Citizens takeouts begin in December: Two more home insurers approved to sell policies in Florida

"Stand Insurance Exchange, a California-based insurer, and Praxis Reciprocal Exchange, headquartered in Tampa, are the 16th and 17th new entities to enter Florida's market since legislative reforms were enacted in 2022 and 2023, the state Office of Insurance Regulation announced in a news release on Thursday. The 17 companies bring a combined $574 million in policyholder surplus to further shift coverage burdens away from state-owned Citizens Property Insurance Corp. and into the private sector."

"Insurance lines that will be offered by the two new companies include fire, allied lines, homeowners multi-peril, inland marine, other liability. Each will participate in Citizens' depopulation program by taking out 25,000 Citizens policies in December, the release said. Both companies will operate as reciprocal exchanges, meaning the companies are owned by their policyholders, known as subscribers, and operated by subscriber advisory committees and attorneys-in-fact."

"According to its website, Stand was formed by a quartet of Silicon Valley entrepreneurs "determined to find a solution for the nearly half a million Californians dropped by insurance companies because their homes were classified as high fire risks." The company began offering wildfire coverage to California homeowners in 2024. While the Florida division's principal office is in Tallahassee, the state's Division of Corporations website lists its managing member as Stand Protect Inc., of San Francisco."

Stand Insurance Exchange and Praxis Reciprocal Exchange received approval to sell multiple insurance lines in Florida, becoming the 16th and 17th new market entrants following 2022–2023 reforms. The 17 new companies collectively add $574 million in policyholder surplus to shift coverage burdens from Citizens Property Insurance Corp. to private carriers. The two firms will offer fire, allied lines, homeowners multi-peril, inland marine and other liability coverages; Praxis will also offer boiler and machinery. Each company will take 25,000 Citizens policies in December. Both will operate as reciprocal exchanges requiring subscribers to deposit 10% of premiums to policyholder surplus funds. Stand originated in Silicon Valley to address wildfire coverage gaps and began offering wildfire coverage in California in 2024; its Florida division lists Stand Protect Inc. as managing member.

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