most of this area of florida within 5 miles of the water may require some sort of flood insurance. There are different levels though of flood insurance. If the home is newer and is over 9 ft. in elevation (you'll know tihs when they do an elevation certificate) which seller should have already then your flood insurance maybe very little. I know people who are in a flood zone paying 400/yr. for flood insurance. to give you an idea my own home which was built in 1950's is only about 1 ft. above sea level and i pay 2500/yr. for insurance and my home is worth about 360,000 now my 2 neighbors who have brand new homes but there homes are over 9ft. above sea level they pay 500/yr. and 1 homes is currently on the market for 1.6 million and the other apprasied at 800,000. this is info your buyer's agent should be telling you though. In a nut shell I would make the contract if you like this home contingent on you getting flood insurance which you find exceptable. there are addendums for this when you presdent offer.
Let me know if I can help
The Leventhal Team
While Homeowners' insurance is high in Florida, it still is much better than being in a northern state & having to shovel snow. My insurance in New York was $300 a year - here it is $2500 a year. However, I don't pay for winter clothes, winter heating, snow tires, etc., etc. I wouldn't trade the sunshine for lower insurance anywhere. By the way, my taxes are STILL lower than what I was paying in New York.
I wouldn't rule out a home based on that one criteria. Evaluate the whole package and determine the net value to you.
Do work with an insurance agent (and your Realtor can help out here, too!) to gain a clear understanding of your coverage and expenses. Not all flood insurance policies are created equal.