Your Florida homeowners insurance just got a new player. Stand Insurance announced it’s entering the Sunshine State’s brutal property insurance market this month, less than a year after launching in California’s wildfire zones.
This matters because Miami holds the worst insurance affordability ratio in America. And over 26% of U.S. homes—worth a combined $12.7 trillion—sit in severe climate risk zones where traditional insurers keep retreating.
Stand has already underwritten $1 billion in insured value since December 2024. Now they’re betting they can crack Florida’s hurricane-ravaged market where homeowners face annual premium increases of 30-40% and shrinking coverage options.
Why a California Wildfire Insurer Is Betting on Florida Hurricanes
Stand Insurance launched December 16, 2024, targeting one problem: California homeowners couldn’t get wildfire coverage. Ten months later, they’ve hit $1 billion in underwritten value by focusing exclusively on catastrophe-exposed properties traditional carriers won’t touch.
Florida presents the opposite disaster type but identical market dynamics. Major insurers like State Farm and Farmers pulled back from the state after $112 billion in insured hurricane losses since 2017. The ones who stayed? They’re charging 2-3 times the national average premium.
Stand’s model works because they’re not diversifying risk away from disasters—they’re pricing it directly. While legacy insurers spread exposure across “safe” and “risky” properties, Stand underwrites only high-risk homes with actuarial precision. That lets them charge enough to stay profitable while still undercutting legacy carriers bloated by decades of inefficient risk pooling.
The timing isn’t random. Florida’s state-backed Citizens Property Insurance Corporation now covers over 1.2 million policies, triple its 2019 level. When the government insurer of last resort becomes the biggest player, that signals a market failure private companies can exploit.
Miami Homeowners Pay the Highest Insurance Burden in America
According to Realtor.com’s 2025 Housing and Climate Risk Report, Miami ranks No. 1 nationally for insurance premium-to-home value ratio. Translation: You’re paying more of your home’s worth just to insure it than anywhere else in the country.
New Orleans takes second place, but the gap matters. Miami’s exposure combines:
- Hurricane frequency: Major storms every 2-3 years historically, now accelerating to near-annual threats with climate intensification.
- Sea level rise adding flood risk on top of wind damage.
- Construction costs spiking 40% since 2020, making rebuilds more expensive.
- Assignment of Benefits (AOB) fraud that drove up claims costs by billions before reform.
The average Florida homeowner now pays around $6,000-$8,000 annually for coverage that used to cost $2,000–$3,000 a decade ago. In Miami-Dade County, policies routinely exceed $10,000 for standard single-family homes.
Stand’s entry won’t magically slash premiums to 2015 levels—climate risk is real and costs money to cover. But increased competition typically drives 10-15% price relief within 18-24 months as new entrants undercut incumbents to gain market share.
Can a Startup Actually Survive Florida’s Hurricane Lottery?
Here’s the math problem Stand must solve: Florida’s hurricane season delivers binary outcomes. Either you have a quiet year with 5-8% profit margins, or a Category 4 hits Miami and you’re suddenly paying out $500 million-$1 billion in claims.
Stand’s $1 billion in underwritten California value provides some financial cushion, but a single major Florida hurricane could wipe that out. Traditional insurers spread this risk through:
- Reinsurance: Buying coverage from global reinsurers like Swiss Re and Munich Re to cap catastrophic loss exposure. Florida insurers typically reinsure 60-70% of their hurricane risk.
- Cat bonds: Selling securities that pay high yields unless a specific disaster triggers, then investors lose principal to cover claims.
- State backing: Access to Florida Hurricane Catastrophe Fund, which provides reinsurance at below-market rates for qualifying insurers.
Stand’s success depends on three factors: accurate risk modeling to avoid underpricing, sufficient reinsurance to survive a major event, and enough premium volume to cover fixed costs during quiet years.
The wildcard is climate acceleration. If hurricane frequency continues increasing beyond historical models, everyone’s pricing breaks—including Stand’s. But traditional insurers face the same problem, which is why they’re exiting rather than adapting.
What This Means for Florida Homeowners Right Now
Should you switch to Stand Insurance? Not necessarily—yet. Here’s how to think about new market entrants:
Financial stability matters more than price. Check Stand’s AM Best rating (financial strength), claims-paying history, and reinsurance program before jumping ship. A 20% cheaper policy from a company that goes bankrupt after a hurricane leaves you uninsured when you need coverage most.
That said, having more options helps. Even if you don’t switch, Stand’s presence forces existing carriers to compete on price. Get quotes from multiple providers annually—Florida insurance markets move fast, and loyalty gets punished with 15-25% annual increases.
Coverage terms matter as much as premiums. Some insurers lower prices by excluding wind coverage, capping roof replacement at actual cash value instead of replacement cost, or adding high deductibles. Read the policy, not just the bill.
Consider these three moves:
- Get Stand quotes alongside your renewal quote this year—comparison costs nothing.
- Check eligibility for Citizens Property Insurance as backup if private market options disappear.
- Invest in wind mitigation upgrades (impact windows, roof reinforcement) that qualify for 20-40% premium discounts across all carriers.
The Bigger Picture: Climate Risk Reshapes U.S. Insurance Markets
Stand’s expansion illustrates a national trend. Over 26.1% of U.S. homes now face severe or extreme climate exposure—that’s $12.7 trillion in property value needing coverage as disaster frequency increases.
Traditional insurance models assumed disasters followed historical patterns. Climate change broke that assumption. Wildfires in California, hurricanes in Florida, flooding in Louisiana—events that used to be “100-year storms” now happen every 5-10 years.
Legacy insurers respond by retreating, raising prices, or offloading risk to government programs. Startups like Stand, Kin Insurance, and Slide Insurance are trying a different approach: using technology for better risk assessment, targeting specific disaster types, and pricing accurately instead of cross-subsidizing.
Will it work? Florida’s market will provide the test case. If Stand survives the next major hurricane while keeping premiums competitive, expect similar startups to launch in other high-risk states. If they fail, it confirms climate risk has grown too expensive for private insurance markets to handle profitably.
Either outcome matters. Because 1 in 4 American homes needs an answer to the climate insurance question, and traditional carriers aren’t providing one.
Frequently Asked Questions
Is Stand Insurance financially stable enough to cover Florida hurricane claims?
Stand Insurance has underwritten $1 billion in insured value since launching in December 2024, showing initial capital strength. However, their long-term stability depends on securing adequate reinsurance coverage and surviving their first major hurricane without exhausting reserves. Check their AM Best rating and reinsurance program details before purchasing coverage. Florida requires all insurers to maintain minimum capital reserves, but those minimums often prove insufficient during major catastrophic events.
How much could Stand Insurance save Florida homeowners on premiums?
While Stand hasn’t published specific Florida pricing yet, new market entrants typically offer 10-15% lower premiums than incumbents to gain market share. For the average Florida homeowner paying $6,000–$8,000 annually, that could mean $600–$1,200 in savings. Miami residents paying $10,000+ could potentially save $1,000–$1,500. However, actual savings depend on your home’s specific risk factors, location, and coverage needs. Get quotes from multiple carriers to compare—savings vary widely by property.
Should I switch from Citizens Property Insurance to Stand Insurance?
Citizens Property Insurance is Florida’s state-backed insurer of last resort—financially stable because it’s government-backed, but often more expensive than private options. If Stand or other private insurers offer comparable coverage at lower cost, switching makes sense financially. However, keep Citizens as your backup option. If Stand raises rates significantly after a major hurricane (common for new insurers after their first big loss event), you can return to Citizens during the next enrollment period. The key is getting multiple quotes annually and choosing the best value.
Why is Miami’s insurance-to-home value ratio the highest in America?
Miami combines four risk factors that drive up insurance costs: frequent hurricane exposure (major storms every 2-3 years), sea level rise adding flood risk, high reconstruction costs (up 40% since 2020), and dense coastal development concentrating insured value in vulnerable areas. When you’re paying to insure against multiple catastrophic risks simultaneously, premiums as a percentage of home value naturally increase. Add in Florida’s historical AOB fraud issues and limited insurer competition, and Miami residents face a perfect storm of insurance cost drivers.
What happens if Stand Insurance goes bankrupt after a major hurricane?
Florida operates the Florida Insurance Guaranty Association (FIGA), which covers claims up to specific limits if your insurer becomes insolvent. Current limits are $300,000 for homeowners dwelling coverage and $100,000 for contents. If Stand went bankrupt, FIGA would take over your claim within these limits. However, the process takes months, and you’d face delays getting repairs done when you need them most. This is why checking an insurer’s financial strength rating before purchasing matters—prevention beats cure.
Bottom Line: More Options, But Shop Carefully
Stand Insurance’s Florida expansion gives homeowners another choice in a market that desperately needs competition. With 26% of U.S. homes facing severe climate risks worth $12.7 trillion, the insurance availability crisis isn’t going away.
But new doesn’t automatically mean better. Before switching, verify Stand’s financial stability, compare coverage terms alongside premiums, and keep backup options like Citizens available. Get quotes from at least three carriers annually—Florida’s insurance market changes too fast to stay loyal to any single provider.
The real benefit might not be Stand’s pricing. It’s that their presence forces existing carriers to compete instead of taking captive customers for granted. Even if you stick with your current insurer, Stand’s entry could slow your next renewal increase.
Monitor Stand’s performance over the next 12-18 months, especially how they handle their first hurricane season. If they survive a major storm without massive rate hikes or solvency issues, they’ve proven their model works. If not, at least they tried solving a problem traditional insurers abandoned.