The law mandates that sellers provide flood history information, including past insurance claims and federal aid, before a sales contract is executed.
Florida was one of 18 states without a flood disclosure requirement, despite being highly susceptible to flooding due to climate change.
While the law is a step forward, it has loopholes and does not require disclosure if no insurance claim was filed or if the property is in a flood zone.
Key quote:
“Having the information will help buyers make more informed and better decisions about protecting what is likely to be their single biggest asset, their homes.”
— Rachel Cleetus, policy director of the Union for Concerned Scientists
Why this matters:
Disclosing flood history helps protect buyers and could prompt better planning decisions in flood-prone areas. However, gaps in the law may leave some risks unaddressed, highlighting the need for more comprehensive measures.
The consequences vary widely over time and space, so it’s difficult to make a definitive ranking that says “buy here, not there,” but a growing body of evidence helps highlight some general trends.
When told about risks from flooding, prospective homebuyers were less likely to make offers on vulnerable properties, according to new research, which says that a growing awareness of climate risk could stunt home prices in flood-prone areas.
The mortgage giant said potentially relevant disclosure could cover “a property’s current flood zone designation, past property flooding events, and current flood insurance coverage on the home.”
