New Florida Law Mandates Flood History Disclosure for Home Sellers
Treasure Coast, FL – Homebuyers on Florida’s picturesque Treasure Coast have long been enchanted by the promise of sun, sand, and sea. Yet, amid the allure of beachside living lies a lesser-known challenge that can turn a dream home into a nightmare: flooding. Now, a new law is reshaping the way real estate transactions are conducted, ensuring that buyers are armed with crucial information before they commit to a purchase.
As of October 1, 2024, Florida mandates that all home sellers disclose any history of flood damage or claims on their property to potential buyers. This landmark move introduces a level of transparency previously unseen in the state’s real estate market.

Flood Insurance: The Unspoken Necessity
Florida’s real estate landscape is marked not just by its stunning views but also by the ever-present risk of flooding. It’s not just hurricanes or coastal storms that lead to flooding—heavy rains and inadequate drainage can wreak havoc even in areas far from the coast. While many assume flood risks are limited to beachfront properties, the reality is that most of the Treasure Coast, from Stuart to Palm City, falls within designated flood zones.
“Most properties here on the Treasure Coast are in some form of flood zone,” notes Maria Wells, a real estate expert based in the region. “Even the so-called ‘X’ zones, labeled as low-risk, are still flood zones.”
This widespread risk has made flood insurance an essential consideration for Florida homeowners. In fact, properties insured through the state-owned Citizens Insurance must carry flood insurance, regardless of whether they are located in a high-risk zone or not. This applies even if the home is fully paid off, underscoring the significance of flood protection.

A New Era of Transparency
The new disclosure law is a game changer for homebuyers, offering a safety net that was previously missing from property transactions. Before this law, a home’s flood history could remain concealed unless voluntarily disclosed by the seller. Now, sellers are legally required to provide information on:

Insurance claims for flood damage: Sellers must reveal whether they have ever filed flood-related insurance claims.

Federal assistance received: Any federal aid obtained for flood damage must also be disclosed to potential buyers.
“This new law empowers buyers with the knowledge they need to make informed decisions,” Wells adds. “No longer will they be blindsided by a home’s hidden flood history after the deal is done.”

What Counts as Flooding? It’s Not Just Storms
Flooding isn’t limited to dramatic hurricanes or tropical storms. It includes:
Overflow from rivers and tidal sources
Rapid surface water accumulation during heavy rains
Standing water due to poor drainage
Many buyers unfamiliar with Florida’s unique landscape may not realize that flood risk can extend well beyond the coastline. Seasonal flooding, which may only appear during the wet season, can surprise new homeowners who purchase during the dry months.
A homebuyer’s worst nightmare is discovering that their newly purchased property transforms into a waterlogged mess after just one heavy storm. The new law helps prevent such unwelcome surprises by making flood history a mandatory part of real estate disclosures.

The FEMA Factor
To underscore the importance of this new requirement, it’s essential to look at data from the Federal Emergency Management Agency (FEMA). The agency classifies properties that experience repeated flooding as “severe repetitive loss properties.” These homes have typically flooded at least twice with damages equal to or exceeding the property’s value or four times with damage of at least $5,000 per incident.
Nationwide, approximately 45,000 homes fit this description. Of these, an estimated 3,100 properties are located in Florida. Until now, FEMA only shared flood history details with current property owners who held active flood insurance policies. For potential buyers, this crucial information was often inaccessible unless voluntarily disclosed by the seller.

Implications for Sellers
While some sellers may be wary of how disclosing flood history might affect their property’s marketability, the law benefits them as well. Transparency reduces the likelihood of post-sale legal issues and fosters trust between buyer and seller. “Honesty is the best policy,” says Wells. “Sellers need to recognize that disclosing flood history now can prevent major legal headaches later.”

Buyers, Take Note: Homeowners Insurance Isn’t Enough
Many homebuyers mistakenly believe that standard homeowners insurance policies cover flood damage. However, flood damage is typically excluded from basic coverage, leaving homeowners vulnerable. In Florida, particularly along the Treasure Coast, having a separate flood insurance policy isn’t just advisable—it’s practically mandatory.
Buyers should engage with knowledgeable real estate professionals who can provide guidance on flood zones, insurance requirements, and the potential risks associated with their chosen property.

For those looking to buy or sell on the Treasure Coast, understanding and navigating flood risk has never been more critical. The new law gives buyers the tools they need to make well-informed decisions, turning what could be a gamble into a calculated, safer investment.