Top 10 Insurance Challenges NJ Homeowners Face When Moving to Boca Raton, Delray Beach, Boynton Beach & Deerfield Beach

Relocating from New Jersey to South Florida involves more than sunshine and tax advantages. Insurance structures in Palm Beach County and Northern Broward operate very differently from Bergen County, Hudson County, and the greater NYC metro area.

Here are the top ten insurance challenges New Jersey homeowners should understand before purchasing property in Boca Raton, Delray Beach, Boynton Beach, or Deerfield Beach.

1. Hurricane Deductibles Are Percentage-Based

In New Jersey, most homeowners' insurance deductibles are fixed dollar amounts.

In Florida, hurricane deductibles are typically 2 percent to 5 percent of the insured dwelling value.

Example:
On a $900,000 home with a 2 percent hurricane deductible, the out-of-pocket exposure is $18,000 before insurance pays.

This surprises many NJ buyers.

2. Flood Insurance Is Often Separate

Standard Florida homeowners policies do not cover flood damage.

Flood insurance may be required if the property is located in a FEMA-designated flood zone in Boca Raton, Deerfield Beach, or Delray Beach.

Even homes outside high-risk zones can experience rising groundwater or storm surge exposure.

3. Roof Age Can Make or Break Insurability

Florida carriers heavily scrutinize roof age.

Many insurers will not issue new policies on roofs older than 15 years unless inspection and documentation are provided.

In New Jersey, roof age rarely blocks policy issuance in the same way.

4. Wind Mitigation Inspections Impact Premiums

Wind mitigation inspections evaluate:

• Roof-to-wall connections
• Impact-resistant windows
• Shutters
• Secondary water barriers

Homes in Palm Beach and Broward counties with proper wind mitigation features can receive substantial insurance credits.

NJ homeowners are often unfamiliar with this inspection process.

5. Condo Insurance Is Structurally Different

When purchasing a condo in Boca Raton or Delray Beach:

The HOA carries a master policy.
The unit owner must carry an HO6 policy.

However, the level of coverage provided by the association varies widely.

Some associations insure drywall in.
Others insure only common elements.

This directly impacts required coverage limits.

6. HOA Financial Health Affects Risk Exposure

After Florida’s condo safety legislation changes, associations must meet structural reserve requirements.

If reserves are underfunded, special assessments may follow.

Insurance premiums can rise sharply in buildings with:

• Deferred maintenance
• Litigation history
• Poor reserve studies

This risk does not typically present the same way in NJ condo markets.

7. Insurance Premium Volatility Is Higher in Florida

Florida’s property insurance market has experienced carrier exits, insolvencies, and rate increases over recent years.

Premiums in Palm Beach County and Broward County can change significantly at renewal, even without claims.

NJ homeowners often expect stable multi-year pricing.

8. Limited Carrier Availability in Certain Areas

In some coastal zones of Deerfield Beach or Delray Beach, fewer private carriers may be willing to write policies.

This may push homeowners into Citizens Property Insurance Corporation, Florida’s insurer of last resort.

Policy structure and coverage limitations differ from private carriers.

9. Loss Assessment Coverage Is Critical for Condo Owners

If a condo association’s master policy deductible is large, unit owners may face loss assessment charges.

HO6 policies should include sufficient loss assessment coverage to protect against these exposures.

Many NJ buyers are unaware of this layer.

10. Timing Insurance Binding With NJ Sale Is Crucial

When coordinating a NJ home sale with a Florida purchase, insurance must be:

• Bound before closing
• Reviewed early in escrow
• Verified for deductibles and exclusions

Last-minute insurance surprises can delay Florida closings.

Strategic sequencing avoids this.

Why This Matters for NJ Homeowners

Insurance structure, deductible exposure, HOA reserves, and carrier availability can materially affect long-term retirement capital when relocating from New Jersey to South Florida.

Understanding these factors before purchasing in Boca Raton, Delray Beach, Boynton Beach, or Deerfield Beach protects equity and prevents avoidable financial stress.

I guide NJ homeowners into their Florida lives one smart move at a time.

High-touch service. Data-driven decisions. Zero surprises.

If you are planning a NJ to South Florida transition and want a structured capital and risk review before making a move, schedule a private NJ–FL Capital Blueprint Session.

Scott Selleck
NJ–FL Advisory Council
The Selleck Group | KW City Views Realty
2200 Fletcher Avenue, Suite 502
Fort Lee, NJ 07024
Office: 201-592-8900
Cell: 201-970-3960
Website: www.SelleckSellsNJ.com
Email: [email protected]