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However, it’s too early to say for sure if this is the end of South Florida’s insurance crisis or merely a lull before rate hikes pick up again. To lock in more affordable coverage, policyholders should act quickly.

South Florida’s Hard Insurance Market

In recent years, insurance prices increased across the country due to a combination of factors, including higher construction and labor costs, rising reinsurance rates and surging losses from catastrophic weather. However, the insurance market in Florida, and particularly in South Florida, has been especially hard.

Florida’s hurricane exposures are part of the reason. Hurricane Ian led to billions of dollars in insured losses. Then, to make matters worse, several Florida insurers went insolvent, resulting in reduced insurance capacity, less competition among carriers, and ultimately, higher costs.

At the same time, Florida has battled with litigation abuse, rising claims costs, and the aftermath of the Surfside condominium collapse – a tragedy that accentuated the dangers of aging buildings and coastal corrosion. On top of all of this, Florida’s population has been growing, so there’s increased demand for property insurance but not enough coverage capacity to meet that demand.

The Tide Is Turning

Now, in 2025, Florida’s commercial property insurance rates are finally starting to fall.

Several developments are contributing to a softer property insurance market. Noticeably, inflation has abated, reinsurance rates have stabilized and underwriting performance is improving. Although average commercial property insurance rates are still rising in the U.S, conditions are moderating.

In Florida, the situation is also improving. Legislative reforms appear to be having a positive effect. Natural disasters and coastal erosion are still threats, but Florida has been spared major hurricane landfalls since Hurricane Ian. New insurers are entering the Florida market, providing additional capacity and competition. Overall, the market has improved tremendously, and some policyholders are experiencing notable premium reductions.

This Opportunity May Not Last

Commercial property owners and condominium associations have an opportunity to secure more affordable coverage that better suits their needs, but this opportunity may not last. Insurance market cycles are always evolving, and there’s no knowing when the next hurricane or carrier exit will trigger a new hardening of the mark

Don’t wait. Secure a professional policy review to determine whether you can obtain:

• Lower rates. Many policyholders are seeing premium reductions.

• More robust coverage. If you’ve been making do with lower limits and higher deductibles, just hoping that you wouldn’t experience a major loss, now is a good time to think about securing more robust coverage.

• More favorable terms. During hard markets, insurers may introduce exclusions and limits that restrict your available coverage. When the market softens and carriers compete for business, it’s often possible to secure more favorable terms that provide broader coverage.

Hopefully, Florida will be spared from major hurricanes for a while, and the insurance market will continue to soften – but don’t count on it. If a storm hits, you’ll want the most robust coverage available in place. Act now to make sure you have it.

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. Doug can be contacted at  douglas.sawyer@centuryra.com.