Florida’s commercial real estate market is as dynamic as its coastline — full of opportunity, but not without risk. As we move through 2025, commercial property insurance is proving to be one of the most critical — and costly — concerns for business owners and investors, especially in coastal areas like St. Petersburg and across Pinellas County.

With rising premiums, ballooning deductibles, and evolving underwriting standards, the need for a strategic insurance approach is greater than ever. Business owners who don’t adapt risk more than just higher costs — they risk being underinsured, overexposed, and financially vulnerable when the next big storm hits.

This article unpacks the some of the biggest commercial property insurance trends in 2025, the proactive steps property owners should consider now to stay ahead of the storm.

The commercial insurance landscape has shifted dramatically in the past few years. And in 2025, it’s showing no signs of slowing down.

1. Storm Aftermath & Risk Modeling Changes

Florida’s exposure to hurricanes, flooding, and extreme weather continues to drive up insurance rates. Even if a property hasn’t filed a claim, regional weather activity affects how carriers assess risk.

• Hurricane Ian (2022) and Idalia (2023) led to billions in insured losses.
• Some catastrophe models released in 2024 suggest higher potential storm intensity; impacts on pricing vary by carrier and location.
• Many carriers report considering longer-term climate and flood risk in underwriting, though approaches vary.

2. Insurance Carrier Departures and Reduced Capacity

Several national carriers have pulled out of Florida or significantly reduced commercial coverage offerings. This has narrowed the market, causing remaining insurers to:

• Increase premiums to manage their risk portfolio.

• Limit coverage in certain ZIP codes, including parts of St. Petersburg and coastal Pinellas.

• Require more detailed property inspections, even on renewal.

3. Inflation & Construction Costs

Replacement cost values have surged due to:

• Labor shortages 

• Material price inflation 

• Supply chain delays 
  What used to cost $1 million to rebuild might now require $1.4–$1.5 million. If your policy hasn’t been updated, you may be underinsured — even if your building hasn’t changed.

Even as rates increase, so do deductibles — especially for named storm events, wind/hail, and water damage.

Here’s what we’re seeing in 2025: 

• Hurricane deductibles often range from 3% to 10% of the building’s insured value—check your policy for the applicable percentage and trigger.
• Separate deductibles for different perils, creating unexpected gaps in coverage.
• In some programs, percentage deductibles may also apply to certain time-element coverages; availability and terms vary.

For a $2 million building, a 5% hurricane deductible means you’re responsible for the first $100,000 in storm damage — out of pocket.

Many business owners in St. Petersburg and beyond have been caught off guard by this shift, especially when banks or lenders require certain limits that don’t align with policy details.

Quick note: Many commercial properties appear to be underinsured in 2025, often due to higher rebuild costs and outdated values.

Here’s how it happens:

• Policies are based on outdated replacement cost estimates.

• Deductibles have been adjusted without owners realizing the impact.

• Business interruption coverage is based on pre-inflation income levels.

• Coverage doesn’t include code upgrade costs or debris removal after storms.

If you own retail space, office buildings, warehouses, multifamily units, or mixed-use properties in the St. Pete area, now is the time to audit your policy.

The best way to help protect your investment is by getting ahead of the curve. Here’s how.

1. Conduct a Full Insurance Audit

Have your agent review every detail of your commercial policy:

• Insured building value vs. current replacement cost

• Windstorm and named storm deductible types

• Coverage for business interruption, debris removal, code upgrades, etc.

• Any exclusions or endorsements affecting water or flood damage

At Comegys Insurance, we help business owners in Pinellas County and in states where we’re licensed understand not just what their policy says — but how key terms and options may apply during a loss.

 2. Assess Flood Risk — Even Outside FEMA Zones

Flood coverage is not part of standard commercial property insurance. 
With King Tides and storm surge on the rise, many St. Pete businesses face new risks — even if they weren’t considered high-risk before.

Consider:

• Private flood markets for higher limits and faster payouts

• Elevation certificates for better premium rates

• Flood business interruption coverage if you rely on foot traffic

 3. Update Your Property’s Replacement Cost Estimate

Work with a contractor or appraiser to determine the real cost to rebuild.
Don’t rely on 2019 numbers — they could leave you 25%+ short on coverage.

Also check:

• Building material availability

• Labor costs for specialized trades

• Permitting delays

4. Reinforce Your Building and Improve Risk Score

Many insurers now offer discounts or improved underwriting outcomes for:

• Roof reinforcements

• Impact-rated windows and doors

• Storm shutters

• Fire suppression systems

• Backup generators

These upgrades may improve your risk profile and could help with pricing or placement, depending on carrier underwriting.

5. Consider Deductible Insurance (Buyback Policies)

Did you know you can insure your deductible?

For property owners with large hurricane deductibles, a deductible buyback policy can help:

• Reduce out-of-pocket storm costs

• Meet lender requirements

• May increase claim recoveries

Availability, pricing, and terms vary by carrier and jurisdiction.

Founded in St. Petersburg, Florida, Comegys Insurance Agency has been a trusted advisor for commercial property owners in Pinellas County for decades. But our capabilities extend far beyond the Sunshine City.

We place commercial property coverage in the following states, subject to licensing, carrier appetite, and availability:

• Florida (with a focus on the Gulf Coast)

• Georgia, North Carolina, South Carolina

• Texas, Arizona, and select Western states

• And other licensed states across the U.S.

Our approach is built on relationships — not transactions. We help our clients navigate:

• Premium increases 

• Carrier limitations 

• Complex underwriting guidelines 

• Business continuity planning 

Whether you own a strip center in Clearwater, a medical office in Downtown St. Pete, or a portfolio of rental properties across the U.S., we’re here to help you weather whatever 2025 brings.

If you’re a commercial investor or property owner in St. Pete, you’re already navigating a unique blend of market factors:

• Rapid redevelopment in Edge District, Grand Central, and Warehouse Arts District

• Increased construction and rising square footage values

• Pressure from short-term rentals in mixed-use areas

• Tight carrier underwriting for properties near Tampa Bay or the Gulf

Premiums in our area have risen for many accounts—often double-digit year over year—depending on the building’s age, construction, and exposure. Specific outcomes vary. For older buildings or those without recent upgrades, premium hikes can exceed 25%.

May is your window. 

Before the official start of hurricane season in June, commercial property owners should:

• Review their policies with a trusted insurance agent

• Explore cost-saving strategies that don’t increase risk

• Evaluate flood coverage options and business interruption gaps

• Understand every deductible before storm season hits

The market may get tighter as summer approaches. Acting now can put you in a stronger negotiating position, can give you more carrier options, and may help you plan realistic budgets for the rest of the year.

Comegys Insurance Agency is here to help.

We understand the stakes. We know the carriers. And we speak the language of business — helping you navigate insurance with the clarity, insight, and strategic thinking your portfolio deserves.

Let’s help safeguard what you’ve built — and plan for what’s ahead.