What Homeowners Insurance Does a Lender Require in Florida?

Short answer

For a conventional loan, a Florida lender wants a policy that covers the home at replacement cost, includes windstorm and named storms, and has no deductible above 5% of the coverage amount, as of November 2026 under Fannie Mae's Selling Guide. If the home sits in a flood zone that starts with A or V, flood insurance is also required. Plan for the inspections insurers ask for (4-point, wind mitigation, roof), and have a paid binder in the file before closing.

Dwelling coverage: what the lender checks

Fannie Mae's rule for 1-4 unit homes is section B7-3-02 of its Selling Guide (dated 08/05/2026). It is the baseline most conventional lenders use. Here is what it asks for:

• Replacement cost coverage. The policy must pay to rebuild the home, not just its depreciated value. The roof is the exception: actual cash value on the roof is acceptable.
• Required perils. A "Special" form or equal, covering at least fire or lightning, explosion, windstorm (including named storms), hail, smoke, aircraft, vehicles, and riot or civil commotion.
• Deductible cap. No more than 5% of the coverage amount for all required perils combined. If windstorm has its own deductible, that one also cannot exceed 5%.
• No missing perils. If your policy excludes wind, you need a separate wind policy to fill the gap.

FHA, VA and non-QM lenders have their own versions, so ask which rules apply to your file. You shop the policy; the lender checks it.

Hurricane deductibles: 2%, 5% and the trap at 10%

Florida law (s. 627.701, 2026 Florida Statutes) makes insurers offer hurricane deductibles of $500, 2%, 5% and 10% of the dwelling limit. On homes valued at $250,000 or more, the $500 option does not have to be offered.

Two details matter for your mortgage:

• It is a percentage of the dwelling limit, not of the damage. On a $400,000 dwelling limit, a 2% hurricane deductible is $8,000 and a 5% deductible is $20,000.
• It applies once per calendar year to all hurricane losses on a personal residential policy, not once per storm.

A 10% hurricane deductible lowers the premium, but it is above Fannie Mae's 5% cap, so it will not work on a conventional loan. Pick 2% or 5% and make sure you can cover that amount from savings.

Flood insurance: when it is required

Your homeowners policy does not cover flood. Flood is a separate policy.

Required by the lender: If the home is in a Special Flood Hazard Area (any zone starting with A or V), Fannie Mae requires flood insurance (B7-3-06). FEMA's NFIP site says homes in high-risk areas with mortgages from federally regulated lenders must carry flood insurance and the premium must be escrowed. Check your flood zone before you make an offer.

How much: For a 1-4 unit home, the lesser of 100% of the replacement cost of the building, the NFIP maximum, or the loan balance. As of November 2026, NFIP building coverage goes up to $250,000 and contents up to $100,000. Private flood policies are acceptable if they are at least as broad as NFIP.

Outside a flood zone: The lender may not require it, but South Florida floods outside mapped zones too, and Citizens may require it anyway (next section).

Citizens: the insurer of last resort, and its flood rule

Citizens Property Insurance is Florida's state insurer for homeowners who cannot find coverage in the private market. Under its clearinghouse rules, you may be eligible if no private company will offer coverage, or if the best private offer is more than 20% higher than Citizens' premium for comparable coverage.

Lenders accept Citizens policies. The catch is flood. For Citizens policies that include wind, flood coverage has been phased in by dwelling value (Coverage A), as of November 2026:

• Homes in a Special Flood Hazard Area: required for policies renewing from July 1, 2023.
• $600,000 and up: from January 1, 2024.
• $500,000 and up: from January 1, 2025.
• $400,000 and up: from January 1, 2026.
• All policies, regardless of value: from January 1, 2027.

Condo unit-owner policies are exempt, and so are policies that exclude wind. So if you are buying a house in 2027 and Citizens is your only option, budget for flood insurance even if the home is in zone X.

Inspections and roof age: what decides if you can get a policy

In Florida, the inspection report often decides the premium, and sometimes whether an insurer will write the home.

• 4-point inspection. Roof, electrical, plumbing and HVAC. Citizens requires one on homes more than 20 years old, and many private insurers ask for one on older homes too.
• Wind mitigation inspection. Documents features like roof-to-wall connections and opening protection. Florida law (s. 627.0629) requires insurers' rates to include discounts for these features, so this report can lower your premium. Ask the seller for an existing one.
• Roof inspection. Citizens asks for proof of at least 5 years of remaining life on shingle roofs over 25 years old and tile or metal roofs over 50 years old.

The Florida roof age law. Under s. 627.7011(5) of the 2026 Florida Statutes, an insurer may not refuse to issue or renew a homeowners policy solely because the roof is less than 15 years old. If the roof is 15 years or older, the insurer must let you get an inspection by an authorized inspector, at your cost, before requiring replacement, and may not refuse coverage based on roof age if the inspection shows 5 or more years of useful life left.

If the home is older, order the 4-point and wind mitigation inside your inspection period.

Binder, escrow and condos

Binder before closing. The lender needs proof of coverage before it funds: a homeowners insurance binder or declarations page naming the lender as mortgagee, with the first year's premium paid or collected at closing. A late binder is one of the most common reasons a Florida closing slips.

Escrow. Most loans collect insurance and property taxes monthly in an escrow account. The CFPB notes that when premiums or taxes change, your escrow payment and total monthly payment change too. Florida premiums move at renewal, so a jump can create an escrow shortage. Property taxes are shifting too: Florida voters passed Amendment 3 on November 3, 2026 (unofficial until certified), which raises the non-school homestead exemption starting in 2027, with first tax bills affected in November 2027.

Condos: HO-6 vs master policy. The association's master policy covers the building. Fannie Mae (B7-3-04) requires an HO-6 (walls-in) policy when the master policy does not cover your unit's interior or improvements, or has a per-unit deductible. The HO-6 must cover at least the greater of those parts or that deductible, at replacement cost, with a deductible no higher than the greater of 5% or $2,500. See our condo loans in Florida guide.

My Safe Florida Home. This state program offers free wind mitigation inspections and grants of up to $10,000 for approved hardening upgrades. As of November 2026 its official site shows grants and inspections available, but funding has opened and closed in waves, so check mysafeflhome.com for current status.

How to keep insurance from delaying your closing

• Get insurance quotes before you make an offer. A big premium changes what you can afford, and it counts in your debt-to-income ratio.
• Ask the seller for the age of the roof, any existing 4-point and wind mitigation reports, and the flood zone.
• Confirm the hurricane deductible is 5% or less and that wind is not excluded.
• Send your agent's contact to your loan officer so the binder, mortgagee clause and invoice come straight to the lender.

QMS Lending is an independent mortgage broker in Miami, FL with access to 100+ lenders. We do not sell insurance, but we will tell you exactly what your lender needs to see. Rates vary daily; call 305-425-1990 for today's pricing. All loans are subject to credit approval and underwriting.