How Rising Insurance Costs Are Impacting Florida Home Sales (And What You Can Do About It)

By Ryan McAllister – Coldwell Banker Realty

If you’ve spent any time in Florida real estate recently — as a buyer, seller, or even just a homeowner — you’ve likely felt the sting of rising insurance premiums. And you’re not imagining it: over the past two years, homeowners insurance costs in Florida have increased by more than 40% on average, with some carriers hiking rates by as much as 100% or more in certain coastal zip codes.

In Brevard County, the situation is especially pronounced. With our proximity to the coast, aging housing stock, and increased storm risk, buyers are facing sticker shock — not from the asking price, but from the cost to insure the property. This shift is affecting how homes are priced, how deals are negotiated, and even who qualifies for financing.

So, how exactly are rising insurance rates shaping our local market — and what can buyers and sellers do to navigate the landscape without losing momentum?

Let’s break it down.

Insurance Costs Are Now a Major Deal Factor — Not Just a Side Note

A few years ago, insurance was more of a closing table afterthought — something the buyer handled with a quick quote and a monthly escrow estimate. Today, it’s a core part of the buyer’s affordability equation. If a buyer is already stretched to their loan limit, and insurance premiums come in $2,000 higher than expected, the entire deal can fall apart.

We’re seeing more and more buyers in Brevard requesting insurance quotes before even writing offers, especially on older homes, homes with older roofs, or properties in flood zones. It’s no longer enough to simply “love the house.” The math has to work — and insurance plays a major role.

Older Homes Are Taking the Biggest Hit

Here’s where sellers need to pay close attention: if your home is more than 20 years old, and you haven’t updated the roof, plumbing, electrical, or HVAC recently, it may be difficult — or expensive — for a buyer to insure. In some cases, buyers may be unable to secure coverage at all without inspections, four-point reports, or proof of recent upgrades.

In Brevard, where many homes were built in the 80s and 90s, this is becoming a deal breaker. Even if your home is well maintained, insurers want documentation — and buyers want confidence that they’re not walking into a future repair bill just to get a policy approved.

As a result, homes with newer roofs and updated systems are commanding a pricing premium — while outdated properties may need to adjust their asking price or offer seller credits to keep buyers at the table.

Roof Age Has Become a Pricing & Negotiation Lever

This one can’t be overstated: in today’s Florida insurance market, roof age is everything.

Many insurance carriers won’t issue a policy if the roof is more than 15 years old — regardless of condition. Others may require a full replacement before coverage begins. That means a 16-year-old roof in perfect shape could still prevent a buyer from closing — or force them to pay thousands more annually for high-risk coverage.

Smart sellers are getting ahead of this by either replacing the roof prior to listing or pricing accordingly and offering credits for replacement. As an agent, I walk my clients through these options before the home even hits the MLS — because surprises during escrow can kill deals fast.

Flood Zones & Wind Mitigation Add Layers of Complexity

Many homes in Brevard aren’t technically waterfront but still fall within FEMA flood zones — especially near the Indian River, the barrier islands, or low-lying areas like Cocoa or Titusville. Buyers are increasingly aware of this, and it’s influencing where they look and how much they offer.

Additionally, wind mitigation reports — which can provide significant discounts on premiums — are becoming standard fare in inspections. Buyers want homes with shutters, hurricane straps, reinforced garage doors, and impact-rated windows. If a home lacks these features, it’s not just a safety concern — it’s a cost multiplier.

What Sellers Can Do to Stay Competitive

Sellers who ignore the insurance conversation are setting themselves up for delays, cancellations, or steep last-minute negotiations. But those who anticipate the issue and prep accordingly? They stand out in today’s market.

Here’s what I advise:

Know your home’s insurability status before listing. Get a wind mitigation report, a 4-point inspection if needed, and be upfront with your agent about the age and condition of major systems.
Be willing to update or price strategically. A $10,000 roof replacement might save you $20,000 in lost equity or price drops later.
Highlight any features that lower insurance costs. This includes updated electrical, new plumbing, hurricane shutters, or reinforced garage doors. These are value-adds buyers will appreciate and insurers reward.

What Buyers Should Be Doing Now

If you’re shopping for a home in Brevard right now, don’t treat insurance like an afterthought. Make it part of your due diligence from the start.

Here’s how:

Get pre-quotes during the offer process. Don’t wait until underwriting — a surprise $5,000 premium can wreck your budget.
Work with a local insurance agent. National carriers often miss regional nuances. A Brevard-based insurance expert can help you find better coverage options and navigate roof or wind mitigation requirements.
Ask your agent (me!) to help identify red flags early. I can often spot homes that are likely to cause insurance headaches before you even fall in love with them — saving you stress, money, and heartache later.

Final Thoughts

Rising insurance premiums are now a central piece of the Florida real estate puzzle — not a footnote. But they don’t have to be a dealbreaker.

Whether you’re buying or selling, the key is to be informed, proactive, and strategic. A knowledgeable agent can help you navigate the fine print, avoid unnecessary costs, and close with confidence.

If you’re planning to move in 2025, let’s talk about how insurance might impact your situation — and how we can get ahead of it before it becomes an issue.

Ryan McAllister
Realtor®, Coldwell Banker Realty
📞 321-704-7103
🌐 RyanSellsBrevard.com
📧 Ryan.McAllister@cbrealty.com

Helping Brevard buyers and sellers navigate a shifting market — one smart decision at a time.