Homeowners insurance in the Florida Keys is different from most other parts of the country. Between windstorm coverage requirements, higher property values, and the unique risks of coastal living, insurance costs can be a significant part of your monthly housing payment.
What Lenders Require
Mortgage lenders require hazard insurance (homeowners insurance) that covers the replacement cost of the structure. The policy must be sufficient to protect the lender's investment in the property. Windstorm coverage is typically included or available as a separate policy.
Windstorm Insurance
Windstorm or hurricane coverage is essential for Florida Keys properties. This coverage may be included in a standard policy or obtained through the Florida Citizens Property Insurance Corporation or a private insurer. Windstorm deductibles are typically a percentage of the dwelling coverage rather than a flat dollar amount.
Flood Insurance
Flood insurance is separate from homeowners insurance. It 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.
Total Insurance Costs
Combined homeowners, windstorm, and flood insurance in the Florida Keys can range from $3,000 to $10,000 or more annually, depending on the property value, location, elevation, construction type, and coverage levels. These costs should be factored into your budget before making an offer.
Condo Association Insurance
For condo owners, the association typically carries a master policy covering the building structure and common areas. Individual unit owners are responsible for a contents policy and may need additional coverage for improvements or upgrades. Review the association's master policy, deductibles, and any special assessments related to insurance.