Pennsylvania Law Addresses Flood Risk Disclosure by Home Sellers

Pennsylvania Governor Josh Shapiro this week signed legislation meant to improve homeowners’ understanding of potential flood risk during the home-buying process. The new law (House Bill 1704) will require sellers to inform buyers about their home’s flood risk. Under the legislation, starting in July 2028, home sellers will be required to disclose: Whether the property has previously experienced flood damage. Whether the property is in a FEMA-designated flood hazard area (100- or 500-year flood zones). Whether flood insurance is required or has been carried on the property. Whether the seller has received government assistance for flood damage. Whether the seller has filed a flood insurance claim. In addition, the law directs consumers to the Pennsylvania Insurance Department (PID) website with information on flood zones, insurance coverage options, and mitigation strategies. PID has made flood information easier to find on its flood insurance web page, which includes a link to a personalized interactive tool designed to help consumers determine their flood risk Standard homeowners’ insurance policies generally do not cover flood damage. About one percent of Pennsylvania households currently carry flood insurance, according to the state. This legislation, which was sponsored by Rep. Perry Warren, D-Bucks, implements a key recommendation of the Flood Insurance Premium Assistance Task Force Final Report. That 2024 report identified four areas for action: affordability, risk mitigation, incentives, and education and outreach. Along with a recommendation to improve disclosures during the home-buying process, the report included recommendations to improve flood education, expand access to insurance, strengthen mitigation efforts, and increase flood insurance participation. “We can’t say it enough – where it rains, it can flood. All consumers, even those not living in high-risk areas, should consider purchasing flood insurance, and the perfect time to considering doing so is when buying a new home.” said Pennsylvania Insurance Commissioner Michael Humphreys. Since 2024, PID has established a flood insurance ombudsman to serve as a primary point of contact for coordinating flood insurance education and outreach with the Federal Emergency Management Agency (FEMA), state emergency management agencies, and other stakeholders. The ombudsman is also in charge of helping to develop ideas to increase access to flood insurance. Pennsylvania has also strengthened flood insurance training for insurance professionals. This law ensures insurance agents and brokers who sell property/casualty insurance concentrate at least two of their 24 required continuing education hours on flood insurance. . Topics Flood Pennsylvania