Hazard Insurance Requirements in Florida
Florida hazard insurance requirements include mandatory lender coverage, separate wind/flood policies in many areas, and special provisions for sinkhole risk. Lapsed coverage triggers expensive force-placed insurance.
Lender Requirements
- Coverage for loan balance or full replacement cost
- Lender named as mortgagee/loss payee
- Continuous coverage mandatory (no lapses)
- Flood insurance for FEMA flood zones
- Separate windstorm policy in coastal counties
Lapse Consequences
- Force-placed insurance: 2-5× more expensive
- Limited coverage (lender's interest only)
- Cost added to mortgage payment
- May constitute loan default
- Lender may accelerate the loan
Florida-Specific
Wind mitigation discounts, Citizens Property Insurance, Hurricane Catastrophe Fund, mandatory sinkhole coverage offer, AOB restrictions (2022), and Insurance Guaranty Association.
Related Terms
- Closing — Insurance verification
- Escrow — Premium escrow
- Encumbrance — Mortgage requirements
Barnes Walker Real Estate
Barnes Walker's attorneys ensure hazard insurance compliance for Florida real estate closings. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC