Homeowners insurance is an important part of buying a Florida home, and it is something worth investigating early in the purchase process. Two homes with similar prices can have very different insurance costs, and the amount the current owner pays may have little relationship to what a new owner will pay.

Why the Seller's Current Premium May Not Be Your Premium

Florida's property-insurance market can change quickly. Insurance companies change rates, underwriting standards and the areas or types of properties they are willing to insure. A policy written several years ago may therefore look very different from a policy being written for a new buyer today.

Your premium may be affected by factors such as:

• The home's location
• Age and type of construction
• Age, condition and type of roof
• The amount of coverage you purchase
• Wind-mitigation features
• Prior claims
• The insurer's current underwriting requirements
• Availability and pricing in the insurance market when you purchase the home

That means the seller could be paying substantially more or substantially less than a new owner will pay. The only meaningful way to estimate your cost is to obtain a current quote in your own name for the property you are considering.

Location Can Have a Major Impact

Where a home is located can significantly affect homeowners-insurance costs. Along Florida's Gulf Coast, wind exposure is particularly important.

Parts of Sarasota and Manatee Counties are within areas where Florida's building standards recognize elevated wind and wind-borne-debris exposure. This is especially relevant in the western portions of the counties and closer to the Gulf, although the proper determination should always be made for the specific property rather than assumed from a general location.

A home in a higher wind-exposure area is not necessarily difficult or prohibitively expensive to insure. It does mean that the home's construction, roof and protection of windows and doors can become especially important.

When Is Homeowners Insurance Required?

Florida generally does not require someone to carry homeowners insurance simply because they own a home.

If you finance the purchase, however, your mortgage lender will normally require adequate homeowners insurance because the property serves as collateral for the loan.

A cash buyer generally has the option of purchasing without homeowners insurance, although doing so means personally assuming the financial risk of losses that otherwise might have been insured.

What Is Wind Mitigation?

Wind mitigation refers to construction features that help a home resist damage from hurricanes and other high-wind events. Florida insurers provide premium credits or discounts for qualifying mitigation features.

Important wind-mitigation features can include:

• Roof covering and how it was installed
• Roof deck attachment
• Roof-to-wall connections
• Roof shape
• Secondary water resistance or similar roof protection
• Impact-resistant windows and doors
• Approved shutters or other opening protection
• Protection of garage doors and other exterior openings

What Is a Wind-Mitigation Inspection?

A wind-mitigation inspection is different from a general home inspection.

A qualified inspector examines and documents the home's wind-resistant construction features and completes Florida's Uniform Mitigation Verification Inspection Form. The report generally includes photographs and supporting documentation of the qualifying features.

The completed report is submitted to the insurance company, which determines the premium credits or discounts for which the property qualifies.

Florida's current Uniform Mitigation Verification Inspection Form is OIR-B1-1802 (Rev. 04/26). A properly completed wind-mitigation inspection form is generally valid for up to five years as long as no material changes have been made to the structure and no inaccuracies are found.

Why the Report Can Be Valuable to a Buyer

A wind-mitigation report can be helpful for two different reasons:

• It gives you additional information about how the home was constructed or improved to withstand high winds.
• It may qualify the property for insurance discounts that reduce the windstorm portion of the premium.

It is therefore useful not only as an insurance document but also as another source of information about the property you are considering.

A Good Insurance Strategy During the Purchase

Do not wait until a few days before closing to investigate insurance. During your inspection or due-diligence period:

• Contact an insurance agent early.
• Obtain a quote for the specific property.
• Ask whether a four-point inspection will be required.
• Obtain or review an existing wind-mitigation report.
• Ask how the roof affects eligibility and premium.
• Ask what discounts are being applied for opening protection and other mitigation features.
• Confirm that the proposed coverage satisfies your lender's requirements.

Important: This guide provides general information and is not insurance, legal or financial advice. Insurance requirements, underwriting standards, premiums and available coverage can change. Buyers should obtain property-specific information directly from a licensed insurance professional and their lender.

Buyer resource from By the Numbers: Florida Sun Coast Real Estate Insights.