Raymond Tahhan, CEO of Summit Restoration, a leading Florida firm specializing in property recovery.
Florida has long attracted waves of real estate investment, population growth and commercial expansion. But beneath the sunshine and skyline is a silent disruptor: property insurance.
As CEO of a restoration company operating across Florida, I’m beginning to see a reshaping of how and where growth can happen in the state as rates soar and coverage becomes harder to secure. For developers and business owners, the rising cost and complexity of insurance is no longer just a budget line—it’s becoming a deciding factor in whether a project, a purchase or even a business is possible.
The Perfect Storm: Why Premiums Are Soaring
In recent years, Florida has faced a combination of challenges that have pushed insurance premiums to record levels. The increased frequency and intensity of hurricanes, combined with inflated rebuilding costs and a volatile reinsurance market, has made underwriting risk in Florida more expensive than ever.
In addition, a complex legal environment and a history of high claim volumes have created operational challenges for many insurers, prompting some to scale back or withdraw from the Florida market—reducing both availability and competition in the industry.
In some parts of the state, I’ve seen commercial policies rise by over 200% at renewal—if coverage is even offered. Many clients are forced to accept restrictive terms or go without insurance entirely, creating ripple effects for lenders, landlords and local economies.
Development On Hold
As insurance becomes more expensive and harder to access, I’m seeing developers pump the brakes on projects that, on paper, made perfect sense. Some investors are shifting away from Florida altogether, citing insurance costs as a deal-breaker.
Even in fast-growing urban zones, multi-family and commercial real estate developers are having to recalculate project viability based on insurability. In some cases, a policy premium can make or break a deal—regardless of the location’s long-term growth potential.
The Cost For Small-Business Growth
At my company, we see this challenge daily. Small and midsized businesses are feeling squeezed by rising costs and shrinking coverage. For many property owners we work with, storm damage is no longer just a construction issue—it’s an insurance battle. Claims are delayed, underpaid or denied entirely, leaving businesses in limbo.
I’ve seen businesses abandon rebuilds, not because of a lack of capital or vision, but because their policies no longer make rebuilding viable. Some commercial clients are resorting to high-deductible plans or going uninsured altogether, which opens the door to even greater financial exposure in the next storm cycle.
A View From The Ground
We’ve had multiple clients in Miami-Dade and along the Gulf Coast whose insurance costs have doubled or tripled in a single year. That kind of instability changes how investors calculate risk—and for many, it’s no longer worth it.
I’ve also seen properties sit idle for months, not because repairs couldn’t start, but because insurance negotiations stalled progress. And I’m hearing a growing sense of uncertainty from real estate professionals who, for the first time in years, are factoring in “insurance stability” as part of location analysis.
Building Stronger Systems
I think Florida needs structural reform that goes beyond surface-level policy changes. While litigation has played a role in the current crisis, it’s only one piece of a deeper systemic problem.
A share of the responsibility lies with the insurance industry itself—from slow claims handling and limited communication to outdated underwriting models that fail to reflect current realities. A lack of transparency and responsiveness has not only undermined consumer confidence but has also made it harder for businesses and investors to plan responsibly.
It’s time for insurers to modernize. This could mean embracing technology to assess risk more accurately, using real-time data for faster claims approvals and improving the customer experience across the board. Parametric insurance, catastrophe bonds, predictive analytics, satellite imagery and AI-powered inspections are no longer futuristic ideas—they are necessary tools for an industry operating in one of the most disaster-prone states in the country.
Reinsurance solutions can also be explored at both the state and federal levels, particularly to provide a backstop for catastrophic events that are becoming more frequent and intense.
For other business leaders in restoration and related industries I’d suggest a few practical steps. One is to focus on educating clients about proactive risk-reduction measures like regular maintenance, which can help make properties more insurable and lower premiums.
It also helps to partner with local and regional industry groups to share information and highlight trends so we can come up with practical solutions together. Finally, I recommend staying engaged with lawmakers and insurance carriers so we can make sure commercial property owners’ needs are considered as new policies and programs are developed.
In my view, builders, insurers and local governments must collaborate with urgency. Without meaningful reform and accountability from all sides, Florida risks losing the very momentum that has driven its growth for decades.
This is about the future of Florida. Insurance is often at the heart of whether communities grow or stall. If we want to keep building in this state, I think we need to build a better, fairer and more forward-thinking system alongside it.
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