That fee is just to maintain the common areas, pool, clubhouse, shuffleboard. Each homeowner takes care of their own property as it is fee simple ownership, just like a house and they are responsible for any maintenance, upkeep, etc. Yes all of Oldsmar is in a flood zone but depending on which part of the community you live in, the insurance fee might be less as part of the community is directly on the canal whereas others are on the higher areas. It is a 55+ community and one pet per household allowed regardless of weight.
If you're borrowing money to buy your property and it is in a flood zone (per the FEMA map above) then your lender will most likely require it to protect their investment. If you want to take the risk and will not have a mortgage, it's up to you whether or not you should pay for flood insurance.
Looks like the HOA is only $40/mo or possibly less... If you have a Realtor helping you they can track down the exact details/fees/etc. Or you can stop by the community to see if they can help.
All the best,
Alma Rose Kee PA
Furture Home Realty http://www.SoldOnTampa.com