Buying a home on Florida's coast is exciting — but it involves considerations you won't encounter in other markets. Flood zones, windstorm insurance, and condo reserve requirements can significantly impact your total cost of ownership.
This guide walks you through the process, with special attention to the coastal-specific factors that matter most in Volusia County.
STEP ONE
Get Pre-Approved (Not Pre-Qualified)
Before you start searching, get pre-approved by a lender. This is different from pre-qualification:
Pre-Qualification
Quick estimate based on what you tell the lender. Not verified. Sellers don't take it seriously.
Pre-Approval ✓
Lender verifies your income, assets, and credit. Gives you a specific loan amount. Sellers take your offer seriously.
Tip: I work with several local lenders who understand coastal properties and can factor insurance costs into your qualification. Ask me for recommendations.
STEP TWO
Understand Flood Zones
Flood zones dramatically affect insurance costs. Here's what you need to know:
Zone X (Minimal Risk)
Lowest flood risk. Flood insurance is optional but recommended. Annual cost: $400-$800.
Zone AE (High Risk)
1% annual chance of flooding. Flood insurance required if you have a mortgage. Annual cost: $1,500-$5,000+ depending on elevation.
Zone VE (Coastal High Hazard)
High risk with wave action. Strictest building codes. Flood insurance required. Annual cost: $3,000-$8,000+.
Key insight: A property's elevation relative to Base Flood Elevation (BFE) matters more than zone alone. A home in an AE zone with 2 feet of positive freeboard will have much lower insurance than one at or below BFE. This is a core part of my KCAP assessment.
STEP THREE
Budget for Insurance
Florida insurance costs are higher than most states. Budget accordingly:
Homeowners Insurance
Covers wind, fire, theft, liability
$2,500 – $5,000/year
Varies by age, construction, and wind mitigation
Flood Insurance
Separate policy, required in flood zones
$650 – $8,000+/year
Varies dramatically by zone and elevation
Pro tip: Private flood insurance can save 20-40% vs. NFIP (federal flood insurance) for well-elevated properties. I always recommend comparing both options.
STEP FOUR
Choose Your Area
Each Volusia County community has its own character. Here's a quick overview:
Port Orange
Family-friendly, top schools, suburban feel. 10-15 min to beach.
$385K
median
New Smyrna Beach
Beach town vibe, arts scene, surfing. Higher flood risk beachside.
$465K
median
Edgewater
Best value, Indian River access, growing community.
$310K
median
Daytona Beach
Diverse neighborhoods, wide price range, iconic beach.
$320K
median
Daytona Beach Shores
Oceanfront condos, resort-style living, premium location.
$425K
median
Ormond Beach
Historic charm, tree-lined streets, established neighborhoods.
$405K
median
STEP FIVE
Make an Informed Offer
When you find the right property, we'll use the KCAP assessment to inform your offer strategy. This includes:
- → Flood zone verification and insurance cost estimates
- → Wind mitigation status and potential savings
- → For condos: reserve funding analysis and assessment risk
- → Total ownership cost projection
- → Comparable sales analysis
The KCAP advantage: Armed with actual data on insurance costs and risk factors, you can negotiate from a position of strength — often securing $3,500-$8,000 in price adjustments or seller concessions.
STEP SIX
Complete Due Diligence
Once under contract, you'll have an inspection period to complete due diligence. For coastal properties, this typically includes:
General Home Inspection
$350-$500
Wind Mitigation Inspection
$75-$150 (saves $400-$800/year)
WDO (Termite) Inspection
$75-$125
4-Point Inspection
$100-$150 (required for older homes)
For condos: Review HOA financial statements, reserve study, meeting minutes, and any pending special assessments during this period.
STEP SEVEN
Close & File Homestead
Closing day! You'll sign documents, receive keys, and officially become a homeowner. But don't forget this critical post-closing step:
File for Homestead Exemption
If this is your primary residence, file for Florida Homestead Exemption by March 1st of the following year. This reduces your assessed value by $50,000 and caps annual assessment increases at 3%. Don't miss this — it can save you thousands over time.
I'll provide you with a closing checklist and reminders to ensure you don't miss any important deadlines.
Ready to Get Started?
I'm here to guide you through every step of the process. Let's talk about your goals and timeline.