Florida Insurance, Property Tax & Closing Costs

Homeowners Insurance in Florida

Policy Types

Florida homeowners insurance policies follow standard ISO forms. The three types most relevant to South Florida buyers and sellers are:

Wind Mitigation Inspections & Discounts

Florida law (Section 627.0629, F.S.) requires insurers to provide premium discounts for homes with wind-resistant construction features. A wind mitigation inspection documents these features using the Uniform Mitigation Verification Inspection Form (OIR-B1-1802). A new version of this form took effect April 1, 2026.FL OIR

Inspections may be performed by licensed general, building, or residential contractors; licensed professional engineers; licensed architects; licensed home inspectors; or licensed building inspectors (Section 627.711(2)(a), F.S.). The completed form is valid for up to 5 years.

Discount categories include roof shape (hip vs. gable), secondary water barrier, roof-to-wall connection type (clips, single wraps, double wraps), and opening protection (shutters, impact glass). Savings typically range from $100 to $600 per year, though some homeowners with multiple qualifying features see reductions of 30–40% on the windstorm portion of their premium.

4-Point Inspections

A 4-point inspection evaluates four major home systems: HVAC, electrical, plumbing, and roof. This is not a statutory requirement — it is an insurer-imposed underwriting requirement, typically for homes 20 years or older. Most Florida insurers require a 4-point inspection before issuing or renewing a policy on older homes. Buyers of older South Florida homes should budget for this inspection during the due diligence period.

Citizens Property Insurance Corporation

Citizens is Florida's state-backed insurer of last resort, created to provide coverage when the private market cannot.citizensfla.com

Flood insurance requirements for Citizens policyholders — phased by dwelling replacement cost (Coverage A), not market value:

Note: Replacement cost (what it would cost to rebuild) is typically lower than market value. Most South Florida homes exceed the $400,000 replacement cost threshold.

• Jan 1, 2024 — Dwellings with replacement cost of $600,000 or more
• Jan 1, 2025 — Dwellings with replacement cost of $500,000 or more
• Jan 1, 2026 — Dwellings with replacement cost of $400,000 or more (Coverage A)
• Jan 1, 2027 — All personal lines, regardless of value (including tenant policies)
• At policy issuance — Properties in FEMA Special Flood Hazard Areas (SFHAs)

Florida Mitigation Programs

Flood Insurance

FEMA Flood Zones in South Florida

Palm Beach County: According to the Palm Beach County government, all residents in the county are in a flood zone to some degree. Properties in Zone AE (high-risk areas) with federally backed mortgages are required to carry flood insurance.discover.pbc.gov

Broward County: FEMA flood maps for Broward County were updated effective July 31, 2024. Buyers should verify the current flood zone designation for any property using the FEMA Flood Map Service Center.msc.fema.gov

NFIP vs. Private Flood Insurance

The National Flood Insurance Program (NFIP), administered by FEMA, provides maximum residential dwelling coverage of $250,000 and contents coverage of $100,000. For South Florida properties valued above these limits, supplemental private flood insurance is available from private carriers and often provides higher limits and broader coverage.

Any property with a federally backed mortgage (Fannie Mae, Freddie Mac, FHA, VA) located in a FEMA Special Flood Hazard Area (Zone A or V) must carry flood insurance at minimum equal to the outstanding loan balance or the NFIP maximum, whichever is less.

Property Tax & Homestead Exemption

Homestead Exemption

The Florida Constitution (Article VII, Section 6) provides a homestead exemption of up to $50,000 on a permanent resident's primary residence. To qualify, the property must be the owner's permanent Florida residence as of January 1 of the tax year, and the application must be filed with the county property appraiser by March 1.FL Dept of Revenue

The Palm Beach County Property Appraiser estimates the homestead exemption saves the average homeowner approximately $750 to $1,000 per year.pbcpao.gov Additional exemptions are available for seniors age 65+, disabled veterans, and surviving spouses.

Save Our Homes (SOH) Cap

The Florida Constitution (Article VII, Section 4) limits annual increases in the assessed value of homesteaded property to the lesser of 3% or the change in the Consumer Price Index (CPI). Over time, this creates a significant gap between assessed value and market value, resulting in substantial tax savings for long-term Florida homeowners.

Portability: Florida homeowners can transfer their SOH benefit to a new Florida homestead within 3 tax years of January 1 of the year they last claimed homestead. This is a major advantage for Florida residents moving within the state.Section 193.155, F.S.

No State Income Tax

Florida does not impose a personal income tax (Florida Constitution, Article VII, Section 5). For buyers relocating from states with income tax, this effectively increases take-home pay and can improve debt-to-income ratios for mortgage qualification.

Closing Costs in South Florida

Documentary Stamp Tax

Florida imposes documentary stamp taxes on real estate transactions, governed by Chapter 201, F.S.FL Dept of Revenue

Title Insurance

Florida is a promulgated-rate state for title insurance — rates are set by the Florida Office of Insurance Regulation and are the same regardless of which title company is used (Section 627.7711, F.S.). In South Florida, the customary practice is for the seller to pay for the owner's title insurance policy and the buyer to pay for the lender's title insurance policy. This can vary by municipality, so confirm during contract negotiation.

Typical South Florida Closing Cost Estimate

For a $500,000 purchase with 20% down ($400,000 mortgage):

These are estimates only. Actual closing costs vary by transaction. A licensed title agent or real estate attorney can provide a detailed estimate for any specific transaction.