Before You Offer on a Florida Home: Flood Zones, Insurance, HOAs and CDDs

By Firelight Realty Group · 7 min read

In Florida, the price of the home is only part of what you’re signing up for. Flood risk, insurance, HOA rules and CDD assessments can change your monthly payment by hundreds of dollars. Here’s what to check before you make an offer, not after.

1. Flood zone and flood history

Every property has a FEMA flood zone designation. Homes in high-risk zones (zones starting with A or V) with a federally backed mortgage generally require flood insurance. Homes in moderate- or low-risk zones (often shown as X) usually don’t require it, but a large share of flood claims come from outside high-risk zones, so it’s still worth a quote.

Since October 1, 2024, Florida sellers of residential property must give buyers a flood disclosure before the contract is signed. It states that homeowners’ policies don’t cover flood damage, and it asks whether the seller has filed a flood insurance claim or received federal flood assistance, such as FEMA aid, for the property. Read it carefully, and ask for an elevation certificate if the seller has one. It can make a big difference to a flood insurance quote.

2. Homeowners insurance

Get a real insurance quote during your inspection period, not after. Florida premiums depend heavily on the roof’s age and type, the age of the electrical, plumbing and heating systems, wind-mitigation features and distance from the coast. For older homes, insurers often ask for:

• A four-point inspection covering roof, electrical, plumbing and HVAC.
• A wind-mitigation inspection, which can earn real discounts for features like hurricane straps, impact windows and a secondary water barrier.

An older roof can make a home hard or expensive to insure. If a quote comes back high, that’s useful information for negotiating repairs or price.

3. HOA rules and finances

Many Florida neighborhoods have a homeowners association. Before you’re locked in, review:

• Dues and what they cover (landscaping, amenities, gates, cable or internet).
• Rules on rentals, vehicles, fences, pets, exterior colors and short-term rentals.
• Special assessments, current or planned, and how healthy the reserves are.
• Approval requirements, since some communities approve buyers or tenants before closing.

Condos have their own, stricter set of rules for inspections and reserves, so plan extra time to review condo documents.

4. CDD assessments

Many newer Florida communities sit inside a Community Development District (CDD), a special district created under Chapter 190 of the Florida Statutes to fund infrastructure like roads, stormwater ponds, utilities and amenities. CDD assessments show up on your property tax bill as non-ad valorem assessments, and they’re usually escrowed with your taxes.

A CDD assessment usually has two parts:

• Debt service, which repays the bonds that built the infrastructure. It’s typically a fixed amount per lot and often runs 20 to 30 years from when the bonds were issued. It can sometimes be paid off early.
• Operations and maintenance, set each year by the district board to run common areas and amenities.

Two homes at the same price can have very different CDD costs, so compare total monthly cost, not just price.

5. Property taxes after you buy

Don’t judge future taxes by the seller’s bill. If the seller had a homestead exemption, their assessed value may be capped well below market value. After a sale, the home is reassessed. If you’ll live there as your primary home, file for your own homestead exemption, which can lower your taxable value and limit future increases.

Put it all in one number

Before you offer, add it up: mortgage, taxes, homeowners insurance, flood insurance, HOA dues and CDD assessments. That total monthly cost is what you’re really buying. We walk every buyer through it, on resale homes and new construction alike, anywhere in Florida. Questions? Call (407) 357-0357.