New York adopts flood insurance disclosure requirements

New York Gov. Kathy Hochul signed legislation requiring the disclosure of information concerning flood insurance on property condition disclosure statements.

The new law, AB 1967, adds the following questions to the property condition disclosure statements:

• Is any or all of the property located in a Federal Emergency Management Agency (FEMA) designated floodplain?
• Is any or all of the property located wholly or partially in the special flood hazard area (SFHA: 100-year floodplain) according to FEMA’s current flood insurance rate maps for your area?
• Is any or all of the property located wholly or partially in a moderate risk flood hazard area (500-year floodplain) according to FEMA’s current flood insurance rate maps for your area?
• Is the property subject to any requirement under federal law to obtain and maintain flood insurance on the property? Homes in the special flood hazard area, also known as high-risk flood zones, on FEMA’s flood insurance rate maps with mortgages and maintain flood insurance. Even when not required, FEMA encourages homeowners in high risk, moderate risk, and low risk flood zones to purchase flood insurance that covers the structures and the personal property within the structures. Also note that homes in coastal areas may be subject to increased risk of flooding over time due to the projected sea level rise and increased extreme storms caused by climate change which may not be reflected in current flood insurance rate maps.
• Have you ever received assistance, or are you aware of any previous owners receiving assistance, from FEMA, the U.S. Small Business Administration (SBA), or any other federal disaster flood assistance for flood damage to the property? For properties that have received federal disaster assistance, the requirement to obtain flood insurance passes down to all future owners. Failure to obtain and maintain flood insurance can result in an individual being ineligible for future assistance.
• Is there flood insurance on the property? A standard homeowner’s insurance policy typically does not cover flood damage. You are encouraged to examine your policy to determine whether you are covered.
• Is there a FEMA elevation certificate available for the property? An elevation certificate is a FEMA form, completed by a licensed surveyor or engineer. The form provides critical information about the flood risk of the property and is used by flood insurance providers under the National Flood Insurance Program (NFIP) to help determine the appropriate flood insurance rating for the property. A buyer may be able to use the elevation certificate from a previous owner for their flood insurance policy.
• Have you ever filed a claim for flood damage to the property with any insurance provider, including the NFIP?
• Has the structure experienced any water penetration or damage due to seepage or a natural flood event, such as from heavy rainfall, coastal storm surge, tidal inundation or river overflow?

The bill also states, “Nothing contained in this article shall be construed as limiting any existing legal cause of action or remedy at law, in statute or in equity.”