Florida Keys Insurance Costs (Largo, Homestead: real estate market, rental, condo)

jenjmurray · 08-21-2017, 12:16 PM

Hello everyone! My husband and I are moving to the FLA Keys in 2023. We will be "young" retirees. We will both get new jobs, my husband retiring from law enforcement. I have been watching the real estate market for quite some time now and I am starting to get a handle on what you can get for your dollar. However, I am looking for some direction on home, wind & flood insurance. We have friends that have a home in Marathon on a canal and they pay about 12K a year. We are looking for something more inland, hopefully in an X or AE flood zone, in the 450K or less range in Key Largo, Tavernier, Islamorada at the far south end. If anyone can share their insurance costs I would be most grateful.

Also, my husband and I are big walkers and bike riders. Our ideal neighborhood would be somewhere we can ride or walk to dinner and is neighbor friendly. We will only be 50 & 51 when we move so I am not looking for a retirement village. Also, do builders own lots? We would love to custom build, but I do not want to risk buying a lot that I may never be able to build one. Thanks for the help!!

City Guy997S · 08-21-2017, 12:25 PM

6 years from now the FL keys could be wiped off the map.......all it takes is a Cat 4/5 storm.

I would rent a nice condo and feel out the "living in the keys" experience without putting your money into a home. I personally dislike the keys, the riff raff, the t shirt shops/the trailer parks/ the traffic. I can handle a weekend down there about every 5 years.....just long enough for me to remember why I don't like it that much!

jenjmurray · 08-21-2017, 12:42 PM

I forgot to mention that we are open to buying now and renting it until we are ready to make it our forever home!!

Fredesch · 08-21-2017, 04:24 PM

I would avoid any flood zone other than X. If you finance a house and are not in zone X flood insurance will be required and could be more than your mortgage.

Florida has favorable laws for residents that own a home.

Non-residents cannot homestead. Homesteading reduces the property taxes and limits the growth on assessed values. Non-resident landlords are required to use a property management company. Different neighborhoods have different zoning. In my neighborhood's zoning, it is not legal to lease for less than 6 months. A mile down the beach they may be allowed to rent by the day.

I believe any rental for less than 6 months+1 day must pay the state/ local government a daily room tax just like a motel does. In our county zoning enforcement is complaint driven and if a neghbor complains about a non-resident owner renting illegally such as renting week by week they will hound the owner for violating code and not paying room tax until they sell.

You might look into a condo where it is legal to rent short term and they already have a property management company.

jenjmurray · 08-22-2017, 08:09 AM

Thanks for the info Fredesch - it was very helpful!!

aridon · 08-22-2017, 05:22 PM

Down there you're probably looking at Citizens or a Foreign insurer like lloyds, Lexington or USF&G etc.

Expect it to be expensive, likely the most costly insurance in the entire state. Anything built 2002 and newer will automatically get the updated building code credits. I'd try to avoid anything frame or in a mandatory flood zone unless it was elevated significantly. Flood costs are based on the level of the first floor living area so an elevated dwelling would be substantially cheaper than one on a poured slab.

jenjmurray · 08-23-2017, 07:26 AM

Thanks Aridon for the helpful info. We are looking in X Zone only because we do not want an elevated house. But the cost of the premiums for windstorm and flood will be the deciding factor whether or not we move to the keys, so I am still looking for someone out there who lives in an X Zone to share their premiums with me. THANKS!!!

aridon · 08-23-2017, 08:03 PM

Quote:

Originally Posted by jenjmurray

Thanks Aridon for the helpful info. We are looking in X Zone only because we do not want an elevated house. But the cost of the premiums for windstorm and flood will be the deciding factor whether or not we move to the keys, so I am still looking for someone out there who lives in an X Zone to share their premiums with me. THANKS!!!

X zone is standard premium for any house, the cost is based on amount of coverage. IIRC around $300-500 for the year depending on how much coverage you take. Homes down there are expensive so you'll probably be capping at 250k and your contents I wouldn't bother insuring for flood as it is all ACV anyway.

Restrain · 08-24-2017, 06:44 AM

If you go to the FEMA website, you can look at all the flood maps. I just took a look at Marathon, entire key is in a flood zone, and this is probable the full length of the keys. You are not going to avoid a flood zone.

jenjmurray · 08-25-2017, 07:09 AM

Thanks everyone for the helpful information. I had been using the FEMA website to locate flood zones and RESTRAIN there are quite a few areas in the keys that are not in flood zones. So if there are others reading this thread that have the same questions I did, don't fear, the keys are still attainable. They are not under water, nor do I believe they will be under water in my lifetime. I did receive the premium information I was looking for from one of our gracious members on here so the next step now is becoming a homeowner in paradise!!