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 biggest commercial property insurance trends in 2025, the proactive steps property owners must take now, and how Comegys Insurance Agency is helping businesses across Florida — and nationwide — 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.

• New models in 2024 now anticipate higher storm intensity, not just frequency.

• Carriers are factoring climate risk and sea-level rise into underwriting decisions.

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 now range from 3% to 10% of the building’s insured value.

• Separate deductibles for different perils, creating unexpected gaps in coverage.

• Some carriers are applying percentage deductibles on business interruption coverage, too.

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 fact: Nearly 1 in 3 commercial properties in Florida are underinsured in 2025. 

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 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 licensed states nationwide understand not just what their policy says — but what it really means when disaster strikes.

 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 not just save your business during a storm — they can make you eligible for better insurance pricing.

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

• Increase claim recoveries

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 write commercial property insurance in:

• 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

Insurance premiums in our area have increased 12–18% year over year, depending on the building’s age, construction type, and risk exposure. 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 will only get tighter as summer approaches. Acting now puts you in a stronger negotiating position, gives you more carrier options, and helps 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 protect what you’ve built — and plan for what’s ahead.