On Oct. 1, a new Florida law went into effect requiring a seller of residential property to disclose flood risks to a buyer.
It comes after Hurricane Helene devastated communities across the state, flooding homes and businesses in its path.
Florida Rep. Christine Hunschofsky, who sponsored the legislation, discussed it with Tom Hudson on The Florida Roundup.
She said homeowners who sell their home must now disclose if they’ve ever filed an insurance claim related to flood damage, like during Hurricane Helene or any other storm. That includes a claim with the National Flood Insurance Program.
“And I think with so many people in the state of Florida not being aware that flood insurance is not included in your homeowners insurance, I think this bill will be helping a lot of Floridians.”Florida Rep. Christine Hunschofsky
“They will only have to tell a buyer if they have filed a claim with an insurance provider and if they have received any federal assistance related to flood damage,” Hunschofsky said. “So, many people who may not have flood insurance right now and therefore can't file a claim, they will be getting federal assistance, and they'll have to disclose that.”
Federal assistance for flood damage includes aid from the Federal Emergency Management Agency.
“Also, part of the bill has a disclosure that lets people know that flood insurance is not covered by your homeowners insurance. Many people don't know that, that you have to have a separate flood insurance policy,” she clarified.
Currently, the law applies to homeowners. Hunschofsky said it would also apply to condominium owners who, for instance, have common areas flooded out.
“Since they are the owners of the condo, they would have to disclose that flooding.”
Landlords also aren’t required to disclose flood risks to tenants. Hunschofsky explained this isn’t the last time the Florida Legislature will look at this law.
“We will continue to work on this. Senator (Jennifer) Bradley and I have talked already that there are some next steps we would like to look at and see what's possible,” Hunschofsky said. Florida Sen. Bradley sponsored the Senate companion bill.
'A consumer education bill'
Hunschofsky said the purpose of the law is to ensure people buying a home know the flood risks involved.
“And I think with so many people in the state of Florida not being aware that flood insurance is not included in your homeowners insurance, I think this bill will be helping a lot of Floridians," she said.
Hunschofsky said she sees it “as a consumer protection bill and also a consumer education bill,” especially in a state prone to flooding like Florida.
“I personally think that if you're in the state of Florida, you should pretty much always assume that you have a risk of flooding,” she said.
It also comes as regions like the Gulf Coast and Florida’s Big Bend have been struck by storms in recent years.
“We are, as we've seen, unfortunately, some areas have been terribly hit three times in the last 13, 18 months, and people should just be aware of those risks, especially when they are putting such, so much of their financial worth down in purchasing a home.”
As for home prices, a Florida House of Representatives staff analysis of the measure found “property owners who are trying to sell their property may have a decrease in the market value of their property because of the required flood disclosure.” But Hunschofsky said the state hasn’t experienced lower home values.
“In fact, over the last several years, they have skyrocketed,” she noted.
This story was compiled off an interview conducted by Tom Hudson for The Florida Roundup.
