Insurance and Assessments: The Real Underwriting Adjustment

Florida's insurance market has repriced in a way that reshapes Miami-Dade real estate underwriting more than any other single input over the last five years. Historical premiums are no longer a useful anchor.

Insurance carry costs on older small multifamily have risen substantially since 2020 in LIBA Capital's underwriting experience, with older coastal and wind-exposed product generally most affected. Condo assessments driven by SB-4D structural reserves add a second, discrete carry-cost step for older buildings.

In underwriting, we bind to current-year insurance bids from carriers we work with regularly, not to prior owner premiums. We also model a special-assessment scenario for buildings older than 30 years, regardless of whether one has been noticed.

The practical output: some assets that pencil on a spreadsheet stop penciling when the actual quote lands. That gap is where disciplined buyers create room.