Industry Insight: Florida Property Premiums Fall as Multifamily Liability Rises

Overview: A Split Market for Florida Multifamily Insurance

Most coverage of Florida's post-reform insurance market has focused on homeowners' property rates. A recent Insurance Journal report by William Rabb looks at a segment that has received less attention: multifamily dwellings. That category includes duplexes, fourplexes, and large apartment complexes with hundreds of residents. The report relies on data from Advocate Technologies, an analytics firm that tracks commercial and commercial residential rates for the insurance industry.

The headline finding is a divergence. Property premiums for Florida multifamily risks have dropped sharply over the last two years, while liability pricing has moved in a different direction. For public adjusters, claims professionals, and policyholders, the split is a useful reminder that a softening property market does not mean every line of coverage is getting cheaper.

Background: Scale and Market Pressures

Florida has an estimated 1.7 million multifamily units, and more are being built. According to the report, the segment also faces new pressures. Research including a University of Florida report indicates that rents have dropped in some areas amid an oversupply of units.

The article ties the property rate decline to Florida's 2022 and 2023 legislative reforms. Those reforms are described as having had a significant impact on property insurance by disincentivizing excessive claims litigation. The same data suggest that liability claims and lawsuits continue to cost insurers and insureds, at least in the multifamily segment.

Key Findings: Property Rates

The Advocate data cover more than 1,000 Florida properties. For multifamily property insurance across all categories of structures and coverage, except condominiums, and with primary and excess coverage included, the figures are:

• Median premium per door: down from $797 in early 2025 to $479 in April of this year.
• Comparison to the region: the early 2025 figure was almost double the rate in other Southeastern states.
• Lowest-priced carriers: Steadfast Insurance, Axis Specialty Europe SE, Mt. Hawley Insurance, XL Insurance America, and Old Republic Union Insurance all offered median rates well below the state average.

Other Southeastern states saw more modest movement in multifamily property rates:

• Georgia: the median fell from $430 about 18 months ago to $360 this spring.
• Texas: the median this spring was $516, up slightly from 2025.

Key Findings: Liability Rates

According to the report, liability pricing for multifamily has followed a different path. Even as Florida and Georgia lawmakers adopted tort reform measures aimed at limiting litigation costs and large verdicts, multifamily liability premiums have fluctuated. The report says liability prices have climbed, partly because of litigation and large lawsuit awards.

Advocate's own analysis, quoted in the article, frames the difference this way:

Property softening is cyclical and can reverse on one bad catastrophe season. Casualty hardening from social inflation and larger jury verdicts is considered structural. Until that changes, liability's share of the book should keep growing even without new business.

Advocate's database draws on more than 100,000 policies and 7,000 carriers nationwide and is updated regularly. The liability figures are modest in absolute terms: Florida's median liability premium per door rose from $167 about 18 months ago to $169 this spring, and Georgia's rose from $119 to $151 over the same period.

Impact on Public Adjusters and Claims Professionals

Property softening is not guaranteed to last

The report describes the property decline as cyclical. A single bad catastrophe season could reverse it. Public adjusters advising multifamily owners or managers should avoid treating current pricing as a permanent condition. Coverage terms, limits, and deductibles deserve the same scrutiny in a soft market as in a hard one.

Carrier mix matters

The report names several carriers with median rates well below the state average. Lower pricing can reflect many things, including differences in structure, coverage terms, and layering of primary and excess coverage. When a client's policy changes carriers, the claim-handling process, policy language, and conditions can change with it. Review the actual forms rather than relying on price alone.

Liability pressure can spill into property claim disputes

Property and liability exposures often arise from the same loss event at an apartment community, such as a water intrusion, fire, or storm. When liability costs are rising, expect close attention to how a loss is documented, who is responsible for what, and what notice was given. Careful, contemporaneous documentation helps on both sides of the policy.

Rent and occupancy pressures raise the stakes on business income and loss of use

With rents falling in some areas amid oversupply, owners may be less able to absorb the cost of an underpaid or delayed claim. Accurate scoping of repair costs and any rent loss or loss-of-use components is especially important for properties operating on thinner margins.

Practical Takeaways

• Look at the whole program. A lower property premium may sit alongside higher liability costs. Evaluate total cost and coverage together.
• Do not assume softening will persist. Plan renewals with the possibility of a reversal after a bad catastrophe season.
• Read the forms. Compare policy language, exclusions, and conditions when carriers change, not just the per-door price.
• Document losses thoroughly. Photographs, dated records, maintenance histories, and written notice all matter in multifamily losses.
• Track notice and deadlines. Large, multi-building loss events can involve many units and moving parts. Missed notice or proof-of-loss requirements can create avoidable disputes.

How Louis Law Group Can Help

Louis Law Group represents policyholders in Florida property damage disputes, including claims involving underpayment, delay, and denial. If you are a public adjuster, property manager, or owner dealing with a multifamily loss, or you want a second look at a claim that is not resolving fairly, our team can review the policy and the claim file and explain your options.

Call (833) 657-4812 to speak with our team about your claim.

This article is for general informational purposes and is not legal advice. It summarizes reported industry data and does not create an attorney-client relationship.

Source: Insurance Journal - Florida Reforms Cut Property Premiums but Data Show Multifamily Liability Rates Up