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.
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 |
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.
Two addendum examples can be found here.
Because FEMA views addresses as personally protected information, only the property owner can request this information through calling (877) 336-2627.
It requires a little more research! A few ideas include:
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.
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.
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