Buying Property in Florida? Don't Skip This Insurance Guide
Florida’s real estate market remains attractive to retirees, second‑home buyers, and investors — but homeowners insurance has become one of the most misunderstood (and financially significant) facets of purchasing property in our state.
If you’re considering buying in Florida, especially in coastal or condo markets, understanding the homeowners insurance changes — and how they impact affordability and resale — is just as important as the location or purchase price.
Why Florida Homeowners Insurance Has Changed So Dramatically
Florida’s insurance challenges didn’t happen overnight. Several forces have converged:
1. Increased Catastrophic Losses
Hurricanes like Ian (2022) and Milton (2024), frequent flooding, and severe storms have racked up large claims across the state, particularly in coastal cities like Sarasota.
2. Litigation and Assignment of Benefits (AOB) Abuse
For years, Florida accounted for a disproportionate share of property insurance litigation in the United States.
Legislative reforms enacted beginning in 2022 and 2023 made significant changes to litigation, attorney fees, assignment of benefits, and other insurance-related practices. Those reforms are now contributing to a healthier insurance environment, although the full impact takes time to work through the market.
3. Carrier Insolvencies and Market Exits
Florida experienced a wave of insurer insolvencies and companies leaving the market, reducing the number of available choices for homeowners. But that picture has begun to change.
In May 2026, the Florida Office of Insurance Regulation (OIR) announced three additional property and casualty insurers entering the state, bringing the total number of companies entering the Florida market since the major legislative reforms to 20. OIR also reported that Florida domestic property insurers had improved their combined ratio substantially, from 109% in 2022 to 83% at the end of 2025.
That’s encouraging news for Florida homeowners as more competition can mean more choices, and potentially more competitive pricing.
4. Reinsurance Costs
Florida insurers rely heavily on global reinsurance markets to protect themselves against catastrophic losses. Reinsurance costs increased significantly following major storms and years of losses, and those costs ultimately became part of the premiums paid by Florida homeowners.
The good news is that this pressure has begun to ease as the overall insurance market improves. But insurance costs remain highly dependent on the property, its location, construction, mitigation features, and the coverage selected.
What This Means for Buyers: Insurance Is No Longer a Back‑End Detail
This part hasn’t changed — if anything, it has become even more important.
Insurance can affect whether a property qualifies for certain financing, your monthly housing costs, your ability to qualify for a mortgage, and your future resale market.
For some Florida properties, insurance premiums can rival or even exceed property taxes. And insurance isn't necessarily a simple “Sarasota costs X” calculation. The Florida Office of Insurance Regulation (OIR) notes that premiums can vary significantly based on factors including construction type, dwelling value, mitigation features, and deductibles. Its CHOICES rate comparison tool provides general comparisons, but buyers still need an actual quote for the specific property.
So, if you're buying a coastal or waterfront property, insurance due diligence should happen early — ideally before you become fully committed to the purchase.
To recap, insurance now affects:
Whether a property qualifies for certain types of financing
Monthly affordability and mortgage qualification
Long‑term resale value
Roof Age Matters More Than Ever
Roof age remains one of the first things I tell buyers to investigate.
An older roof can affect insurance availability, premiums, deductibles, and ultimately the cost of owning the property.
But there is an important update here that buyers should know.
Florida law now places limits on an insurer refusing to issue or renew a homeowners policy solely because of roof age. For a roof that is 15 years old or older, the homeowner must be allowed to obtain an inspection by an authorized inspector before an insurer requires replacement solely based on age. Then if the inspection shows at least five years of useful life remaining, the insurer generally cannot refuse coverage solely because of age.
That doesn't mean an older roof is automatically acceptable to every insurer. Condition, remaining useful life, construction, claims history, and other underwriting factors still matter.
To recap, buyers should understand:
Roof material and age
Whether a replacement might be required for coverage
How roof age affects premium pricing
Read more details on §627.7011(5) - click here: Florida Roofing Law
Condos Are Not Immune: HOA Fees on the Rise
Buyers are often surprised to learn that:
Condo associations carry master policies that may see significant increases
Special assessments may be used to cover rising insurance costs
New state reserve requirements can indirectly affect insurance affordability
Flood Insurance: Not Just for Flood Zones
Flooding is excluded from standard homeowners insurance policies. However, even properties outside of high‑risk flood zones may benefit from flood insurance coverage because:
Claims history matters more than map designation
Flooding from storm surge or heavy rain can occur anywhere
Premiums are often lower than expected making it an affordable add-on
Read more here: FEMA: Fast Facts on Floods & Flood Insurance
How Smart Buyers Protect Themselves
Before purchasing a home in Florida, buyers, along with their agents, should include in their due diligence:
Review the prospective home’s roof age, mitigation features, and prior claims
Request insurance quotes before making an offer
Review and understand the condo association insurance and reserves documentation
Consider the buyer’s budget for future premium increases
Working with professionals who understand both real estate and insurance trends is critical in today’s Florida markets.
Final Thoughts
Informed buyers are the most successful buyers! Florida real estate remains a strong lifestyle and investment choice — but insurance is now a central part of the buying equation. Reach out if I can help with any questions or refer experienced insurance professionals from my Southwest Florida network.
Audra Lane, REALTOR®, CIPS, RSPS | Preferred SHORE
© 2026 Audra Lane, LLC | Audra by the Sea
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