Insurance & HOA Basics for Southeast Florida Buyers: Flood, Wind & What to Ask

If you’ve ever fallen in love with a kitchen and then met the monthly… welcome to Southeast Florida. The good news? Once you understand wind vs. flood insurance and how HOAs/condos work, the math gets simple. This guide gives you the plain-English playbook used by buyers in Palm Beach, Martin & St. Lucie so you can compare homes the right way—apples to apples.

Numbers, rules, and coverage change by property and over time. I’ll build you a live, side-by-side “all-in” monthly for any shortlist—mortgage, taxes, wind, flood, HOA/condo, and utilities—so decisions are crystal clear.

1) Wind vs. Flood: Two Different Policies

Wind/Homeowners (“HO”):

Covers the structure and belongings against named perils, including wind.
Price is influenced by roof age/design, impact windows/doors, roof-to-wall attachments, and other wind-mitigation features (credits can help).
Newer CBS (concrete block) + impact often quotes better.

Flood (separate policy):

Lender may require based on FEMA flood zone; many owners carry it even outside high-risk zones for peace of mind.
Elevation and distance to water matter. Quote early for each property—rates can differ street to street.

Pro move: Price both policies during due diligence so your monthly is real, not hopeful.

2) Deductibles & Discounts (Where Premiums Move)

Hurricane/wind deductibles are often a % of dwelling limit (e.g., 2%). Understand your out-of-pocket in a storm claim.
Wind-mit report (on many homes) documents roof, nails, clips, underlayment, etc.—credits can reduce premiums.
Impact protection (windows/doors/garage) typically helps on pricing and comfort.
Roof age is a big lever; recent architectural shingle/metal roofs usually price better.

3) HOAs vs. Condos vs. No-HOA (Who Covers What?)

Single-Family HOA:

You insure your home; the HOA covers common areas (gate, landscaping, amenities).
Fees may include cable/internet, lawn care, and reserves.

Condo/Co-op:

Building carries a master policy (often includes wind/flood for structure); you carry HO-6 (walls-in) for interiors, personal property, loss assessment, and liability.
Review deductibles and what the master covers (windows? balconies?).
Expect move-in rules, elevator deposits, and renovation guidelines (sound underlayment, hours).

No-HOA Streets:

Maximum freedom (boats/RVs often easier), but you shoulder all exterior and neighborhood standards vary.
Insurance is purely your policy; no association fee—but budget for your own lawn, fence, exterior paint, etc.

4) Budgets, Reserves & Special Assessments (The Building’s Health)

Ask for the latest budget, reserve schedule, and any engineering/inspection reports (especially for older condos).
Healthy reserves lower the risk of special assessments for roofs, elevators, concrete, or seawalls.
For townhomes/condos, confirm what the association insures vs. owner—it affects your HO-6 and peace of mind.

Red-flag radar: Repeated special assessments, under-funded reserves, or long-running structural projects with shifting timelines.

5) Approval Timelines & Rules You’ll Actually Care About

Application/approval: Some HOAs/condos require background checks, interviews, or approval windows (1–30+ days). Build this into your contract timeline.
Leasing rules: Minimum lease terms (30/90/180 days?), first-year ownership restrictions?
Pets: Size/breed limits, count, fees.
Parking/EV: Assigned vs deeded spaces; guest rules; EV charging current and planned capacity.
Exterior updates (single-family HOAs): Fences, paint colors, pools, enclosures—all may require approval.

6) The “True All-In” Monthly (How to Compare Homes)

Create a one-line total for each property:
Mortgage + Property Taxes + Wind (homeowners) + Flood (if required/desired) + HOA/Condo Fees + CDD (if any) + Utilities/Internet.

CDD (Community Development District) shows up on the tax bill in some master-planned communities (common in Port St. Lucie/Tradition).
This formula lets you compare Jupiter vs. Stuart vs. PSL with no surprises.

7) Waterfront & Coastal Extras (Jupiter/Tequesta/Stuart)

Seawall/dock: Who maintains, how old, and is it insured?
Bridges & tides: Your boat’s air draft/draft vs. routes; currents at inlets.
Flood risk can shift within a neighborhood—quote by address.

8) New Construction vs. Resale: Insurance & Fees

New builds: Often have impact glass, new roofs, and strong wind-mit—insurance may price better; confirm HOA/CDD and what’s not included (screens, gutters, fans).
Resale: Larger lots/closer-in locations; check roof age, openings, and budget upgrades that impact insurance.

9) 30/60/90-Day Buyer Plan (Insurance/HOA Edition)

Days 1–30: Get pre-approved; request two or three area shortlists (e.g., Jupiter vs. Stuart vs. PSL) with all-in monthly estimates.
Days 31–60: Tour reps from HOA, condo, and no-HOA options; pull sample wind/flood quotes and association docs (rules, budgets, reserves).
Days 61–90: Choose finalists; structure offer terms around approval windows and insurance deadlines; complete inspections (roof, impact, drainage) and confirm policy bindability.

FAQs (Fast & Practical)

Is flood insurance always required near the water?
It’s zone and lender dependent. Many owners carry flood coverage even outside high-risk zones. Quote it early for apples-to-apples.

Why are two houses with the same price quoted differently for insurance?
Roof age/design, impact protection, elevation, and wind-mit credits can swing premiums—sometimes dramatically.

Are condo fees “bad”?
They can be good value if they cover reserves, insurance, amenities, and utilities. Compare what’s included and the building’s health.

How long do HOA/condo approvals take?
Anywhere from same-week to 30+ days. Build it into your contract timelines and don’t schedule movers until approved.

What’s a CDD again?
A Community Development District finances infrastructure in some master-planned communities; you repay via your property tax bill. It’s not an HOA fee—but it’s part of your all-in.