• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • Legislative Updates / News / Podcasts
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • Legislative Updates / News / Podcasts
  • Contact
  • MENU

New Call to Disclose Flood Risk

SHARE THIS

Pending FEMA report’s warning

Neighborhood flooding in Indian River County, Florida

A FEMA advisory board is recommending that past flood damage and future risk be disclosed during the sale of a home.  It noted Florida as one of 21 states that don’t require sellers to specifically disclose the property’s flood history.  But even in the 29 states that do have such a requirement, the board found the disclosure “is often extremely deficient” and lacking “valuable information” about a property.

Those conclusions and recommendation will be in the upcoming 2020 Annual Report by FEMA’s Technical Mapping Advisory Council, which is made up of national flood experts that are advising FEMA on its flood mapping program.  The group met during a series of late January videoconferences to approve final report language.  Their goal is to urge information be provided necessary for new homeowners to proactively decide whether to buy flood insurance.

Although current Florida law requires sellers and their real estate agents disclose known defects or anything that “materially affects” a property’s value, the report notes that specific flood disclosure is not required in Florida and other flood-prone states.  The Florida Realtors® has created a voluntary flood disclosure form and the National Association of Realtors has this 50-state summary of disclosures.

A bill filed in the Florida Legislature last year (SB 1842) would have required home sellers to specifically disclose any past flooding and insurance claims, past FEMA or other federal assistance, and present flood insurance coverage.  The bill failed to receive a hearing and there is no similar bill yet filed in the 2021 session.  We certainly know of cases where someone bought not knowing they were in a flood plain or had suffered previous flooding.  To the FEMA report’s point, it is a “buyers beware scenario.”

But as we’ve said before, the piece that’s missing is that insurance agents are not required to talk about flood insurance with their customers.  Regardless of a home’s past experience or future flood propensity, insurance agents have a responsibility to talk about flood insurance with customers at the time of initial property insurance policy issuance and on every renewal.  A handful of agents do, but for those that don’t?  The results are disastrous – yet Florida’s law is silent when it comes to mandatory insurance agent documentation of a conversation with its customers.  What do you think?  We’d love to hear from you.

Meanwhile, we’re still waiting for FEMA to release the new pricing associated with its National Flood Insurance Program (NFIP) Risk Rating 2.0, scheduled to take effect on October 1.  That’s the major overhaul in federal flood insurance rates that are supposed to be based more on advanced modeling and less on the old FIRM maps.  FEMA has said some NFIP policy premiums will go down, but many are expected to go up.  Commercial landlords and tenants are being advised to review their leases and be prepared for increased flood insurance premiums.  Likewise, owners of both commercial and residential property should be prepared for lenders to require flood insurance for properties having increased flood risks resulting from Risk Rating 2.0.

LMA Newsletter of 2-8-21

SHARE THIS

Tags: FEMA, Flood Insurance, Flood Insurance Rates, Flooding, Florida Realtors, National Association of Realtors, National Flood Insurance Program, Sellers Flood Disclosure

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2025
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts