TL;DRFlorida coastal commercial property rates rose 40–120% between 2023 and 2026 as admitted carriers exited and reinsurance costs doubled. Most coastal property is now written through E&S wholesalers (Jencap, RT Specialty, Amwins) with separate wind-only or wind-deductible structures. Flood is almost always a separate NFIP or private flood policy.
How coastal property coverage gets built
- Commercial Package or BOP. Covers named perils excluding wind in hurricane zones.
- Wind/Hurricane policy or endorsement. Separate or schedule-based. Percentage deductible (typically 2–5% of TIV).
- Flood — NFIP. $500K building / $500K contents max (commercial). For amounts above, you need private flood.
- Private Flood / Excess Flood. Neptune, Wright, Palomar. Often cheaper than NFIP for newer properties.
- Umbrella. Drops over GL and auto, not property directly.
Why rates went vertical 2023–2026
- Hurricane Ian (2022) triggered $50B+ in insured losses
- Florida litigation reform didn't fully stabilize until 2023
- Global reinsurance costs doubled
- Demotech downgrades pushed homes to Citizens or E&S
- Several admitted carriers (Farmers, Bankers, United Property) withdrew from FL coastal entirely
Full coastal market update · Why carriers exited.
Wind deductibles — the percentage trap
Unlike fixed-dollar deductibles, wind is almost always percentage-based on total insured value.
| TIV | 2% Deductible | 3% Deductible | 5% Deductible |
|---|
| $1M | $20K | $30K | $50K |
| $10M | $200K | $300K | $500K |
| $25M | $500K | $750K | $1.25M |
Most coastal HOAs and commercial properties are underfunded for this retention. Coastal HOA hurricane deductible guide.
NFIP vs private flood
NFIP caps: $500K per building commercial. Private flood (Neptune, Wright, Palomar) often provides higher limits, lower deductibles, and — for post-FIRM construction — lower premiums. We quote both on every coastal property.
Risk classes we place
Oceanfront condosBeach hotelsCoastal HOAsMarinasVacation rental LLCsCoastal restaurantsWarehouses <1mi coast
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Get a Free Risk Review →Frequently Asked Questions
Why did my coastal property premium double?
Reinsurance costs doubled, Hurricane Ian triggered massive insured losses, and multiple admitted carriers withdrew from Florida coastal entirely — leaving demand far above supply. Rates stabilized modestly in 2025 but remain 80–150% higher than 2020.
What's a wind deductible?
A separate deductible that applies only to named-storm or wind losses. Typically 2–5% of the property's total insured value (TIV), not a flat dollar amount. On a $10M property at 3%, your out-of-pocket on any wind claim is $300K before carrier dollars pay.
Is flood included in property insurance?
No — flood is always a separate policy. NFIP caps commercial buildings at $500K. Above that you need private flood. NFIP rates are set federally; private flood is underwritten by each carrier and often cheaper for newer, elevated construction.
Can I still get Citizens Property Insurance?
Citizens is Florida's insurer of last resort. You can only get Citizens if no admitted carrier will write you at less than 120% of Citizens' rate. As of 2026, depopulation efforts have reduced the Citizens book significantly.
What about Demotech vs AM Best rated carriers?
Mortgage lenders generally require A-rated carriers (AM Best). Demotech 'A' (Exceptional) is accepted by Fannie/Freddie for Florida homeowners but some commercial lenders still refuse Demotech. Verify lender acceptance before binding with a Demotech-only carrier.
Do I need hurricane insurance if I have homeowners?
Homeowners covers wind in most states, but Florida, coastal SC, and coastal NC often write wind as a separate or endorsed policy. Check your declarations for a separate 'Hurricane Deductible' line — if present, you have wind coverage with that percentage retention.