Stand Secures $35 Million in Series B Funding to Transform Home Insurance in High-Risk Areas

Stand Secures $35 Million Series B Funding

Stand, a pioneering company in the field of insurance, has successfully closed a $35 million Series B funding round, aimed at transforming insurance solutions for homes located in disaster-prone areas. The funding round was primarily led by Eclipse, along with contributions from previous investors including Inspired Capital, Lowercarbon Capital, and Equal Ventures.

Founded just over a year ago, Stand has made impressive strides in the insurance landscape, particularly in wildfire-prone California, where it has underwritten an astonishing $1 billion in insured value. With this new influx of capital, the company is now set to expand its reach into Florida, a market that has encountered an alarming number of catastrophic events over the past few decades.

According to NOAA, Florida has been hit by 94 distinct billion-dollar disasters since 1980, and the recent incidents alone have led to over $1 trillion in losses. The pressing need for innovative insurance solutions becomes clear when noting that Citizens Property Insurance Corporation, Florida's state-run insurer, is currently facing nearly $300 billion in exposure. This scenario underscores the challenges and demands of the Florida insurance market, necessitating a new, sustainable private capacity.

"Insurance should play a central role in creating resilient communities," remarked Dan Preston, CEO and co-founder of Stand. He emphasized the necessity of adapting to the unique risks faced by Florida homeowners, advocating for an insurance model that connects policy coverage to home fortification against extreme weather conditions.

Stand's unique approach to the insurance model focuses on resilience-building by offering coverage tied to mitigation improvements. For instance, they promote upgrades that fortify homes against wind, fire, and flood damage, not only helping homeowners minimize risks but also reducing long-term costs. The company's underwriting strategy utilizes advanced physics-based models, initially used for wildfire assessments and now adapted for wind, providing a more comprehensive understanding of how residential structures can withstand severe weather events.

Unfortunately, U.S. weather-related disasters have averaged over $146 billion in losses annually over the last decade, while access to affordable insurance coverage has continued to wane. Many nationwide insurers have retreated from states that frequently experience disasters, leaving countless homeowners scrambling for coverage after large companies cancel policies or discontinue renewals.

“The last ten years of U.S. weather disasters have resulted in more than $1.4 trillion in losses, with less than half of those losses insured,” indicated Aidan Madigan-Curtis, a partner at Eclipse and a board member of Stand. He highlighted the critical and urgent need for resilient insurance alternatives in a time where rising costs and smaller coverage options threaten American families’ security. Eclipse's substantial investment in Stand is reflective of a shared vision to empower property owners with the essential tools to safeguard their homes and their financial futures.

With a leadership team rich in experience across the realms of insurance, technology, and applied sciences, and backed by reputable investors and reinsurers, Stand is making waves in the industry for its exceptional claims management and customer service. As the company extends its operations to cover California and Florida, it aims to amplify its mission to provide protection to homes in some of the most disaster-prone locations.

For more information about Stand and its innovative insurance solutions, visit standinsurance.com.