Gov. signs law to improve transparency for homeowners

Gov. Josh Shapiro signed House Bill 1704 into law to help Pennsylvania's homeowners understand potential flood risk during the home-buying process and protect against catastrophic loss.

The new law strengthens homeowner's seller disclosures to inform buyers about flood risk and directs consumers to the Pennsylvania Insurance Department (PID) website to find important information about flood-related risk factors, flood mitigation and flood insurance. This legislation, which was sponsored by Rep. Perry Warren, D-Bucks, implements a key recommendation of the Pennsylvania Flood Insurance Premium Assistance Task Force, which provided recommendations to Governor Shapiro in 2024.

Standard homeowners' insurance policies generally do not cover flood damage. About one percent of Pennsylvania households currently carry flood insurance.

"We can't say it enough – where it rains, it can flood. All consumers, even those not living in high-risk areas, should consider purchasing flood insurance, and the perfect time to considering doing so is when buying a new home." said Pennsylvania Insurance Commissioner Michael Humphreys. "This legislation will require an important and timely reminder to homebuyers and direct them to resources and tools that will help them evaluate flood risk and the next steps they can take to secure their property and protect their families. We are grateful to Governor Shapiro and the legislature for their ongoing commitment to the mission of the task force."

The Flood Insurance Premium Assistance Task Force Final Report identified four areas for action: affordability, risk mitigation, incentives, and education and outreach. Along with a recommendation to improve disclosures during the home-buying process, which is implemented by HB 1704, the report included recommendations to improve flood education, expand access to insurance, strengthen mitigation efforts, and increase flood insurance participation. Since 2024:

PID established a Flood Insurance Ombudsman to serve as a primary point of contact for coordinating flood insurance education and outreach with FEMA, PEMA, and other stakeholders. The Ombudsman is also tasked with helping develop innovative solutions to increase access to flood insurance.

Pennsylvania strengthened flood insurance training for insurance professionals under Act 142 of 2024. This law ensures insurance agents and brokers who sell property and casualty insurance concentrate at least two of their 24 required continuing education hours on flood insurance.

PID expanded consumer education and outreach and made flood information easier to find. PID enhanced its outreach and education efforts during Flood Awareness Weeks and throughout the year to remind residents that flood damage is not covered by most homeowners' or renters' insurance, partnering with local governments and emergency management agencies to share resources, promote mitigation efforts, and highlight available insurance options. Resources are easily accessible on PID's Flood Insurance web page.

PID also kept Pennsylvanians informed about coverage options during the NFIP lapse. When the National Flood Insurance Program temporarily lapsed, PID reminded consumers that private flood insurance remained an option and provided information to help homeowners, buyers, and lenders understand their choices.

Although the legislation will not require the amended sellers' disclosure until July 2028, information on flood insurance is available at PID's one-stop flood insurance webpage, which includes a link to a personalized interactive tool designed to help consumers determine their flood risk.

PID urges Pennsylvanians who have insurance questions, or who wish to file a complaint, to visit pa.gov/consumer or call 1-866-PA-COMPLAINT (1-866-722-6675).

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