Flood risk is increasing across Virginia.

Informed decision-making is the cornerstone of a functional free-market system. Buyers who are aware of their risks and benefits can make more informed decisions based on their preferences, needs and budgets. 

A seller has the most knowledge about flooding impacts to a property. Even with professional assistance, like a home inspection, a buyer may not be able to determine if a home has previously flooded because home inspections only reveal defects in readily accessible and visually observable areas of a property.

Transparent disclosure of flood risks empowers Virginians to make informed decisions about their safety and financial security. This includes proactive steps like purchasing flood insurance or prioritizing home repairs.

Ensuring sellers disclose actual flood risk also enables communities to be more prepared for the next disaster and bolsters community resilience. FEMA recently found a correlation between states with strong flood risk disclosure requirements and uptake of flood insurance policies. Those with flood insurance tend to recover better and faster than those without insurance because they can rebuild more easily and quickly. This benefits the community at large because insured households typically resume normal economic activities faster, which means the local economy recovers faster too. 

When sellers disclose flood risks, they help create an environment where buyers can trust they are receiving honest and accurate information about their prospective homes. This transparency is essential for maintaining the integrity of real estate transactions and ensuring that consumers are protected.