Captive insurance is becoming a serious consideration in the multifamily space, and for good reason. For some property owners, it can reduce costs, unlock a new revenue stream, and provide greater control over risk management. But knowing how—and when—to use a captive isn’t always clear.
At Foxen, we’re creating a clear path forward to form captives. With the launch of WaiverCell, we’re giving property owners and operators the ability to self-insure against tenant-caused property damage—without having to build a captive from scratch.
Leading the effort is our Chief Legal and Insurance Officer, Kelli Stiles, who brings a wealth of legal and operational experience. Before joining Foxen, Kelli spent nearly a decade at Nationwide Insurance, where she helped design and distribute property and casualty products for customers across the country. She started her legal career at Jones Day, advising major companies through complex legal challenges, and now leads Foxen’s Insurance Solutions team.
I sat down with Kelli to talk about what captives in real estate are, why they’re gaining traction in the industry, and how Foxen is simplifying the process.
Austin: Let’s start with the basics. What is a captive, and why are more property owners considering creating one?
Kelli: A captive is essentially an insurance company that’s owned and controlled by the business it insures. Instead of buying insurance from a traditional carrier, you form your own insurance company and self-insure. It gives you more control over your risk, your premiums, and how claims are handled. And if it’s managed well, it allows you to retain the underwriting profits that would normally go to a commercial insurer.
Austin: It feels like there’s a growing appetite for that kind of control right now—especially with how much traditional insurance costs have climbed.
Kelli: Exactly. We’re seeing rising premiums, narrower coverage, and more friction in claims—especially when it comes to tenant-caused property damage. Owners are frustrated. For those with enough scale and risk discipline, self-insuring starts to look like a very real alternative. But it’s not easy to set up on your own, and that’s where we saw a real opportunity to help.
Austin: Is this what led to the creation of Foxen WaiverCell?
Kelli: Yes. We have already been running our own captive since the beginning of Foxen to reinsure the risk from our WaiverCore product. Over time, we built the operational muscle: regulatory filings, policy issuance, claims partnerships, producing quarterly financial statements, preparing and filing annual reports, and preparing for annual audits —you name it. At the same time, more of our customers have started asking if we could help them build something similar.
That’s when we launched WaiverCell—a way for multifamily owners and operators to access all the benefits of a captive without having to build it themselves. We provide a protected cell structure, coordinate all the setup and service providers, and wrap it in the same renters insurance compliance monitoring and liability waiver program support our clients already trust us to deliver through WaiverCore.
Austin: What kind of property ownership group is WaiverCell built for?
Kelli: It’s really for owners who have scale, a strong handle on their risk, and want to take control of their coverage for tenant-caused property damage. If they’re not quite ready, they can start with WaiverCore and transition later once their portfolio or loss profile supports it.
Austin: Are there other types of captives besides WaiverCell that Foxen supports?
Kelli: Yes. Waiver Cell is an offering within a protected cell captive—meaning each customer gets their own “cell” within our broader structure. But there are other types of captives that Foxen supports. For example, single-parent captives, where a company creates and owns its own standalone captive. For very large operators with broader insurance goals, a single-parent captive might make sense—and if that’s the case, we’ll connect them with trusted third-party captive managers.
Austin: What are the real benefits of creating a captive instead of sticking with traditional insurance?
Kelli: There are a few benefits:
- Pricing stability—because you’re not subject to the market’s ups and downs.
- Better claims control—because you select your claims administrator and can better influence the quality and timeliness of their service to you.
- And revenue potential—if losses are managed well, you can retain underwriting profits instead of giving them to a third-party insurer.
That said, it’s not a fit for everyone.
Austin: What do owners need in place before they consider forming a captive?
Kelli: First, enough scale and premium volume to make it viable. Second, enough capital to fund the reserves and regulatory requirements. Third, a solid claims history—or at least a plan to improve it. And fourth, the operational resources to manage it, whether that’s internally or through partners like Foxen.
Austin: What do you think is the biggest misconception people have about captives?
Kelli: One is that it’s just too complicated, so they never even explore it. The other is that it’s an easy revenue generator. In reality, it’s a long-term strategy. You’re forming a regulated insurance company—it comes with compliance, capital requirements, governance, and underwriting risks. But with the right structure and support, it can absolutely drive long-term value.
Austin: What makes Foxen’s approach unique?
Kelli: We’ve done this ourselves. We’re not just theorizing—we’ve built and managed our own captive and now support others through every phase of the process. And because we’re also a licensed insurance agency in all states, we can handle brokerage and compliance monitoring, too. It’s a full-stack solution, built specifically for multifamily.
Austin: It’s been incredible to watch Foxen’s renters insurance compliance solution suite evolve. Is there anything you’re particularly excited about on the horizon?
Kelli: I’m really excited about where WaiverCell can go—especially as more owners look for ways to control costs and differentiate their resident experience. We're also exploring additional coverage types and value-adds that can tie into the same ecosystem. It’s all about simplifying risk management while adding value across the board.
Thinking about implementing a captive solution for your portfolio?
Whether you're ready to self-insure or just starting to explore the concept, Foxen offers a clear path forward with the tools and support to help you succeed with our Waiver Solutions suite.
Let’s make self-insurance simple. Talk to our team today.
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