Owners of multifamily properties in Florida already dealing with increased insurance premiums can count on paying even more after Category 3 Hurricane Idalia hit the Gulf Coast last month. 

Florida, which has more hurricanes than any other state, has seen multifamily property insurance rates climb between 30 to 70 percent in 2023, fueled by Hurricane Ian’s $53 billion in insured damages in 2022. Rates are even higher for policy holders with prior losses, non-renewing carriers or valuation issues. 

Florida property insurance costs have gone up across the board, but hit the multifamily sector hardest because they are usually wood-frame structures with higher potential for damage, and high tenancy rates generate more claims. 

Not only is coverage more expensive, but it’s harder to find. Fewer insurers are willing to underwrite policies, and more insurance firms are pulling out of Florida because of the risk of heavy losses.

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