 tropical cyclones
- 4 wildfires
- 5 winter storms
The state averaged 2.1 events each year between 1980 and 2024, with an average in 2020-2024 of 6.8 events a year.
The company launched in December with the backing of the industry’s top-tier reinsurers, an AM Best A- rating, and $30 million in funding from Inspired Capital, Lowercarbon, Equal Ventures, and Convective Capital.
Stand Insurance plans to write over $2 billion in homeowners’ coverage within its first year, according to the company statement.
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Stand Insurance entered the homeowners’ insurance market in California after the exit of several major insurance companies that faced huge wildfire risk, including State Farm, Allstate, Hartford Financial Services Group, American National, and AmGuard.
Insurance companies that have withdrawn from writing homeowner’s insurance in Florida include Farmers Insurance, Bankers Insurance, and Lexington Insurance, USA Today reported.
Florida homeowners unable to find insurance policies can enroll in the state-backed, backstop insurer Citizens Property Insurance Corporation. The state’s insurer of last resort currently holds $300 billion in insurance exposure.
Stand Insurance co-founders:
- CEO Dan Preston, former CEO of Metromile
- CPO Jason Mueller, former CPO of Policygenius
- Sam Shank, former CEO of HotelTonight
- Bill Clerico, managing partner of Convenctive Capital
Stand was founded by a team of experts in the insurance, wildfire, science, and consumer distribution domains.
The company’s leadership includes co-founders CEO Dan Preston, former CEO of Metromile; CPO Jason Mueller, former CPO of Policygenius; Sam Shank, former CEO of HotelTonight, which was purchased by Airbnb; and Bill Clerico, managing partner of Convenctive Capital and former CEO of WePay, which JPMorgan purchased.
Stand also has a partnership with Concert Specialty Insurance Company, which also carries an AM Best A- rating.
Related: Major insurance carrier collapses and files Chapter 15 bankruptcy
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