Florida Law Mandates Flood Disclosure for Home Sellers

A new law in Florida, HB 1049, has taken effect requiring home sellers to disclose flood history to potential buyers, including any insurance claims related to flooding and federal assistance received. This initiative aims to improve transparency for buyers, especially in a state where flooding poses significant risks, as highlighted by experts like Florida Rep. Christine Hunschofsky. Although the law does not mandate disclosure of past flood damage if no claims were made, it emphasizes that homeowners insurance typically does not cover flood damage, prompting sellers to inform buyers accordingly. Real estate professionals, including brokers and insurance agents, support the law as a way to protect buyers and encourage them to consider additional flood coverage. However, concerns have been raised that this disclosure requirement may negatively impact property values, as sellers may worry about reduced marketability. Florida joins a growing number of states mandating such disclosures, which could help save homeowners from unforeseen repair costs associated with flooding.