HB 1049-Flood Disclosure In The Sale of Real Property

This Bill goes into effect October 1, 2024

Gov. Ron DeSantis has signed a bill that could impact homeowners in the Florida Keys and other flood-prone ability to sell their homes.

DeSantis signed HB 1049, which requires a flood disclosure in the sale of property in Florida.

The law, which will go into effect Oct. 1, requires residential property sellers to provide a flood disclosure to a buyer. This disclosure would have to be provided at the time of or before the contract is executed, and specific language.

The form’s title must be labeled “Flood Disclosure.” A flood insurance policy disclaimer must be provided, stating, “Flood Insurance: Homeowners’ insurance policies do not include coverage for damage resulting from floods. Buyer is encouraged to discuss the need to purchase separate flood insurance coverage with Buyer’s insurance agent,” the bill states.

The seller must state whether he or she has filed a claim with an insurance provider relating to flood damage on the property, including but not limited to a claim with the National Flood Insurance Program (NFIP).

The seller must state whether he or she has received federal assistance for flood damage to the property, including but not limited to assistance from the Federal Emergency Management Agency (FEMA).

The state Legislature approved the bill unanimously, and the Florida Realtors, the statewide lobbying association, supported the bill.

There are some loopholes. There is no requirement to disclose whether the property is in a flood zone. Also, there is no requirement to disclose a flooding event for which no insurance claim was filed, or federal assistance was received.