As of October 1, 2024, a new law has been in effect for Florida homeowners. This law will effect anyone who want to sell their homes. Florida Senate passed HB-1049: Flood Disclosure in the Sale of Real Property. This law defines what flooding is and when a flood disclosure is needed. Previously, home owners were not required to disclose. They did not need to inform new or potential buyers if their home was in a flood.
An overwhelming amount of people moved to Florida to buy homes. They discovered they were not qualified for insurance due to the history of the home. Florida insurance companies deny coverage when a home has been flooded three times. Many of these new homeowners closed on their new home. Later, they found out that no insurance carrier would cover their home.
The New Law
HB-1049 requires a flood disclosure under any of these two circumstances:
- “Seller has… has not filed a claim with an insurance provider relating to flood damage on property, including, but not limited to, a claim with the National Flood Insurance Program.”
- “Seller has… has not… received federal assistance for flood damage to the property, including, but not limited to, assistance from the Federal Emergency Management Agency.”
The law continues by defining the term flood:
- “The overflow of inland or tidal waters.”
- “The unusual and rapid accumulation of runoff or surface waters from any established water source, such as a river, stream, or drainage ditch”
- “Sustained periods of standing water resulting from rainfall.”
To view this new law Click Here.
My Thoughts
Although this law is great news for new home buyers. I think this will hurt home owners who have already purchased these homes. Flooded homes will either become difficult to sell, or cause some of these new home owners to take a loss. No one will want to pay full market value for a home that cannot be insured. In some cases where damage has already occurred, it would only be sensible for only land value to be paid.
In order for any of these homes to become insurable again, they would need to be torn down. Owners would then need to put a new home on the property.
If you or someone you know has a home that you are having trouble selling. Schedule your zero obligation consultation. Let’s see if it makes sense for us to purchase your property or land from you.
