Buyer Beware: In 21 States Home Buyers Don’t Have to Be Informed About Past Flood Damages
In 21 states, home sellers are not required by law to disclose to buyers whether their potential dream home has ever flooded or whether they will be required to purchase flood insurance, according to an analysis by the
"In nearly half the states the deck is stacked against home buyers because sellers get a pass on revealing a property's flood history," said
States with the worst disclosure laws include
Twenty-nine states and
NRDC recommends greater disclosure of flood risks during real estate transactions as key to encouraging prospective homeowners to be more risk adverse when deciding where to live, and whether to take actions to minimize their risks if they do decide to purchase a flood-prone home.
However, such disclosure provisions should not be limited to disclosure requirements imposed on sellers. The National Flood Insurance Program (NFIP) must also be better about the information that is available to both home buyers and home owners. Current home owners should have a right-to-know about their property's past history of flood insurance coverage, damage claims paid, and whether there is a legal requirement to purchase flood insurance because of past owners receipt of federal disaster aid. This is information that
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