1. Underestimating Homeowners, Windstorm and Flood Insurance
One of the most common mistakes is calculating affordability using only the mortgage payment, property taxes, and an estimated insurance premium.
On the Space Coast, insurance costs can vary significantly based on the property's age, roof condition, construction type, hurricane protection, location, and flood exposure.
Homeowners insurance may include windstorm coverage, or separate arrangements may be needed. Flood insurance is generally separate and may be required by your lender depending on the property's flood zone and loan requirements.
The Trap: Falling in love with a home, making an offer, and discovering during the financing process that insurance costs push the monthly payment beyond your comfort level.
An older roof, limited wind mitigation features, or certain property conditions may also affect insurance eligibility.
Resources & Verification
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Request actual insurance quotes early, preferably before making an offer or during the contract's inspection period.
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Review the property's FEMA flood-zone designation.
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Ask about available four-point inspections, wind mitigation reports, roof documentation, and elevation certificates.
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Have your lender calculate the payment using realistic insurance premiums and property taxes based on your anticipated ownership.
Useful resources: FEMA Flood Map Service Center , FloodSmart , and Florida Office of Insurance Regulation .