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After years of painful premium hikes, South Florida’s commercial property insurance market is finally showing signs of relief. Rates are starting to decline, sometimes by double digits, and for the first time in years, policyholders may have real opportunities to save. But this window may not remain open for long.
What Caused the Crisis?
South Florida’s property insurance landscape has been turbulent. Litigation abuse, catastrophic weather (including Hurricane Ian), and soaring construction costs all drove insurer losses. Many carriers pulled out of the state or became insolvent. Reinsurers raised prices, reducing available capacity and pushing rates even higher.
For homeowner and condo associations (HOAs and COAs), the strain has been even more intense. The tragic Surfside condominium collapse ushered in stricter inspection laws and revealed the risks of aging buildings and coastal corrosion. As Florida’s population has grown, up nearly 8% since 2020, the pressure on insurance capacity has only increased.
Why Are Things Improving Now?
Fortunately, insurance markets are cyclical. After several difficult years, conditions are beginning to shift.
Recent state legislative reforms aimed at curbing litigation abuse appear to be working. Since Ian, Florida has been spared major hurricane landfalls, which has given insurers the breathing room to recover from past losses and improve underwriting results. The reinsurance market has stabilized, and new insurers are entering Florida, bringing much-needed capacity and competition. All of this is helping to push rates down for commercial property owners and associations.
Act While You Can
While some businesses and associations are still paying unsustainable premiums, or reducing coverage to save money, others are now finding significant savings through policy reviews and smart restructuring.
This moment may not last. Many of the root causes of the insurance crisis remain. If a major storm strikes or carriers don’t see profitable results, they may retreat once again, and prices could spike.
That’s why now is the time to act.
A professional policy review can help determine whether:
- You qualify for lower rates. Premium reductions of 10–20% (or more) are possible in today’s market.
- Your coverage is adequate. Many policies are underinsured due to rising property and repair costs.
- Your policy terms are favorable. With more carriers competing for business, better terms may now be available.
Don’t wait for another storm or market shift to act. A brief review today could yield major cost savings and better protection for years to come.
Doug Sawyer is a native Miamian and property insurance specialist with Century Risk Advisors. Before entering the insurance field, he held senior leadership roles in commercial banking, wealth management, and retail finance. For a confidential policy review, contact Doug at douglas.sawyer@centuryra.com.
