Flood insurance is one of the most significant additional costs for Florida Keys homeowners. Most Keys properties are in FEMA-designated flood zones, and lenders require flood insurance as a condition of the mortgage.
When Is It Required?
Flood insurance is generally required when a mortgaged property is located in a designated Special Flood Hazard Area. Even when it is not required by the lender, many Florida Keys homeowners still choose to carry flood coverage.
How It Is Priced
Premiums depend on the property elevation, flood zone designation, distance to water, building characteristics, and claims history. The National Flood Insurance Program (NFIP) and private insurers both offer coverage.
Cost Range
Annual premiums in the Keys can range from $800 for elevated properties in moderate-risk zones to $5,000+ for older properties in high-risk zones. The average is roughly $2,000-$4,000 annually.
Impact on Monthly Payment
Flood insurance adds $67-$417+ per month to your housing payment. This is in addition to homeowner insurance and property taxes, so budget for all three.