As Flood Plains Expand, Sellers Continue to Hide Risk from Residents

Business News/Analysis, Opinions, Policy

October 20, 2020

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by Amy Lupica (Our Daily Planet) Across the nation, 15 million residences are at high risk of flooding within the next 30 years, and most homeowners and renters aren’t aware of this risk.

Only about half of states require any kind of disclosure when it comes to flood risk and those that do offer information do so in confusing ways.
Flooding is one of the most deadly and destructive natural disasters and as floods and powerful storms increase due to climate change, it’s more important than ever that people understand the potential risks their properties face.

Why This Matters: The remnants of flooding, and the financial or physical inability to repair the damage, can impact people’s health, financial stability, access to education, and access to clean water. The lack of transparency by sellers, landlords, and governments puts lives in jeopardy, and like all impacts of climate change, low-income communities and people of color are especially affected.

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A Government Shortfall: So far 21 states have no law requiring disclosure of flood risk even if the home has flooded in the past. Areas at risk of flooding are growing larger and encompass more urban spaces than before.

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Freddie Mac found that homes outside of official flood plains, which weren’t required to be insured, were more likely to default on mortgages after Hurricane Harvey than homes in the official floodplain.

Currently, residents who learn that their home is in a flood plain after signing a contract are often trapped in expensive, required flood insurance plans.

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For those who rent, existing tenant protection may not cover them.

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Without comprehensive and aggressive action to fight climate change and warming ocean temperatures, no amount of warnings will be able to prevent devastating harm to the growing number of floodplain residents. READ MORE

Fannie and Freddie Mortgages Vastly Underestimate Flooding Risks (Our Daily Planet)

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