When Gary Cleveland purchased three cabins along the Brandywine Creek around the corner from his West Chester home, he didn’t buy flood insurance. The homes had lined the river since the turn of the century and survived multiple flooding events.
But during the aftermath of Hurricane Ida in 2021, as much as 8 inches of rain fell within six hours, surging sections of the Brandywine as high as 21 feet.
The rushing waters reached the roofline of Cleveland’s cabins, pushing two of them off their foundation.
He lost $150,000 for each cabin.
“I lost everything,” Cleveland said. “Flood insurance, I assumed, was too high for the risk. But it turns out I should have had flood insurance.”
Flooding in Pennsylvania has caused millions of dollars in damages to properties, shuttering businesses, forcing people out of their homes, inflicting financial and emotional trauma — and in some cases, taking lives.
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As climate change threatens to make storms more intense, flood events are predicted to increase in the region. Yet, the majority of Pennsylvania homeowners are not protected by flood insurance.
State lawmakers hope to correct that.
State Rep. Perry Warren, D-Bucks, has sponsored legislation that would require home sellers to disclose flood risk to potential buyers.
“The flooding is so localized, it can be devastating in one spot while there is no flooding 100 yards away,” Warren said. “So, we are trying to raise awareness of the possibility of flooding and the potential impact that it can have, and put people on notice that they may want to insure against the damage to the property that can be caused by a flood event.”
The proposed legislation would require sellers to disclose previous flood damage, if their property is located in a FEMA-designated flood hazard area and whether flood insurance is required. In addition, sellers would have to disclose any history of receiving flood damage assistance or filing a flood insurance claim.
The bipartisan legislation stems from recommendations from the Flood Insurance Premium Assistance Task Force, which was created to improve flood insurance access and affordability.
The task force found that fewer than 2% of insured homes in Pennsylvania are protected against flooding. High flood insurance premiums are a barrier for many residents. A lack of flood insurance can have crippling financial implications, as flood damage repairs can cost anywhere from a couple thousand dollars to $50,000.
“Standard homeowners insurance policies don’t cover flood damage. The disclosure requirement will help put prospective homebuyers on notice of the potential for flooding and flood damage, and the availability of flood insurance,” Warren said.
The legislation would also require the Pennsylvania Insurance Department to operate a website informing about flood zones, insurance options and how homeowners can protect themselves.
“As a purchaser, you really need to do your homework before you purchase anything, and as well, the seller should have the same responsibility to disclose that information,” Cleveland said.
The Pennsylvania Association of Realtors includes a number of flood risk questions to disclosure forms provided to realtors, but answering them currently is not a legal requirement.
Mark Kibbe, chair of the Pennsylvania Association of Realtors’ legislative committee, said about 80% of realty transactions utilize the association’s form. Other realtors may use disclosure forms provided by the state that are less thorough, he said.
“We certainly support full disclosure by sellers of all material defects and certainly the threat of a flood or water intrusion could very well be a material defect,” Kibbe said, adding that the association supports the legislation.
Flood insurance by far is the top issue buyers face during realty transactions, he said.
“That can be a substantial expense for buyers, significantly higher often than regular homeowners insurance,” Kibbe said. “So, buyers need to know that before they commit to purchasing a property, because they may find that if they don’t know that in advance, they can’t afford the property once they own it.”
The legislation, which has been reported out of committee, awaits a vote on the House floor. A companion bill in the Senate is expected to receive committee review later this session.
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