Florida property insurance premiums have retreated by roughly 20% year-over-year following a peak in 2023, Truist Securities reported on Thursday. The firm said the reduction in premium costs may provide partial relief for companies with concentrated Florida exposure, where weather-related revenue impacts have been a recent concern.
Truist cited Florida surplus lines data showing premiums climbed to about $40,000 to $45,000 per policy at their 2023 peak before easing through 2024 and into 2025. The firm noted sharp quarterly moves in 2025, with premiums down 46% in the third quarter and 39% in the fourth quarter.
Industry data highlighted by Truist show that the declines are concentrated in certain layers of coverage and specific portfolios. Aon reported that select portfolios have seen cuts in the 25% to 40% range, particularly in catastrophe-exposed layers. Florida Risk Partners documented reductions of 8% to 25% in commercial property pricing, and about 47% lower surplus lines windstorm premiums.
On the state side, Citizens Insurance - Florida’s insurer of last resort - approved average premium reductions of about 8.7% statewide. Reductions were larger in parts of South Florida, with roughly 14% decreases in Miami-Dade and Broward counties and about 12% in Palm Beach County.
Truist’s insurance analyst Mark Hughes said pricing has moved back toward long-term averages, adding that most of the repricing appears to have already occurred. The implication, in Truist’s view, is that the most acute phase of market repricing may be behind insurers and insureds.
The change in insurance costs is material for publicly traded manufactured-home community operators with sizable Florida footprints. Truist highlighted Equity LifeStyle Properties (ELS), which derives roughly 46% of revenue from Florida, and Sun Communities (SUI), which gets about 27% of revenue from the state.
Using an assumption of a 20% drop in Florida insurance costs combined with a 9% decline elsewhere in the U.S., Truist estimates a blended insurance cost decrease of roughly 14% for Equity LifeStyle Properties and about 12% for Sun Communities. For context, Equity LifeStyle recorded nearly $45 million of insurance expense in 2025, representing approximately 41% of its insurance, administrative and other expense line. Sun Communities reported roughly $26 million of insurance expense within its North America portfolio.
Reflecting its view of the sector and individual company fundamentals, Truist maintains a Hold rating on Equity LifeStyle Properties and a Buy rating on Sun Communities.
Key takeaways
- Florida property insurance premiums fell about 20% year-over-year after peaking in 2023, with steep quarterly declines in 2025.
- Reductions are uneven by coverage layer and geography, with notable cuts in catastrophe-exposed layers and state-level premium approvals varying by county.
- The change in insurance costs materially affects REITs with concentrated Florida exposure, including ELS and SUI.
Analyst view
Truist’s Mark Hughes indicated that pricing has largely returned near long-term averages and that much of the market repricing looks to have occurred.
Implications
Lower insurance costs could help blunt weather-related revenue weakness for companies with heavy Florida exposure, though the magnitude of relief will vary by company and coverage composition.