Buying a house is usually one of the biggest purchases you’ll make, which means it’s vital for homebuyers to research the property carefully and be aware of any major risks, including flood risks. Because of this, many states have flood risk disclosure laws designed to protect homebuyers from taking on more risk than they anticipated when purchasing a new home.
Since traditional home insurance policies don’t cover flooding, knowing a home’s flood risk can help you determine if you’ll need to buy a flood insurance policy on top of your regular home insurance policy.
What are flood risk disclosure laws?
Flood risk disclosure laws are state laws that determine how much (if anything) someone selling a home or other property must disclose to the buyer regarding the risk of flooding, flood insurance requirements, flood history of the property, and any prior damage caused by flooding. Some states have robust flood disclosure laws designed to protect the buyer, but other states have minimal laws regarding flood risk disclosure, or worse, no flood risk disclosure laws at all.
Flood risk disclosure laws give homebuyers valuable information when choosing whether or not to purchase a home, as well as giving them an honest understanding of their flood insurance needs if they decide to purchase the property.
What is the full disclosure rule?
When it comes to real estate, the full disclosure rule requires both the broker and the seller to be honest and upfront about any substantial issues before a sale is finalized. If either the buyer or seller fails to disclose any significant information, they could be charged with perjury, so it is vital to be up front and honest with the other party.
But what is considered important to disclose differs between each state’s flood risk disclosure laws. Depending on where you live, a seller may or may not be legally required to disclose the flood history of a property before a sale. That’s why it’s important to stay up-to-date with your state’s flood risk disclosure laws and flood statistics before buying a home.
Flood maps and flood risk disclosure laws
Federal Emergency Management Agency (FEMA) flood maps provide information about flood zones and affect flood insurance rates, but there are limits to how helpful they can be regarding flood risk disclosure laws.
While flood maps will tell you the likelihood of flooding in a given area, they won’t tell you whether or not a particular property has flooded in the past. Also, flood zones are not necessarily updated every year, and not every flood happens in a high-risk flood zone, so buyers can’t depend on flood maps to provide perfect data regarding flood risks.
Flood risk disclosure laws by state
The National Resources Defense Council (NRDC) rates flood risk disclosure laws by state. States with an A rating have detailed disclosure laws designed to protect buyers, while states with less-specific and detailed laws earn lower ratings. States with no disclosure laws at all are rated F according to the NRDC.
Flood risk disclosure laws vary from one state to the next, and some state laws have changed significantly in the last year. For example, South Carolina has improved their flood disclosure laws over the years, moving from a D rating with the NRDC in 2018 to an A rating in 2023 due to efforts taken by conservation groups and the state’s Real Estate Commission.
The chart below shows the NRDC flood risk disclosure laws rating for all 50 states in 2023:
NRDC flood risk disclosure laws rating | States |
|---|---|
A - Best | Louisiana, Mississippi, New Jersey, New York, Oklahoma, South Carolina, Texas |
B - Better | Tennessee |
C - Adequate | Alaska, California, Colorado, Delaware, Illinois, Indiana, Iowa, Kentucky, Michigan, Nebraska, Nevada, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Washington |
D - Inadequate | Connecticut, Hawaii, Maryland, Minnesota, North Carolina, Rhode Island, Wisconsin |
F - No regulations | Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Kansas, Maine, Massachusetts, Missouri, Montana, New Hampshire, New Mexico, Utah, Vermont, Virginia, West Virginia, Wyoming |
North Carolina flood disclosure laws are currently rated D (inadequate), but are under review, so their score may change in the next year.
FEMA requirements
There are no federal statutes or mandates requiring sellers to disclose flood risk and history of flooding. Because there are no specific flood disclosure requirements set by FEMA, sellers must adhere to state laws and regulations.
How to protect yourself in states without flood risk laws
There are several ways for home buyers to protect themselves from flood risks:
Do your research: Ask detailed questions, use tools like FEMA flood maps and NOAA’s Sea Level Rise Viewer to figure out the likelihood of flooding, and check real estate website listings to find out the history of the property before buying.
Work with your agent: Real estate agents have access to a variety of resources that can give you more information about a property. Depending on the tools available in your state, your real estate agent may have access to court documents, historical documents, FEMA flood maps, and other helpful information that can let you know if a property has been or is likely to be damaged in a flood.
Get a C.L.U.E. report: A Comprehensive Loss Underwriting Exchange (C.L.U.E.) report tells you every claim filed on a property in the last seven years. Getting a C.L.U.E. report can tell you if a claim was filed for flood damage on a home before you buy it.
Buy flood insurance: Flood insurance is a good idea, even if you don’t live in a high=risk flood zone. Flood insurance can help protect you financially from flood damage, which is not covered by your homeowners insurance.
Learn more >> 5 easy steps to buying flood insurance
Frequently asked questions
What states have no flood risk disclosure laws?
According to the NRDC, Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Kansas, Maine, Massachusetts, Missouri, Montana, New Hampshire, New Mexico, Utah, Vermont, Virginia, West Virginia, and Wyoming do not require a seller to provide a real estate disclosure of flood risk.
What is flooded disclosure?
Flooded disclosure is another way of describing flood risk disclosure laws. More common in New York than in other states, the term flooded disclosure appears to be used interchangeably with flood disclosure and flood risk disclosure.
Can a home inspection assess flood damage?
A home inspection can assess some signs of flood, water, or mold damage by looking at the structuring of walls, roofs, floors, and the type of material used for the construction of the house.
