Stand Secures $70 Million Funding Round to Reinvent Home Insurance Against Disasters

In a significant development for the home insurance industry, Stand has successfully raised $70 million in a Series C funding round, bringing its valuation to an impressive $1 billion. This funding round was led by Saga Ventures, with participation from other notable investors including Lowercarbon, Eclipse, Equal Ventures, Inspired Capital, Neotribe, and Jackson Square Ventures. Following this raise, Stand has amassed a total of $130 million in funding, underscoring robust investor confidence in its mission to enhance home safety against natural disasters.

Stand's ambitious vision involves transforming the way homes are insured by focusing on resilience. As the frequency and severity of natural disasters continue to escalate, with billion-dollar weather events hitting the United States approximately every ten days, homeowners face rising insurance costs, unpredictable premiums, and challenges in finding coverage. Stand proposes a radical solution: leveraging physics and advanced simulations to not just insure homes but also to make them fundamentally safer.

At the core of Stand's approach is the Stand World Model, a cutting-edge digital system that simulates how homes will fare in the event of disasters such as wildfires or severe storms. This model provides insights into vulnerabilities specific to each property and recommends improvements to enhance safety, taking into account the unique characteristics and surroundings of each home. This predictive analysis allows the company to offer homeowners practical recommendations to fortify their properties, which not only helps ensure safety but also leads to lower insurance premiums.

By investing in resilience, homeowners can benefit directly from cheaper insurance costs as their properties become less likely to sustain damage in disasters. In fact, Stand boasts the ability to provide discounts of up to 70% for resilient homes. This win-win strategy not only stabilizes insurance pricing but also offers homeowners peace of mind, knowing their homes are resilient.

In a bid to scale its operational capabilities, Stand has augmented its leadership team by bringing aboard two executives with extensive experience in the insurance sector. Drew Saad, who previously served as Chief Underwriting Officer at PURE Insurance, now takes the helm as President of Property Casualty. He emphasizes that Stand represents a significant shift in understanding risk for homes exposed to natural disasters. Similarly, Tony Landi joins as Chief Financial Officer, bringing a wealth of expertise in catastrophe reinsurance, which he aims to leverage in diversifying Stand’s financial portfolio and ensuring its capital growth.

As it stands, Stand operates by forming partnerships with homeowners, analyzing their risks, and providing guidance on fortifying their residences, ensuring that each home remains secure and insurance remains affordable. Policies are underwritten by Concert Specialty Insurance Company in California and Stand Insurance Exchange in Florida, with robust reinsurance backing from well-regarded firms such as Arch and Nephila.

The overarching goal of Stand is clear: to insure every resilient property worldwide while advocating for safer homes amidst dire climatic challenges. As CEO Dan Preston aptly put it, “Disasters follow the laws of physics, and insurance should too.” By aligning its operations with the inevitabilities of natural disasters, Stand not only aims to protect homes but also to revolutionize the insurance landscape for the betterment of all homeowners.