Standard carriers have been tightening underwriting on commercial property risks in Tennessee and South Carolina for the past two years. Severe convective storms have narrowed eligibility bands in both states, leaving older buildings, properties with prior losses, and habitational risks increasingly difficult to place. Honeycomb Insurance is now writing in both states, pricing each property individually through a digital platform rather than by broad territory.
The Chicago-based insurer, which specializes in apartment buildings and condominium associations, began writing policies in Tennessee and South Carolina this month. Coverage spans admitted and non-admitted habitational products plus excess liability, all accessible through a single platform. An expanded eligibility tier covers buildings with older roofs, prior losses, or coverage lapses, the risk profiles that standard carriers have increasingly declined to write.
Honeycomb's platform allows brokers and agents to check initial eligibility with only a property address, then quote and bind coverage in minutes. The company underwrites each property using AI models, geospatial data, aerial imagery, and building history. That approach allows Honeycomb to price well-managed buildings on their own merits, including properties other carriers routinely decline.
"Tennessee and South Carolina are important markets where agents need more consistent options for placing well-managed commercial properties," CEO Itai Ben-Zaken said. "Our technology allows us to evaluate every property on its own merits, and our platform offers fast, accurate pricing and stable coverage, including for many properties that traditional carriers often overlook."
The Tennessee and South Carolina move follows Honeycomb's $40 million funding round in June, led by Zeev Ventures. That round brought total capital raised to $95 million and was earmarked for geographic expansion and agent-facing tool improvements. The company exited 2025 with $275 million in gross written premium, according to its own disclosures.
Honeycomb now covers approximately $150 billion in insured real estate value across 26 states. In August, it launched a lessor's risk only product for office and retail properties. That move reflected a broader pattern: program managers have been filling habitational gaps as retail insurers pull back from the multifamily space.
Severe convective storms have made Tennessee one of the most expensive states for property insurance. A June LendingTree analysis put the average annual homeowners premium at $3,408, ranking the state seventh nationally. In South Carolina, rising reinsurance costs and carrier pullbacks have driven double-digit premium increases statewide, according to a 2026 market overview from Brooks, Todd and McNeil.
