Living on Merritt Island means waking up to stunning waterfront views, watching rocket launches from your backyard, and enjoying the laid-back Space Coast lifestyle. But here's what your real estate agent might not have emphasized: insuring your barrier island home is considerably more complex—and expensive—than protecting a house just a few miles inland. Your home sits between the Atlantic Ocean and the Indian River Lagoon, which puts you squarely in hurricane alley with flood risks from both directions.
The good news? Understanding your insurance needs doesn't have to be overwhelming. Whether you're buying your first waterfront property or you've been weathering storms here for decades, this guide breaks down everything you need to know about protecting your Merritt Island home.
What You'll Actually Pay for Home Insurance
Let's talk numbers. Home insurance on Merritt Island averages around $4,449 per year—that's roughly 34% higher than Florida's already-elevated state average of about $2,924. But that's just the starting point. Your actual premium depends heavily on your home's value and specific location on the island.
For a $150,000 home, you might pay around $3,944 annually. If you own a $450,000 waterfront property, expect to budget $10,251 or more each year. And here's the kicker: that's just your homeowners policy. It doesn't include flood insurance, which is essentially mandatory for Merritt Island properties and can add another $1,000 to $3,000 or more annually depending on your elevation and flood zone.
The silver lining? After years of brutal rate increases, the market is finally stabilizing. Citizens Property Insurance Corporation announced an average rate reduction of 5.6% for 2025, and statewide increases are running below 2% year-to-date—a dramatic improvement from the 34% surge between 2022 and 2024.
Why Barrier Island Living Means Higher Premiums
Merritt Island's unique geography is both its greatest asset and its biggest insurance challenge. This barrier island sits as a thin strip of land between the Atlantic Ocean and the Indian River Lagoon, with Brevard County experiencing 53 hurricanes in recorded history. The low-lying terrain makes properties particularly vulnerable to storm surge from both bodies of water.
With limited natural wind barriers, your home faces the full force of hurricane-strength winds coming off the Atlantic. Many areas of Merritt Island are designated as severe flood risk zones by FEMA, with some properties sitting in areas vulnerable to 100-year flood events where flood insurance is required by mortgage lenders. Recent storm surge modeling has resulted in changes to flood zone designations on the barrier islands, which directly impacts insurance premiums—some homeowners are seeing increases, while others benefit from reduced rates.
Here's something most people don't think about: evacuation logistics. Merritt Island connects to mainland Brevard County via just a few bridges and causeways. During severe storms, these routes get closed due to high winds or flooding, potentially cutting the island off from the mainland. Insurance companies factor this into their risk calculations because limited evacuation routes can mean more homeowners sheltering in place, potentially leading to more claims.
The Two-Policy Reality: Why You Need Both
This confuses almost everyone: your homeowners insurance policy specifically excludes flood damage. It will cover wind damage from a hurricane—torn-off shingles, broken windows, even a tree through your roof. But if storm surge floods your first floor with three feet of seawater? That's flood insurance territory, and you need a separate policy.
Most Merritt Island homeowners purchase flood insurance through the National Flood Insurance Program (NFIP), which offers up to $250,000 in building coverage and $100,000 for contents. If you own a high-value waterfront home, you'll want to consider excess flood insurance to cover amounts beyond NFIP limits. Just one inch of water can cause over $20,000 in damage to your home—and that's particularly relevant in low-lying areas like zip code 32937, which sits at just 6 feet elevation.
Your standard homeowners policy covers your dwelling, other structures (like a detached garage or dock), personal property, liability protection if someone gets injured on your property, and additional living expenses if you're displaced after a covered loss. But pay close attention to wind coverage—some insurers in coastal areas impose separate wind deductibles that can be as high as 2-10% of your dwelling coverage rather than a flat dollar amount.
How to Lower Your Premiums Without Sacrificing Protection
Wind mitigation is your secret weapon for reducing insurance costs on Merritt Island. A wind mitigation inspection costs a few hundred dollars but can save you thousands on premiums over time. Inspectors evaluate features like your roof shape and covering, roof-to-wall attachments, roof deck attachment, wall construction, and opening protection (impact-resistant windows, doors, and garage doors).
If you're building or renovating, modern construction standards can significantly reduce your rates. Homes built after 2002 typically incorporate stronger building codes implemented after Hurricane Andrew. Reinforced roofing, impact-resistant windows and doors, concrete block construction, and hurricane shutters or storm panels all qualify for discounts.
Other ways to reduce costs include bundling your home and auto insurance with the same company, raising your deductible (if you can afford a higher out-of-pocket expense), installing security systems or monitored alarms, and maintaining good credit. Also, shop around regularly—Brevard County is the sixth-largest market for Citizens Property Insurance in Florida, but private insurers are increasingly re-entering the market and may offer competitive rates.
Living in the Shadow of the Launch Pads
Kennedy Space Center's proximity adds a unique dimension to Merritt Island living. In 2024, the Space Coast saw a record 93 rocket launches, and projections suggest this could increase to 571 annual launches by 2053, potentially reaching 1,252 per year further in the future. While watching launches from your backyard is undeniably cool, it raises questions about long-term property impacts.
Local officials have documented concerns about possible structural damage from launch vibrations, with residents reporting baseboards separating, small cracks appearing, and windows beginning to separate following launches. Cape Canaveral has approved studies to install sensors measuring sound levels, structural vibrations, and air quality impacts during launches. While standard homeowners policies don't currently have specific exclusions for rocket launch-related damage, this is an evolving situation worth monitoring as launch frequency increases.
Getting Started with the Right Coverage
Start by getting quotes from multiple insurers—both national carriers and Florida specialists. Make sure you're comparing apples to apples by requesting the same coverage limits and deductibles from each company. Ask specifically about wind deductibles, hurricane coverage, and any sub-limits on personal property.
Get a flood insurance quote separately, even if you're not in a high-risk zone. Flood maps change, and having coverage in place before you need it means no waiting period. If you're not required to have flood insurance but buy it voluntarily, your premiums will likely be much lower than high-risk properties.
Finally, schedule that wind mitigation inspection and gather your home's documentation—age, construction type, roof replacement date, and any upgrades you've made. The more information you can provide insurers about your home's storm-resistance features, the better your chances of securing competitive rates. Living on Merritt Island comes with unbeatable perks, and with the right insurance strategy, you can protect your investment while enjoying everything this unique barrier island community has to offer.
