Floods have become a reality for many coastal and low-lying areas, resulting in displacement of residents and disruption to local businesses. Climate change is expected to increase the likelihood of flooding, yet most homeowners are not aware that they may be at risk or lack flood insurance coverage. In response, advocates are pushing states to introduce new flood disclosure laws or strengthen existing ones.
The National Flood Insurance Program (NFIP) was established in the late 1960s with the goal of protecting property owners from damage caused by floods. While some states have implemented certain disclosure requirements for home sellers since then, there is no federal legislation mandating either a property’s history of flood damage or its potential risk be disclosed when selling a home. A 2022 study conducted by Milliman revealed that homeowner costs on homes without any previous flooding history were $61 while those with prior flooding had an average cost of $1,200 – highlighting how important it is for buyers to know their potential risks before purchasing a home.
A 2018 50-state analysis conducted by NRDC and Columbia Law School’s Sabin Center found 21 states had no disclosure requirements whatsoever while others had varying levels; Missouri requires sellers disclose whether there has ever been meth lab on premises but does not require information about past floods whereas Louisiana has detailed laws regarding disclosing possible risks associated with buying properties located in high-risk areas prone to frequent inundation events due natural disasters such as hurricanes etc..
Industry organizations like the National Association Federal Emergency Management Agency (FEMA) should make it easier for prospective buyers obtain accurate data about their area’s susceptibility towards floods so they can make informed decisions when looking into purchasing real estate properties as well as updating maps more frequently than currently done so people can stay up date on changes over time .
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