Plus, rising concern over repeated flood claims
New flood disclosure laws go into effect in Florida, new data from FEMA on the large number of properties with repetitive flooding, plus a startling report says half of all floodplain development in the U.S. in the last 20 years has been right here in Florida. It’s all in this week’s Flood Digest.
Home Flood Disclosure: Starting October 1, 2024, Florida’s new flood disclosure law (HB 1049) goes into effect, bringing increased transparency to residential property transactions. Sellers will now be required to inform potential buyers if a property has ever experienced flood damage or received federal aid for flooding. Importantly, sellers must also disclose that standard homeowners’ insurance does not cover flood damage, emphasizing the need for additional flood insurance policies. This measure is part of 34 new laws taking effect statewide and aims to better protect homebuyers from unforeseen flood-related risks. LMA applauds Senator Jennifer Bradley (R-Fleming Island) and Representative Christine Hunschofsky (D-Parkland) for leading the passage of this bill. The Florida Realtors supported it as well which will be so helpful in this disclosure initiative going forward. Both legislators penned this Op Ed last week that is a great read.
Repetitive Flooding: In a broader flood risk landscape, a recent report reveals that over 250,000 properties nationwide have repeatedly filed flood claims through the National Flood Insurance Program (NFIP). Florida ranks third in this troubling statistic, with nearly 27,000 properties designated as repetitive loss properties (RLPs). Recurrent flooding events in high-risk zones contribute significantly to the growing cost of flood insurance and create heightened vulnerability for homeowners.
Building in Floodplains: Adding to the concern, research from the University of Miami shows that 21% of Florida’s new housing over the past two decades has been built in floodplains. While this percentage is lower than anticipated, it still represents a major flood risk, particularly as Florida continues to experience rapid population growth and ongoing coastal development. Nationally, the data shows more than 2 million acres of floodplain have been developed, with about half of that here in Florida. As Florida implements new disclosure requirements and grapples with recurrent flood claims, these trends underscore the importance of proactive flood risk management for both homeowners and policymakers.
LMA Newsletter of 9-30-24
