Market Brief
Every Citizens Property Insurance home policy with wind coverage must carry flood insurance from January 1, 2027, and 145 of 155 Florida Keys home sales in September 2026 closed at $400,000 or more.
Citizens had 1,542 Monroe County policies at an average $4,380 premium in April 2026. Its flood rule drops its value threshold on January 1, 2027.
From January 1, 2027, every Citizens Property Insurance personal residential policy that includes wind coverage must also carry flood insurance, regardless of the home's value or flood zone, under the phase-in Citizens sets out under section 627.715, Florida Statutes. In 2026 the rule applies outside high-risk flood zones only when dwelling coverage is $400,000 or more. Citizens reported 1,542 policies in force in Monroe County with an average premium of $4,380 as of April 2026. In September, 145 of 155 Florida Keys home sales closed at $400,000 or more, according to our Florida Keys MLS data.
Our earlier piece on Florida Keys new listings and price cuts covers listing activity, and our September articles on the Florida Keys median price, closed sales, days on market and seller concessions cover the monthly figures. The full series is on the Florida Keys market data hub. This piece covers the flood coverage rule and what it means for carrying costs.
What does the Citizens flood requirement say?
Citizens, the state-created insurer of last resort, lists this schedule for personal residential policies outside the special flood hazard area:
| Effective date | Flood coverage required when dwelling coverage is |
|---|---|
| January 1, 2024 | $600,000 or more |
| January 1, 2025 | $500,000 or more |
| January 1, 2026 | $400,000 or more |
| January 1, 2027 | Any amount (all policies) |
Source: Citizens Property Insurance Corporation, flood requirements page, read October 27, 2026.
Homes inside the special flood hazard area, zones such as A, AE, V and VE, already must carry flood coverage. The requirement applies to new and renewing policies. Citizens lists three exemptions: condominium unit-owner policies, tenant contents policies, and policies that exclude wind and hail coverage. Flood dwelling coverage must at least equal the Citizens dwelling value, or the most the National Flood Insurance Program will write if that is lower: $250,000 under the regular program.
How many Keys homes are above the $400,000 line?
Most of them, by sale price. Our September 2026 Florida Keys Market Pulse, with closings through October 24, counted 155 sales in Monroe County. Of those, 145 closed at $400,000 or more, 136 at $500,000 or more and 81 at $1 million or more. Only 10 sold below $400,000.
The pattern holds for the year. From January through September 2026, 1,395 of 1,517 Keys sales, or 92.0 percent, closed at $400,000 or more. Among the 1,209 active listings on October 24, 1,151 were priced at $400,000 or more and 58 were priced lower.
Sale price is not the same as dwelling coverage. Coverage A insures the cost to rebuild the structure and leaves out land, which makes up a large part of value in the Keys. A home that sells for $600,000 can carry dwelling coverage well under $400,000. That is why the January 2027 change matters here: once the threshold goes away, the value of the structure no longer decides whether a Citizens policy needs flood coverage.
What do Keys homes cost to insure and tax?
The Citizens average premium in Monroe County was $4,380 in April 2026, the figure our Florida true cost of ownership calculator uses for the county. Flood coverage is a separate policy with its own premium, priced by address under FEMA's Risk Rating 2.0 method. Our Florida flood insurance calculator shows whether the Citizens rule or a lender rule applies and gives statewide average premium ranges by zone.
Monroe County's total property tax rate in our data is 8.816 mills for the 2025-26 tax year, about $8,816 a year per $1 million of taxable value before exemptions. The Monroe County property tax page breaks that down. Town insurance estimates are on the Key West home insurance cost, Key Largo home insurance cost and Marathon home insurance cost pages.
Which Keys buyers are affected?
The rule applies to Citizens policies, so it reaches buyers who end up insured with Citizens. Single-family homes are the bulk of Keys sales: 102 of the September sales, at a median of $1,290,000. Condo buyers with a unit-owner policy are exempt from the Citizens flood rule, although the association's master policy and any lender rules still apply. The September condo median was $550,000 across 21 sales. Townhouse sales had a median of $615,000 across 9 sales, and manufactured homes $485,000 across 12.
By ZIP code, September medians ran from $946,870 in Big Pine Key (33043) to $2,425,000 in Lower Matecumbe (33036). Recent prices are on the Key West, Key Largo, Marathon and Big Pine Key market pages.
For buyers, the practical step is to get a flood quote alongside the wind and homeowners quote before going under contract, since flood is a separate policy and its cost varies by address.
People also ask
Do Citizens policyholders in the Florida Keys need flood insurance?
From January 1, 2027, Citizens requires flood coverage on every new and renewing personal residential policy that includes wind coverage, regardless of value or flood zone. In 2026 the requirement applies to homes in the special flood hazard area and to homes with dwelling coverage of $400,000 or more. Condo unit-owner and tenant policies are exempt.
How much is Citizens insurance in Monroe County?
Citizens reported 1,542 policies in force in Monroe County with an average premium of $4,380 as of April 2026. Flood insurance is a separate policy and cost.
How many Florida Keys homes sell for more than $400,000?
In September 2026, 145 of 155 Florida Keys home sales closed at $400,000 or more, and from January through September, 1,395 of 1,517 did, or 92.0 percent.
Limitations
The Citizens requirement is summarized from Citizens' own flood requirements page; check the current policy terms with Citizens or an agent for any specific home. Sale price bands come from closed MLS sales and do not measure dwelling coverage, which excludes land. The Citizens average premium is a county average for April 2026 and is not a quote. The 8.816 mill rate is a county average for the 2025-26 tax year and actual rates vary by location. Monthly sales counts can be revised as the MLS updates records. This article is general information, not insurance, legal or tax advice.
Sources and links
- Citizens Property Insurance Corporation, flood insurance requirements, read October 27, 2026; section 627.715, Florida Statutes.
- Citizens Property Insurance Corporation, policies in force and premium, detail by county, April 2026.
- Momentum Research, September 2026 Florida Keys Market Pulse, closings and inventory through October 24, 2026. Listing data provided by Florida Keys MLS, Inc. Information is deemed reliable but is not guaranteed by the MLS to be accurate.
- Monroe County millage: Momentum Research property tax data, 2025-26 tax year.
- Full monthly series and per-feed attribution: Florida Keys market data
Disclosure: Jon Brooks is a co-founder of Momentum Realty, a Florida real estate brokerage that owns and funds Florida Housing Intelligence. Momentum has a financial interest in Florida real estate transactions, including in markets named here. See our editorial standards.
Market statistics in this article are computed from MLS data licensed by Momentum Realty, and are current as of the date shown. Data may be preliminary and subject to revision by its source. This article is general information, not advice about any specific property, transaction, or financial decision, and is not a representation about any specific property, community, builder, or association.
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