Miami Insurance Rates Are Twice The National Average

Insurance costs in Miami have soared to twice the national average, making it one of the costliest metros in the country.
May 24, 2024
Miami apartment insurance rates
  • The median insurance cost per unit in Miami soars above $1,000, placing it among the top 3 priciest metros to insure.
  • The resolution of the “25% rule” has alleviated the financial burden on insurers by allowing partial instead of full roof replacements.
  • Despite sky-high costs, strong market fundamentals like job and rent growth have sustained local demand for multifamily rentals.
Key Takeaways

In Miami, average insurance premiums have entered the stratosphere at nearly double the national average.

By The Numbers

In 2022, the average cost of insurance per unit nationwide was around $525. Meanwhile, data from August 2023 reveals that the median insurance cost per unit in Miami is over $1,000, making it the third most expensive metro area in the country, on par with NYC. 

Only San Francisco ($1,087 per unit) and New Orleans ($1,020 per unit) have higher insurance premiums.

Why So High, Though?

Inflation isn’t the only reason for the sudden run-up in insurance costs, especially in Florida. The “25% rule” of mid-2022, which previously required full roof replacements if 25% or more units in a building required repairs, didn’t help. 

With recent regulatory changes, only the damaged section needs replacing if it meets building codes, potentially reducing the burden on insurers going forward—although current premiums don’t really reflect that

Investment Outlook

Miami’s investment appeal lies in various market fundamentals such as lifestyle benefits, warm weather, job growth, net migration, and local amenities. These factors have all sustained multifamily demand, with positive rent growth outpacing the national average, according to Freddie Mac. 

And despite lower multifamily sales volumes, industry experts anticipate a resurgence in activity post-rate stabilization. With rental demand strong and housing prices high, multifamily demand should remain high.

I’m an award-winning copywriter and digital marketing consultant who co-founded Tailored Ink. I help business owners and marketers craft the right messaging and create content at scale to grow their brands, generate leads, convert them into customers—and even get acquired by their competitors. As a member of Young Entrepreneur’s Council (YEC) and a columnist for sites like Forbes, Entrepreneur, and Business Insider, I also help mentor current and aspiring entrepreneurs and marketing professionals.
CRE Daily is a digital media company covering the business of commercial real estate. Our mission is to empower professionals with the knowledge they need to make smarter decisions and do more business.
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