Florida Insurance and Property Taxes: Protecting NOI

The Insurance Market Is Finally Softening

Commercial property insurance costs have grown about 9.7% a year nationally since 2017, as estimated by Moody’s Analytics. Underwriters historically assumed 2% to 3%.¹ In Florida, hurricane exposure and a tight reinsurance market pushed costs even higher, and for many owners insurance became one of the fastest-growing lines in an operating budget.

That trend has turned. U.S. commercial property rates fell 13% in Q2 2026, the eighth quarter in a row of declines.² Florida is moving the same way. The Florida Surplus Lines Association reported commercial windstorm and hail rates down 47%, and 17 new insurers have entered the state since the recent reforms.³

The caveat: reinsurance pricing has come down from its 2023 peak but is still well above historical lows.⁴ One active storm season could change the conversation quickly. The relief is real, but it isn’t automatic. Owners who simply renew without shopping the policy risk leaving savings on the table.

Property Taxes Are Entering a New Chapter

Florida’s non-homestead assessment cap currently limits how much a commercial property’s assessed value can rise each year to 10%. The cap resets when a property sells, and the buyer’s assessment typically moves to the purchase price. That can mean a big jump in the first-year tax bill.⁵

Amendment 3, on the November 2026 ballot, would change that framework. If 60% of voters approve it, it would lower the non-homestead cap from 10% to 5% starting January 1, 2027, and expand homestead exemptions. Estimated statewide revenue reductions start near $5 billion in FY 2027-28 and rise to about $11.9 billion a year on a recurring basis.⁶

For commercial owners, a lower cap would slow assessment growth. But local governments facing revenue gaps may turn to millage rates, fees, or other sources to fill them, so the net effect on any one property isn’t clear yet.