Why This Florida Apartment Building Was Overinsured and How 35% In Savings Was Achieved
Commercial property owners have felt the pressure of rising insurance premiums, especially in Florida. Each renewal brings higher costs, tighter underwriting, and fewer carrier options.
When a Florida-based apartment building owner reached out to Dependable Partners, their concern was straightforward:
“Our property insurance keeps increasing, and no one can explain why.”
What we uncovered wasn’t just a market issue. It was a data and structure issue, one that had gone unaddressed for years.
The Challenge: Rising Premiums With No Clear Explanation
The apartment owner had renewed their commercial property insurance multiple times with steady increases, despite no major claims or material changes to the property.
Like many property owners, they were told increases were unavoidable due to market conditions. But without a detailed review, it was impossible to know whether the premium truly reflected the building’s risk.
What We Found: Inaccurate Valuations and Misaligned Coverage
A detailed review of the commercial property policy revealed several issues that were quietly driving premium:
Key Issues Identified
- Building replacement values that exceeded realistic reconstruction costs
- Outdated assumptions about building features and materials
- Coverage extensions included by default but no longer necessary
- Deductible structures that didn’t align with the owner’s risk tolerance
None of these issues alone seemed extreme, but together, they created significant inefficiency in the insurance program.
Our Approach: Re-Evaluate, Restructure, and Re-Market
Rather than accepting the renewal, we approached the account strategically.
What We Did
- Conducted a detailed replacement cost review to ensure accurate building valuation
- Verified construction type, occupancy, and protective features
- Reviewed optional coverages and endorsements for relevance
- Adjusted deductibles to better match the owner’s risk profile
- Re-marketed the account to multiple carriers using updated, verified data
- Negotiated terms based on corrected exposures and improved underwriting clarity
This approach ensured the property was insured accurately, not excessively.
The Result: Over 35% in Savings With Improved Alignment
After restructuring and re-marketing the program, the results were immediate:
Outcome Summary
- Base property premium reduced significantly
- Coverage remained intact and better aligned to actual risk
- Deductible structure improved overall premium efficiency
- Policy language clarified to reduce claim ambiguity
In total, the apartment owner reduced their commercial property insurance costs by over 35%, without reducing meaningful coverage.
Why This Matters for Commercial Property Owners
Commercial property insurance is highly sensitive to data accuracy. Small errors in valuation, assumptions, or endorsements can compound over time, especially in challenging insurance markets like Florida.
When renewals are processed without reassessing fundamentals, property owners often end up paying for risk they don’t actually have.
The Takeaway: Accuracy Drives Better Outcomes
This case study reinforces a critical lesson for property owners:
The market matters, but accuracy matters more.
When property values, coverage options, and deductibles are aligned with real-world conditions, insurers can price risk more fairly.
A Simple Question for Property Owners Facing Renewal Increases
If your commercial property insurance has increased year after year, ask yourself:
Has anyone recently reviewed whether this policy still reflects my building accurately?
A proactive insurance review can help identify inefficiencies, correct outdated assumptions, and ensure your property is insured appropriately, not excessively.
If you’d like a second opinion on your commercial property insurance renewal, our team is happy to provide a no-obligation review.
