Your Florida home worth $750,000 sits in a hurricane zone. Three insurers rejected your application last month. Now a California tech startup says AI can insure it.
Stand Insurance just announced its expansion into Florida’s hurricane belt, targeting homes priced $500,000 to $2 million. The company uses artificial intelligence to assess wildfire and flood risk—problems that drove traditional insurers out of high-risk markets. While competitors fled California and Florida, Stand moved in.
The timing matters. Florida’s state-backed insurer, Citizens Property Insurance Corp., plans to shed 510,000 policies by year-end through its “depopulation” program. Those homeowners need coverage fast. Stand Insurance aims to fill that gap using technology most insurers avoid: AI-driven risk modeling that makes “uninsurable” homes insurable again.
Why Florida Became America’s Insurance Nightmare
The numbers tell a brutal story. Cotality’s 2025 hurricane risk report found 8.1 million Florida homes face moderate or greater hurricane/wind damage risk. Rebuilding those properties would cost upward of $2.3 billion.
Traditional insurers couldn’t stomach those odds. High litigation costs made Florida even less appealing—when hurricanes hit, lawsuits follow. Major carriers like State Farm and Allstate reduced their Florida footprints or stopped writing new policies entirely.
That left Citizens Property Insurance Corp. holding the bag.
As Florida’s insurer of last resort, Citizens ballooned into the state’s largest home insurance carrier—a role it never wanted. The organization exists to provide coverage when private markets fail, not to dominate them. Its current depopulation effort aims to transfer half a million policies back to private insurers by December 2025.
But who takes those policies? Enter Stand Insurance and its AI advantage.
Stand Insurance’s Tech-First Approach to Climate Risk
Stand Insurance operates differently than legacy carriers. The California-based startup built its business model around properties other insurers won’t touch: homes in wildfire zones, flood plains, and hurricane corridors.
Their secret? AI that analyzes risk factors traditional underwriters miss or overestimate.
- Wildfire mitigation scoring: AI evaluates defensible space, roof materials, and proximity to fire-prone vegetation with satellite imagery updated monthly, not annually.
- Flood modeling beyond FEMA maps. Stand’s algorithms incorporate rainfall patterns, drainage systems, and elevation data FEMA flood maps don’t consider.
- Hurricane-resistant construction detection through building permit data, material specs, and impact-rated window installation records that reduce wind damage probability.
- Real-time risk adjustment. If you clear brush or upgrade your roof, AI recalculates your premium within days.
This approach lets Stand offer coverage where competitors see only losses. A Miami Beach condo worth $1.2 million might get rejected by five carriers but qualify through Stand’s system if it has hurricane shutters, reinforced garage doors, and meets current building codes.
California Proof of Concept
Stand tested its model in California’s fire zones first. While major insurers pulled back from wildfire-prone areas, Stand moved into those markets using AI to separate truly risky properties from homes that just happen to sit in red zones on outdated maps.
The California experience taught Stand something crucial: many “high-risk” homes aren’t as risky as blanket geographic ratings suggest. A house with a metal roof, 30 feet of cleared defensible space, and ember-resistant vents faces far less wildfire danger than a wood-shake roof property with overgrown vegetation—even if both sit in the same ZIP code.
That granular risk assessment now moves to Florida. Stand will provide hurricane and wind protection for homes and condos in the $500,000 to $2 million range, focusing on properties with structural advantages traditional carriers ignore.
Florida’s Insurance Market Finally Stabilizing?
Stand’s expansion coincides with signs Florida’s insurance crisis might be easing. Rate increases have slowed. More carriers are offering policies. Citizens is successfully moving policies off its books.
What changed?
| Reform Category | Impact |
|---|---|
| Legal reforms | Reduced frivolous lawsuits that inflated claim costs |
| Regulatory changes | Streamlined rate approval process for new market entrants |
| Reinsurance market | Global reinsurers returning to Florida after years away |
| Building code updates | Newer homes built to stricter hurricane standards lower overall risk |
Florida lawmakers passed tort reforms limiting attorney fees in property insurance cases. That change alone made the state more attractive to carriers who’d fled litigation costs. Regulators also expedited approval processes for new insurers, allowing companies like Stand to enter the market faster than previously possible.
The result: Citizens’ depopulation program is working. By transferring 510,000 policies to private insurers by year-end, the state reduces its exposure to catastrophic hurricane seasons that could bankrupt a government-run insurer.
Stand Insurance becomes one of several carriers stepping up. But unlike traditional insurers simply expanding Florida operations, Stand brings technology that could fundamentally change how insurers price hurricane risk.
What This Means for Your Home Insurance Options
If you own a home in Florida’s coastal counties or California’s fire zones, Stand’s market entry could lower your premiums—or at least give you options where none existed.
However, understand the limitations.
Stand targets the $500,000 to $2 million home value range. If your property falls outside that bracket, you won’t qualify. The company also requires homes to meet specific structural standards. No amount of AI can make a 60-year-old house with a rotted roof insurable at reasonable rates.
The homes most likely to benefit from Stand’s AI approach:
- Properties in high-risk zones that have been upgraded with hurricane-resistant features like impact windows, reinforced roofs, or storm shutters within the last 10 years.
- Newer construction (built after 2005) meeting current Florida Building Code requirements that traditional insurers still rate as high-risk based solely on location.
- Homes where owners completed wildfire mitigation work—cleared brush, upgraded roofs, installed ember-resistant vents—but couldn’t get premium credits from their old insurer.
The AI advantage? Stand’s system recognizes and rewards risk reduction measures faster than annual policy reviews at legacy carriers. Complete a roof upgrade in March, and Stand recalculates your rate in April. With traditional insurers, you might wait until your December renewal to see premium savings.
Shopping Stand vs Traditional Coverage
Don’t assume AI-powered insurance automatically costs less. In some cases, Stand’s premiums might exceed traditional carriers if your home truly carries high risk that you haven’t mitigated.
The value proposition isn’t always price. It’s access.
When five carriers reject your application because of your ZIP code, Stand might approve it based on your property’s specific characteristics. That access carries value, especially in Florida’s tight insurance market where coverage gaps can derail home sales or refinancing.
The Bigger Picture: AI Reshaping Insurance Markets
Stand Insurance represents a broader trend: technology companies entering insurance sectors where traditional carriers struggle with climate risk.
Legacy insurers built their risk models on historical data. When climate patterns shift faster than historical models predict, those insurers either raise premiums dramatically or exit markets entirely. Both responses leave homeowners stranded.
AI-driven insurers like Stand use real-time data and granular property assessments. They can price risk more precisely, which theoretically allows them to operate profitably in markets others abandon. Whether that model survives a Category 5 hurricane remains to be seen—Stand hasn’t weathered a major catastrophe yet.
The Insurance Information Institute notes that climate risk will force more innovation in coming years. Stand’s approach might become standard industry practice, or it might prove too risky when the inevitable major hurricane makes landfall.
For now, Florida homeowners have one more option. Whether that option lasts depends on Stand’s ability to price risk accurately enough to stay solvent when storms hit.
Should You Switch to Stand Insurance?
If you’re currently insured through Citizens or another carrier, don’t rush to switch based on technology hype alone. Compare actual quotes, coverage terms, and financial strength ratings.
Stand Insurance is a newer company without the decades-long track record of State Farm or Allstate. That doesn’t mean they’re unreliable—it means you should verify their financial backing and reinsurance arrangements before committing.
Check A.M. Best ratings for Stand’s financial strength. New insurers sometimes offer attractive rates to gain market share, then struggle when claims spike. You want an insurer that survives hurricane season, not one that goes insolvent after major losses.
Ask these questions when considering Stand or any new insurer:
- What’s their claims-paying ability rating? A.M. Best assigns letter grades (A++ being highest) based on financial strength.
- Who provides their reinsurance? Insurers transfer catastrophic risk to reinsurers. Strong reinsurance partnerships matter during major hurricanes.
- What’s their maximum coverage limit? If your $1.5 million home needs $2 million in coverage (including contents), verify Stand can provide it.
- How do deductibles compare? Lower premiums sometimes come with higher hurricane deductibles (often 2-5% of home value).
The Citizens depopulation program requires transferred policyholders to receive comparable coverage at comparable rates. If you’re among the 510,000 policies moving from Citizens to private insurers, you have rights to refuse transfers that significantly increase your costs.
Frequently Asked Questions
What makes Stand Insurance different from traditional home insurers?
Stand Insurance uses AI to analyze property-specific risk factors like wildfire mitigation measures, flood vulnerability, and hurricane-resistant construction features. Traditional insurers often rely on ZIP code-based risk assessments that treat all homes in an area equally. Stand’s technology allows more granular pricing, potentially offering coverage to homes other insurers reject based solely on location. The company targets properties worth $500,000 to $2 million in high-risk areas of California and Florida.
How many Florida homeowners are affected by Citizens’ depopulation program?
Citizens Property Insurance Corp. expects to transfer more than 510,000 policies to private insurers by the end of 2025. This “depopulation” program aims to reduce the state-backed insurer’s exposure and return the company to its intended role as insurer of last resort rather than Florida’s largest home insurance carrier. Affected policyholders will receive notices about their coverage transfers and have rights to refuse transfers that significantly increase costs or reduce coverage.
Why did major insurers leave Florida’s home insurance market?
Multiple factors drove insurers out of Florida: elevated hurricane risk affecting 8.1 million homes, high litigation costs from property insurance lawsuits, and catastrophic loss potential estimated at $2.3 billion for rebuilding damaged properties. Companies like State Farm and Allstate reduced Florida operations when claim costs exceeded premiums collected. Recent legal reforms limiting attorney fees and regulatory changes have begun attracting insurers back to the market, creating opportunities for new entrants like Stand Insurance.
Will AI-based insurance lower my premiums in high-risk areas?
Not automatically. Stand Insurance’s AI assesses your specific property rather than relying solely on location-based risk. If you’ve invested in hurricane shutters, impact-resistant windows, a reinforced roof, or wildfire mitigation measures, AI-based pricing might reward those improvements with lower premiums compared to carriers that ignore property-level upgrades. However, if your home lacks protective features, AI analysis might actually result in higher premiums than traditional geographic rating. The main advantage is access—AI insurers may offer coverage where traditional insurers won’t, even if pricing isn’t dramatically lower.
What home value range does Stand Insurance cover in Florida?
Stand Insurance targets homes and condos valued between $500,000 and $2 million in Florida. Properties below $500,000 or above $2 million fall outside their current underwriting guidelines. This range captures a significant portion of Florida’s coastal real estate market where traditional insurers have reduced coverage availability. If your property value exceeds $2 million, you’ll need to seek coverage from luxury home insurers or specialty carriers rather than Stand.
Bottom Line
Stand Insurance’s Florida expansion offers hope to homeowners stuck in coverage gaps created when traditional insurers fled hurricane risk. The company’s AI-driven approach to assessing wildfire, flood, and wind damage risk could make the difference between getting insured and getting rejected.
But don’t mistake technology for a magic solution. AI pricing still depends on your property’s actual risk factors. A poorly maintained home in a flood zone won’t suddenly become affordable to insure just because algorithms analyze it.
The real benefit? More competition in markets where homeowners desperately need options. As Citizens transfers 510,000 policies to private insurers and companies like Stand enter Florida, coverage availability should improve. Whether premiums drop remains an open question.
For now, Florida and California homeowners in the $500,000 to $2 million range have one more insurer to quote. Shop carefully, compare coverage terms, and verify financial strength before switching. The insurance market is changing, but it’s still your responsibility to choose wisely.