Do I Have to Disclose Flood Damage or Prior Insurance Claims in Florida?

Yes. Florida sellers are required to disclose known material defects — and prior flood damage is a material defect that must be disclosed. Prior insurance claims are also subject to disclosure requirements. Failing to disclose can expose you to significant legal liability after closing.

This post is for general informational purposes only and does not constitute legal advice.

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Flood Damage Disclosure

Under Florida's disclosure law, sellers must disclose facts that materially affect the value of the property, are not readily observable by the buyer, and are known to the seller. Prior flood damage clearly meets this standard.

What must be disclosed:

• Any prior flooding of the property, including flooding from hurricanes, storm surge, heavy rain, or any other cause
• Any prior flood damage to the structure, systems, or contents
• Any prior flood insurance claims
• Any prior FEMA flood assistance received for the property
• Whether the property has ever been designated as a Repetitive Loss or Severe Repetitive Loss property by FEMA

The repair does not eliminate the disclosure obligation. If you repaired flood damage, you must still disclose that the damage occurred. The buyer has a right to know the property's history, even if the damage has been remediated.

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Florida's Flood Disclosure Law (Effective 2024)

Florida enacted a specific flood disclosure law (effective January 1, 2024) that requires sellers to complete a flood disclosure form. The form asks:

• Whether the property has experienced flooding or flood damage
• Whether the seller has filed a flood insurance claim
• Whether the seller has received federal disaster assistance for flood damage
• Whether the property is in a Special Flood Hazard Area (SFHA)
• Whether the property has flood insurance

This is a separate disclosure from the general seller's property disclosure form and is required for all residential real estate transactions in Florida.

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Prior Insurance Claims

Prior insurance claims — not just flood claims — are relevant to buyers because:

• They may indicate prior damage that could recur
• They affect the property's insurance history (available through the CLUE report)
• They may affect the buyer's ability to obtain insurance or the premium they will pay

Buyers can request a CLUE (Comprehensive Loss Underwriting Exchange) report, which shows the property's insurance claim history for the past 7 years. Sellers should be aware that this information is available to buyers.

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Consequences of Non-Disclosure

Failing to disclose prior flood damage or insurance claims can result in:

• The buyer rescinding the contract and recovering their earnest money
• A lawsuit for damages after closing, including the cost of repairs and diminution in value
• Potential fraud claims

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FAQ

Do I have to disclose flood damage that was fully repaired?

Yes. The disclosure obligation is based on your knowledge of what happened, not the current condition of the property. If the property flooded and you repaired the damage, you must disclose both the flooding and the repairs.

What is a CLUE report and can buyers access it?

A CLUE (Comprehensive Loss Underwriting Exchange) report shows the property's insurance claim history for the past 7 years. Buyers can request a CLUE report from the seller or obtain one through their insurance agent.

Does the flood disclosure requirement apply to condos?

Yes. The Florida flood disclosure law applies to all residential real estate transactions, including condos.

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Questions about your flood disclosure obligations for your Emerald Coast property? I can walk you through the requirements and connect you with a real estate attorney if needed.

— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849