What Newcomers Need to Know About Florida Homeowners Insurance in 2025

Advice

Nov 21

Florida is one of the most desirable places to live, but it is also one of the most complex states when it comes to homeowners insurance. New residents are often surprised by the differences in coverage, the presence of multiple specialty policies, and the cost of insuring coastal properties. If you are planning a move in 2025, understanding the landscape will help you budget confidently and avoid surprises during your home search.

Below are the key insights every newcomer should know.

Why Florida Insurance Works Differently

Insurance operates differently here because of Florida’s unique mix of wind exposure, tropical storms, flooding, and rising replacement costs. Companies face greater risk, so they must price policies accordingly. Many national carriers choose not to write policies in Florida, which limits options and increases reliance on regional carriers. As a result, working with a knowledgeable insurance agent becomes essential.

What a Standard Homeowners Policy Actually Covers

A typical Florida homeowners policy provides protection for:

The structure of the home
Personal belongings
Liability coverage
Loss of use if your home becomes uninhabitable
Additional structures such as fences or detached garages

However, two major risks are not included and must be purchased separately:

Flood insurance
Windstorm insurance in certain coastal areas, depending on the carrier

Because each carrier’s coverage terms can vary, new residents should review quotes carefully to understand limits, deductibles, and exclusions.

Consider Flood Insurance

Even if your lender does not require it, flood insurance is one of the most important protections in Florida. Storm surge, heavy rainfall, and tidal flooding can affect areas far outside traditional flood zones. Buyers can choose:

NFIP policies through FEMA
Private flood insurance, which often offers higher coverage limits and competitive pricing

It is wise to obtain flood quotes early in the home-buying process to avoid surprises. If you are curious about a prospective property’s flood risk, you can check FEMA’s website here.

Windstorm Coverage Depends on the Carrier and the Property

Some insurance companies include wind coverage in a standard policy, while others exclude it for certain zip codes. When windstorm is excluded, buyers must obtain a separate wind policy, often through Citizens Property Insurance Corporation. These policies specifically cover hurricane and tropical storm damage. Wind mitigation inspections can significantly reduce premiums, especially for homes with newer roofs, impact windows, or updated building standards.

Citizens Insurance: A Safety Net, Not a First Choice

Citizens is Florida’s insurer of last resort, designed for homeowners who cannot obtain coverage elsewhere. It has grown in size over the past few years, but it is still meant to be temporary. Policies come with strict guidelines, including:

A requirement to carry flood insurance in some cases
Limited coverage for certain property types
Mandatory replacement if a private insurer offers comparable coverage

Newcomers should think of Citizens as a fallback rather than a long-term solution.

Single Family vs. Condominium Insurance: What Buyers Need to Know

One of the most common areas of confusion for newcomers is the difference between insurance for single family homes and condominiums. The structure you choose will directly impact your insurance costs and the type of policy you need.

Single family homes use a standard HO-3 policy, which covers the entire structure. This includes the roof, exterior walls, windows, attached garages, and all interior finishes. Because the homeowner is responsible for the entire building, premiums are typically higher, especially in coastal areas.

Condominiums work differently. The condo association carries a master insurance policy, which usually provides coverage for:

The exterior of the building
The roof
Elevators, hallways, lobbies, pools, and common areas
Structural components defined by the association’s documents

Many associations operate on a "drywall-out" or "studs-out" basis, meaning the master policy covers everything up to the interior drywall.

The individual owner then carries an HO-6 policy, which fills in the gaps. An HO-6 usually covers:

Flooring, cabinetry, countertops, fixtures, and interior walls
Personal belongings
Liability coverage
Loss of use
Any upgrades or improvements

Because risk is shared between the unit owner and the association, condo insurance is often significantly more affordable than single family home insurance. Reviewing the association’s master policy is essential, since coverage varies widely from building to building.

How Insurance Is Affecting the 2025 Real Estate Market

Insurance is playing a larger role in buyer decision making than ever before. In some coastal areas, insurance costs can vary by thousands of dollars a year between properties that seem similar. Buyers are paying close attention to: