Multifamily Dwelling Insurance Trends in Florida and Liability Costs

The multifamily dwelling insurance market in Florida is evolving in the wake of legislative reforms and shifting insurance dynamics. While property insurance premiums have decreased, liability costs are climbing, reflecting broader trends that professionals in the insurance industry must navigate.

In Florida, multifamily properties, which encompass everything from duplexes to large apartment complexes, account for roughly 1.7 million units. There has been substantial construction despite rental prices dipping in some areas due to excess supply. Advocate Technologies, a data analytics firm specializing in commercial insurance, has reported a significant decline in property insurance premiums for these dwellings over the past two years. However, liability insurance remains costly, largely driven by litigation and jury awards. While recent legislative measures targeting property insurance litigation seem effective, they have not yet curbed liability claims.

Florida's Insurance Premium Trends

According to Advocate Technologies, the median property insurance premium per unit in Florida fell from $797 in early 2025 to $472 by April this year. This decrease has made carriers like Steadfast Insurance and Axis Specialty Europe SE notably competitive, offering below-state-average rates. Such declines echo trends seen in other Southeastern states like Georgia and Texas, where insurance rates have similarly dropped, albeit to varying degrees. In contrast, South Carolina's rates have climbed from $544 to $606.

Liability Insurance Challenges

While property insurance premiums are declining, liability insurance rates are less predictable. In Florida, median liability premiums increased from $167 to $229 per unit over the past 18 months. Similar trends were observed in Georgia, though rates have slightly declined recently. Despite legislative reform efforts to manage litigation costs, liability pricing continues to be driven by litigation trends more than crime rates or statistics.

"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."

Understanding the Liability Landscape

Florida's higher liability rates are attributed to premises liability cases concerning issues like mold, fires, and inadequate maintenance, rather than crime rates alone. These factors make liability insurance a rising concern for industry professionals. Nevertheless, the overall decrease in property insurance premiums has alleviated some of the pressure created by increasing liability costs, providing a net benefit to the multifamily market in Florida.

Market Implications and Industry Outlook

The insurance landscape for multifamily properties in Florida remains fluid. Advocate Technologies, established in 2020 under CEO Ashwin Agarwal, offers regular insights into these patterns, helping industry stakeholders adapt to changing conditions. Understanding the intricate shifts between property and liability insurance is essential for insurance agents, agencies, and carriers as they navigate this evolving market.