St. Petersburg Reduced Insurance Coverage for Tropicana Field Months Before Major Hurricane Damage

In a strategic cost-cutting move ahead of the 2024 hurricane season, St. Petersburg city leaders approved a reduction in insurance coverage for Tropicana Field, a decision that now carries serious implications after Hurricane Milton severely damaged the stadium. The city’s Budget, Finance and Taxation Committee reduced the windstorm and flood coverage limit specifically for Tropicana Field from $100 million to $25 million, a proposal brought by insurance broker Brown & Brown. This choice saved St. Petersburg $275,000 in annual premiums, with the risk manager suggesting that this lower limit would still cover the costs of major damages.

However, the hurricane’s impact proved more destructive than anticipated, tearing off the stadium’s aging Teflon-coated roof, which may now require repairs costing well beyond the policy’s $25 million limit. St. Petersburg faces additional financial challenges, as the city must cover a $22 million deductible before any insurance reimbursement applies. Given Tropicana Field’s unique construction and lack of historical damage data, some industry experts have raised concerns about the adequacy of the reduced coverage. With initial claims underway, the full cost of repairs and the financial impact on St. Petersburg remain uncertain.

Internal records also reveal that while Tropicana Field’s specific coverage was reduced, the city increased its overall general property coverage from $430 million to $441 million for the year. However, the stadium is only one part of this policy, which covers other city assets like the airport and City Hall, leaving Tropicana Field’s complete restoration costs potentially unprotected.