Although many states require home disclosures to include details about previous damage caused by flooding or hurricanes, the state most at risk for sea-level rise related flooding, Florida, does not require home sellers to disclose this information.

Additionally, Florida homeowners may expect their homeowners’ insurance to cover all types of damage to their homes, including damage caused by floods and hurricanes. However, according to homeowners, many insurers deny their claims and refuse to cover damages related to flooding.

Florida Homeowners May Not Be Aware of Flood Risks

Heather F. says she purchased her house in Boynton Beach, Fla. in 2015, after being reassured by the sellers and realtor that there was no history of severe flooding associated with the property. However, soon after purchasing the home, Heather reports that she began to wonder if the sellers had been entirely truthful. Floodwater would pool in the street and the yard, and come up to her front door.

In 2017, floodwaters related to Hurricane Irma entered her house and caused severe damage. Heather says that when she filed a claim with her insurance company, she received an insurance payout of more than $100,000, or over half the value of her house. However, soon after Heather received the payout, she reportedly received a letter from her insurance company informing her that this flood was the fourth reported flood associated with her home that had caused more than $5,000 in damage.

Due to the repeated flooding, Heather’s home had been moved into an insurance category called “severe repetitive loss.” Although repetitive loss properties result for just around one percent of properties with flood insurance, these properties are attached to between 25 and 30 percent of flood claims.

Heather told the Tampa Bay Times that making improvements to reduce the likelihood of future flooding to the home would cost her almost the same amount she had paid for the house in the first place. According to Heather, “I never would have bought this house if I knew it had the flood history it had. I probably wouldn’t have bought it if I knew it had one flood.” But that information was never disclosed to her.

Although Florida laws indicate that home sellers must disclose any information about a property that may have a substantial impact on the property’s value, it is unclear whether flooding is covered under this law. According to consumers, the state should clarify this law and require home sellers to disclose flood information before selling their house.

Additionally, many insurance companies that insure homeowners who own property in areas at high risk of flooding may be reluctant to pay out the full amount that policyholders are owed.  Costs are impactful to insurance companies – Hurricane Florence had $600 million in insurance payouts in North Carolina alone.

Many consumers claim that their insurers have denied or delayed their claims, or have given them low offers. Hiring an experienced attorney to represent you and assist with the claims process may make it more likely for you to receive a larger insurance payout. Florida homeowners who have suffered property damage including water damage, storm damage, hurricane damage, cast iron pipe leaks, roof leaks, and broken water heaters may be eligible to hire an attorney to assist them with navigating the insurance process.