Buying a coastal rental in South Florida? Budget the insurance

A HelloNation piece featuring Fort Lauderdale real estate expert Howard Goldberg lays out what coastal rental and small multifamily ownership actually involves in South Florida. Property near the ocean generally needs separate flood coverage, windstorm coverage, and higher deductibles than an inland home. Rentals bring their own paperwork: municipal registration, tax accounts, inspections, and short-term rental rules that vary city by city. HOA and condo boards add lease minimums, parking limits, and guest policies on top.

The renewal is where the math turns. Buyers price the deal off year-one premiums and then get surprised when the number moves. Two details matter for a Florida rental. Hurricane deductibles are written as a percentage of the dwelling limit, not a flat dollar amount, so a 5% deductible on a $600,000 building is $30,000 you cover before the carrier pays. And on a multifamily property, one policy change hits every unit at once, which turns a modest rate increase into a real cash-flow problem. Salt air and humidity chew through roofs, railings, and AC systems faster than inland, and deferred maintenance is the first thing an adjuster points to after a storm.

An independent agent can quote the wind and flood pieces before you close, show you what the deductible actually costs at claim time, and re-shop the policy at renewal.