Insurance Shock? How Florida Buyers Can Plan Smarter in 2026

If you're buying in Miramar, Pembroke Pines, Hollywood, or Weston, this guide helps you avoid the "insurance surprise" that derails budgets and delays closings.

1) What causes "insurance shock" (and why it's more common in 2026)

Insurance shock happens when:

• A home looks affordable based on the mortgage estimate

• Then insurance quotes come in higher than expected

• The monthly payment jumps by $200–$500+ (that's $2,400–$6,000 per year)

• The buyer realizes the home isn't as affordable as it seemed

Why this is happening more in Florida:

• Carriers have tightened underwriting (roof age, wind protections, and inspection requirements matter more)

• Premiums continue to be volatile, especially for coastal and older properties

• Many buyers don't realize why Florida home insurance is so high and how much it affects affordability until after they're emotionally committed

The good news? Insurance shock is preventable when you plan early.

Bottom line: If insurance isn't part of your offer strategy, it will become part of your problem.

2) The coverage types Florida buyers need to understand

Before you shop for quotes, understand the three main policy types:

HO-3 (single-family homeowners policy)

• Covers the structure, personal property, and liability

• Most common for detached homes

DP-3 (dwelling fire policy)

• Typically for rental properties or non-owner-occupied homes

• May have fewer coverages than an HO-3

HO-6 (condo unit owners policy)

• Covers your unit's interior and personal property

• The condo association's master policy covers the building structure

Key point: If you're buying a condo, you need both the association's master policy information and your own HO-6 quote to estimate your real cost. Many condo buyers are surprised to learn that some Florida condos still aren't mortgage-eligible in 2026 due to insurance and reserve issues.

3) The two inspections that can save (or cost) you money

4-point inspection

What it checks: Roof, electrical, plumbing, HVAC

Why it matters: Many insurers require a 4-point inspection for homes over 30 years old (or with older roofs). If issues are found, you may need repairs before coverage can be bound.

Wind mitigation inspection

What it checks: Roof shape, roof-to-wall attachment, impact windows/shutters, secondary water resistance

Why it matters: A good wind mitigation report can unlock discounts that reduce your premium by hundreds or even thousands per year.

Smart buyer move: Order these inspections early in your contract period so you can negotiate repairs or credits if needed and confirm insurability before your financing deadline.

If you're unsure whether a home will be insurable, this is the point to pause and get guidance.

4) How to budget insurance before you fall in love with a house

Here's the planning timeline that prevents insurance shock:

Before you write an offer:

• Get scenario quotes for the type of home you're targeting (price range, age, roof type, location)

• Ask your lender what insurance estimate was used in your pre-approval so your numbers are realistic

• Compare homes by total monthly payment (mortgage + taxes + insurance + HOA), not just list price

For a breakdown of what the full monthly cost really includes, see the true cost of owning a home in South Florida in 2026.

Once you're under contract:

• Request 3 insurance quotes within the first 2 days

• Provide complete property details (roof age, updates, wind protections)

• Schedule inspections (4-point and wind mitigation) immediately if needed

• Confirm when the policy can be bound and what documents your lender requires

5) The insurance "filters" that help you shop smarter

Treat these as home-selection criteria, not just underwriting boxes:

• Roof age: Homes with roofs older than 15–20 years may face coverage limits or require replacement before closing

• Wind protections: Impact windows, shutters, or hurricane-rated garage doors can significantly lower premiums

• Electrical and plumbing updates: Older systems can trigger higher premiums or coverage restrictions

• Flood zone: Homes in high-risk zones require separate flood insurance, which adds to your monthly cost

• Claims history: Some homes carry baggage from prior claims that can affect your ability to get coverage

When you use these filters before touring, you avoid falling in love with a home that's expensive (or difficult) to insure.

6) What to do if Citizens is your only option

Citizens Property Insurance is Florida's insurer of last resort. If private carriers decline coverage or quote premiums you can't afford, Citizens may be your fallback.

What to know:

• Citizens rates can still be high, but they're often more predictable than the private market

• Your lender will accept a Citizens policy for mortgage approval

• Coverage is solid, but you'll want to review deductibles carefully (especially hurricane deductibles)

• Many Florida buyers start with Citizens and transfer to private carriers later as the market stabilizes

Citizens is not a "failure”; it's a valid coverage option that keeps deals moving when the private market doesn't cooperate. Claims are handled professionally, and lenders accept Citizens policies without issue.

7) Planning checklist: how to avoid insurance shock

Use this before you shop:

• [ ] Understand what policy type you'll need (HO-3, DP-3, or HO-6)

• [ ] Get scenario quotes early (before you write offers)

• [ ] Ask about roof age, wind protections, and inspection requirements

• [ ] Budget by total payment, not just principal and interest

• [ ] Order 4-point and wind mitigation inspections early in the contract period

• [ ] Confirm insurance can be bound before your financing deadline

• [ ] Keep reserves for potential premium increases at renewal

If you're just starting to understand what cash you'll actually need to close in Florida, this guide breaks down all the buckets: how much cash Florida buyers really need in 2026.

8) Frequently asked questions

Is home insurance required to close in Florida?

Yes. Your lender will require proof of homeowners insurance before funding your loan. The policy must be active on or before your closing date.

Can I switch insurance after closing?

Yes. You can shop for better rates at any time. Just notify your lender and escrow company so they can update your account.

Do all homes require a 4-point inspection?

Not all, but most insurers require it for homes over 30 years old or with roofs older than 15–20 years. It's best to ask early.

Final takeaway

In 2026, insurance is not a surprise you discover at closing. It's a planning factor that shapes which homes you can afford and which deals close smoothly. Buyers across South Florida who treat insurance as part of their home-selection strategy avoid the "shock" and shop with confidence.

Planning ahead doesn't mean you'll love the premiums. It means you won't be blindsided by them.

Next steps

If you want help running insurance scenarios before you write an offer, or if you want to understand how insurance fits into your total monthly payment:

• Get pre-approved in minutes: Start your application now

• Explore Florida homebuyer programs: Learn about low-down-payment and first-time buyer options

• Book a strategy call: Schedule a call to review your plan and avoid costly mistakes

EZ Funding Group, Inc. NMLS #349022 | Jaime Charouf NMLS #348964 | Equal Housing Lender