Blog Layout

Navigating Flood History Information Beyond the Seller's Disclosure

Louisiana REALTORS • April 8, 2021

Louisiana REALTORS® has partnered with the FEMA outreach and DOTD education teams to provide REALTORS® with helpful information regarding flood insurance, disaster preparation and recovery through our monthly Flood Risk & Recovery Series. In April, FEMA and DOTD were joined by representatives from Baker Donelson to discuss Flood Risk & Flood Insurance Implications in the Louisiana Seller's Disclosure and how that relates to the Obtain & Maintain requirement. Please see below for a few highlights and FAQs that were addressed in the session.

Session Highlights:

  • FEMA estimates that over 150,000 households in Louisiana require flood insurance
  • The Obtain & Maintain requirement says that if a property owner receives federal financial assistance for a flood loss and the property is in a Special Flood Hazard Area, then the owner must obtain flood insurance (equal to the amount of FEMA Individual Assistance award) for the property, and insurance must be maintained regardless of change in ownership
  • A seller MUST notify a buyer of the requirements to Obtain & Maintain on or before the date of property transfer
  • Failure to notify could mean that the buyer may be ineligible to receive future assistance AND/OR that the seller could be responsible for reimbursing the Federal Government for any disaster assistance received by the buyer
  • Even though it may not be required in the purchase agreement, the seller is still responsible for notifying of the Obtain & Maintain requirement through an addendum and in the active sale

Tips to Guide & Protect Your Clients:

BUYERS SELLERS
Get flood insurance, no matter what zone your desired home is in If receiving a subsidized rate, transfer it to the buyer at closing
Do your own research: contact your floodplain administrator, review the home's title/deed for FEMA mitigation grants, review the disclosure and ask the local community Consider mitigation projects that will reduce the flood risk, and in turn, reduce the premium before putting a property on the market
Request the seller's Elevation Certificate Provide an Elevation Certificate
Inquire with seller about previous flooding and require a flood loss history from the seller Disclose flood history and flood risk information
Know the waiting period before the policy will take effect, and see if the seller's policy can be transferred to you

FAQs:

  • Where can I find flood maps?

    You can go to msc.fema.gov to find all the maps; viewing them in the National Flood Hazard Layer Viewer is also helpful. If you need help interpreting the maps, you can call (877) 336-2627 for assistance.

  • Where can I find a sample addendum to include with my Seller's Disclosure?

    Two addendum examples can be found here.

  • How can I request a property's NFIP Flood Loss History?

    Because FEMA views addresses as personally protected information, only the property owner can request this information through calling (877) 336-2627.

  • If I am representing a buyer, how can I obtain flood history information?

    It requires a little more research! A few ideas include:

    • Contacting your floodplain administrator to ask about a flood zone, flood history in the area, permits on the structure and any community grants that were applied for
    • Reviewing the home's title/deed, as FEMA mitigation grants are required to be included
    • Ask the local community
    • Request the seller's Elevation Certificate
    • Inquire with the seller about previous flooding and require a flood loss history from the seller
  • Does the Obtain & Maintain requirement only apply if the home flooded and received money from FEMA?

    It applies to other types of federal disaster assistance in the high-risk flood area as well. This includes things like SBA loans, HUD grants, etc.

  • If a property is in Zone X and received FEMA assistance after flooding, does the Obtain & Maintain requirement still apply?

    The Obtain & Maintain requirement for FEMA disaster assistance only applies in the high-risk flood area. Flood insurance is recommended in this area though because almost 40% of NFIP claims come from this area.

Watch the Full Recording & View Session Materials
Louisiana Real Estate Legislation Advocacy: How REALTORS® Can Make a Difference

Louisiana Real Estate Legislation Advocacy: How REALTORS® Can Make a Difference

By Louisiana REALTORS® • March 17, 2025
Discover how REALTORS® play a key role in legislative advocacy, ensuring that real estate rules and regulations protect brokers, clients, and the market. Learn about the benefits and opportunities they provide.
A REALTOR®’s Guide to Client Success Through Advocacy

A REALTOR®’s Guide to Client Success Through Advocacy

By Louisiana REALTORS® • March 10, 2025
REALTORS® are entrusted with a significant responsibility: to guide clients through one of life's most significant transactions—the purchase or sale of a home.

Consumer Guide Update: Seller Disclosures

By Louisiana REALTORS® • March 7, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on seller disclosures. This guide covers the basics of what home characteristics sellers are required to disclose to help potential buyers make informed decisions and protect sellers from legal liability. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Seller Disclosures Property Taxes Preparing for Homeownership Escrow and Earnest Money Pricing Your Home Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover tactics for marketing your home.
Show More
Share by: