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It depends on who you ask. Florida’s abundant sunshine and water create ideal conditions for lush, green lawns, and its allure includes no state income tax and a relatively affordable housing market. With approximately 906 new residents moving to Florida each day, it’s no wonder many are drawn to the Sunshine State in search of a lower cost of living.

However, before you pack your bags and make the move, there are some unexpected costs and considerations to keep in mind. Here’s what you need to know:

Protecting Your Assets

Florida offers a Homestead Exemption that can provide significant property tax savings and creditor protection. To maximize these benefits, you may need to adjust your estate planning documents, such as your trust, to comply with Florida’s homestead laws. Additionally, ensure that your Health Care Directives and Powers of Attorney are updated according to Florida's state regulations to ensure they are valid and enforceable.

Homeowners Associations (HOAs)

In Florida, a Homeowners Association (HOA) manages and oversees residential communities, and fees can be billed monthly, quarterly, or annually. If the property you’re considering is part of an HOA, obtain a detailed list of what the fees cover to determine if the additional cost is worth it.

Community Development Districts (CDDs)

While many Californians are familiar with HOAs, Community Development Districts (CDDs) might be new to you. CDDs are special-purpose government entities designed to manage and finance the infrastructure and amenities of a planned community. Purchasing property in a CDD might incur additional fees through property taxes or special assessments, so be sure to factor these into your budget if you are looking at purchasing property in a CDD.

Car Insurance

Florida’s car insurance premiums can be high due to its dense population, a significant number of uninsured drivers, and frequent accidents. The state's no-fault insurance system also contributes to elevated costs. Be prepared for potentially higher insurance premiums compared to other states.

Homeowners Insurance

When it comes to homeowners insurance, Florida is on par with California, with both states having high natural risk factors. The cost for homeowners insurance can vary widely based on location, property characteristics, and coverage needs. In Florida, insurance companies often have specific policies regarding the age of your roof, with many preferring roofs that are less than 15-20 years old. If your roof is older, you might face higher premiums or need to undergo an inspection.

Pest Control

Florida’s warm, humid climate is a haven for pests like chinch bugs, sod webworms, and palmetto bugs (large roaches). Effective pest control will be essential to manage these issues and maintain your lawn and home.

Electricity Costs

Unlike coastal California, which benefits from cooling breezes, Florida’s hot and humid climate means that air conditioning is a must to prevent moisture buildup in homes. This can lead to higher electricity costs, so be prepared for potentially increased utility bills.

Health Insurance

Health insurance in Florida generally costs more than in California. California’s more competitive insurance market, along with robust consumer protections and regulations, helps keep prices lower. Florida’s higher prevalence of chronic conditions and aging population can lead to higher premiums.

In summary, while Florida offers many attractive features, it’s important to consider these factors and costs before making the move. In the end, the grass is greener where you water it.