Lawmakers in states across the U.S. have begun requiring home sellers and landlords to disclose flood risks to potential buyers and renters. North Carolina, South Carolina, New York, and New Jersey were among the states that passed stronger flood disclosure policies in 2023. Several bills have also been introduced in Vermont that would require home sellers, landlords, and manufactured home park owners to communicate flood risk and flood history to prospective homebuyers and renters.
A state-by-state analysis by the Natural Resource Defense Council and Columbia Law School in 2023 showed that more than one-third of states have no statutory or regulatory flood disclosure law for real estate transactions. Other states have varying degrees of disclosure requirements. Louisiana, Texas, Oklahoma, and Mississippi have some of the most robust disclosure laws in the nation. However, many other at-risk states, including Florida, still do not require sellers to divulge to buyers whether a home has previously flooded.
In a 2022 analysis, FEMA found that states with stronger disclosure requirements often have higher rates of residents with flood insurance policies. The NRDC’s analysis shows that the number of states with strong flood disclosure policies has jumped to eight from four since 2021. However, the NRDC says that the lack of continuity hinders buyers from making fully informed decisions and advocates for states to enact stronger laws.