Is Homeowners Insurance Required Before Closing in Florida?
Yes — lenders require proof of homeowners insurance before they will fund your mortgage. In Florida, getting insurance can take longer than buyers expect. Here is when to start shopping and what to expect.
Is Homeowners Insurance Required Before Closing in Florida?
Yes. If you are financing your purchase, your lender will require proof of homeowners insurance before they will fund the loan. You must have a policy bound (in effect) before closing.
Why Lenders Require Insurance
Lenders require homeowners insurance because the property is collateral for the loan. If the property is damaged or destroyed, the lender needs to know it will be repaired or that the loan will be paid off from the insurance proceeds.
When to Start Shopping for Insurance
Start shopping for homeowners insurance as soon as you go under contract — not the week before closing. In Florida, getting insurance can take longer than buyers expect because:
- Florida's insurance market is challenging, with many carriers having left the state or reduced their coverage
- Older properties, properties with aging roofs, and properties in high-risk flood zones can be difficult to insure
- Some carriers require inspections before binding coverage
- The underwriting process can take 1–2 weeks
What Florida Homeowners Insurance Covers
A standard Florida homeowners insurance policy covers:
- Dwelling coverage (damage to the structure)
- Personal property coverage
- Liability coverage
- Additional living expenses if the home is uninhabitable
What it does NOT cover:
- Flood damage (requires a separate flood insurance policy)
- Wind damage in some policies (may require a separate windstorm policy)
Flood Insurance
Most Emerald Coast properties are in or near flood zones and require separate flood insurance. Flood insurance is available through the National Flood Insurance Program (NFIP) or private carriers.
See our post on flood zone designation and how it affects insurance and mortgage costs.
Wind and Hurricane Coverage
Florida homeowners insurance policies typically cover wind damage, but some policies in high-risk coastal areas exclude wind coverage. If wind is excluded, you will need a separate windstorm policy.
See our post on flood, windstorm, and hurricane coverage in Florida.
FAQ
How much does homeowners insurance cost in Florida?
Florida homeowners insurance is significantly more expensive than the national average. Costs vary widely based on location, property age, roof condition, and coverage amount. Get quotes from multiple carriers.
What if I cannot get insurance on the property?
If you cannot obtain insurance at a reasonable cost, you may not be able to close. This is a real risk in Florida, particularly for older properties with aging roofs.
When do I need to provide proof of insurance to my lender?
Your lender will typically require proof of insurance (a declarations page showing the policy is bound) at least a few days before closing.
Buying on the Emerald Coast and need guidance on insurance? I can connect you with insurance agents who specialize in coastal Florida properties.
— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849
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Kinsey Haddock · Coldwell Banker Realty
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Written by
Kinsey Haddock P.A.Kinsey Haddock P.A. is a Broker Associate and REALTOR® with Coldwell Banker Realty, specializing in coastal real estate across the entire Florida Panhandle — from St. George Island and the Forgotten Coast to Panama City Beach, Scenic Highway 30A, and Destin.