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Imagine getting a note like this:
“My husband and I are retiring next year and moving to Florida. Everyone told us we’d save a fortune because there’s no state income tax.
Then we got a homeowners insurance quote on the house we like, and it was more than we pay now for home and car insurance combined. Did we just make a huge mistake?”
Let’s call them Barbara and Tom. And plenty of retirees face their exact question, and it’s a good one.
I’ve been a CPA since 1981, and I’ve lived in Fort Lauderdale since 2001.
Barbara and Tom are right about the taxes. “Florida does not impose a personal income tax,” the Florida Department of Revenue says. (1)
But homeowners insurance premiums in Florida rose 75% from 2021 to 2025, about double the 38% national increase, according to a report from the Coalition for an Insurable Future, as reported by WLRN. (2) The same report put Florida homeowners’ premiums at 4.4% of mean household income in 2024. (2)
And the homeowners policy isn’t the only cost to check. Florida has its own rules on hurricane deductibles, flood coverage and car insurance. (3)(4)(5)
Here’s my answer to Barbara and Tom: Don’t cancel the move. But don’t sign anything until you’ve run these six numbers.
1. Get the insurance quote before you fall in love with the house
It’s tempting to pick the house first and shop for insurance later. In Florida, flip that.
Get real quotes on any home you’re seriously considering, before you make an offer.
Comparing several insurers at once makes that faster. Insurify Home Insurance lets you compare home insurance quotes from multiple insurers in one place. Compare home insurance quotes.
Personally, I pay about $8,000 annually for homeowners, flood and wind insurance. Wind alone is more than $5,000.
2. Put the tax savings and the new bills side by side
Here’s the test I’d give Barbara and Tom. Write down what you pay in state income tax now. Then write down how much more you’ll pay in Florida for homeowners, flood and car insurance, plus cash to cover a hurricane deductible, which I’ll explain next.
If leaving your old state saves you $4,000 a year in income tax, but your insurance runs $4,000 a year higher, you’ve broken even before you’ve paid a mover.
Here’s another idea: If you have $100,000 or more invested, get a second set of eyes. Consider talking to financial advisor, especially one from Florida. To quickly find one, check out SmartAsset. They offer a free service that matches you with up to three fiduciary financial advisors.
They can help with tax savings, investment advice, Social Security strategies, and planning gaps you’d never see alone. And first appointments are typically free. Free, expert advice before the move, and longer-term, the potential to add a valuable expert to your team.
The SmartAsset questionnaire takes about 10 minutes and asks for a phone number near the end; provide it, but you control whether and when you respond to anyone. SmartAsset provides the match, not the advice.
3. Learn what your hurricane deductible really costs
This is the number to understand before you buy. In Florida, insurers generally must offer hurricane deductible options of $500, 2%, 5% or 10%, and the percentage is figured on your home’s dwelling coverage limit, not the damage. (3)
The state’s example: On a $200,000 dwelling limit, a 2% hurricane deductible is $4,000. (3)
Now do the math on a bigger house. A $400,000 dwelling limit with a 5% hurricane deductible means you’d pay the first $20,000 of hurricane damage yourself. A lower premium with a high deductible can be a bad trade if you don’t have that cash set aside.
4. Budget for flood insurance, even if you’re not on the water
“Flood damage is not covered by your Homeowners’ insurance policy,” Florida’s Department of Financial Services says. (6) You need a separate flood policy. (6)
Don’t wait for a storm in the forecast to buy it. Flood policies typically take 30 days from the date of purchase to take effect, according to FEMA. (4)
I live on a canal off the Intracoastal waterway here in Fort Lauderdale. My flood insurance has gone from $400 annually to $1,200 in just the last few years.
5. Re-price your car insurance, too
Moving to Florida means meeting Florida’s car insurance rules. The state requires vehicles to carry at least $10,000 in personal injury protection and $10,000 in property damage liability. Coverage must be continuous even when the car isn’t being driven. (5)
The state suggests asking your agent to transfer your current insurance to a Florida policy. (5)
To check out rates in Florida, and to compare rates wherever you live, use a comparison site like Insurify. Their platform gets top-rated carriers competing for your business in real time, showing you side-by-side quotes with no hidden “teaser rates” — just your actual lowest price, right now.
It won’t sell your info to telemarketers. And it costs nothing to check
Quick gut-check — if your money advice is coming from random online influencers, you’re playing a dangerous game. I’ve been a CPA since 1981 and writing about money since before the internet existed. Sign up for the free Money Talks Newsletter and get expert advice that’s been tested by time.
6. Ask about wind mitigation credits
Taking steps to protect a home from hurricane-force winds may earn premium discounts from your insurer. (6) Florida homeowners can elect to have an inspection to find out which wind mitigation credits they’re entitled to. (6)
Before you buy, ask whether the house has had a wind mitigation inspection, and ask your agent how much the credits could knock off the premium.
Over the years, I’ve added hurricane-resistant windows and doors to my house (about $25,000, 10 years ago) as well as hurricane straps to secure the roof. That’s why my wind insurance is “only” $5,000/yr.
My answer
Barbara and Tom didn’t make a mistake by wanting Florida. I love Fort Lauderdale. Wouldn’t consider living anywhere else. But I didn’t move here for the tax savings.
Florida can still be a smart retirement move. Just let the insurance quotes, not the real estate listing, tell you which house you can afford.
Sources: 1. Florida Department of Revenue; 2. WLRN; 3. Florida Department of Financial Services (hurricane deductible); 4. FEMA; 5. Florida Department of Highway Safety and Motor Vehicles; 6. Florida Department of Financial Services (homeowners)
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