Pennsylvania Enacts New Flood Risk Disclosure Requirements
Pennsylvania Governor Josh Shapiro has signed House Bill 1704 into law, establishing new flood risk disclosure mandates for property sellers starting in July 2028. Under the legislation, sellers must reveal previous flood damage, location in 100- or 500-year FEMA flood hazard zones, flood insurance history or requirements, past flood-related government aid, and prior flood insurance claims. Currently, standard homeowners policies typically exclude flood coverage, and state data shows only around one percent of Pennsylvania households hold flood insurance.
The legislation enacts a primary recommendation from the 2024 Flood Insurance Premium Assistance Task Force Final Report, which advocated for enhanced disclosures, expanded insurance access, stronger mitigation, and increased policy participation. To support consumer education, the law directs buyers to the Pennsylvania Insurance Department website, which features a flood risk tool and coverage resources. State Insurance Commissioner Michael Humphreys noted that purchasing a new home presents an ideal opportunity for buyers to evaluate flood insurance.
The regulatory changes also directly affect the state's property and casualty insurance workforce. Insurance agents and brokers must now dedicate at least two of their 24 mandatory continuing education hours specifically to flood insurance. Additionally, since 2024, the state insurance department has operated a flood insurance ombudsman to coordinate outreach with emergency management agencies and develop strategies to boost flood coverage access.
For property and casualty insurers and producers operating in Pennsylvania, these statutory shifts signal a push toward higher flood risk awareness that could increase demand for standalone flood coverage while tightening agent compliance standards.
Why it matters
The new law imposes mandatory flood training for property and casualty agents while potentially driving increased market demand for flood insurance products in Pennsylvania.
FAQ
When do the new home seller disclosure requirements take effect in Pennsylvania?
The disclosure requirements for home sellers begin in July 2028 under House Bill 1704.
What new continuing education requirements apply to Pennsylvania insurance agents?
Property and casualty agents and brokers must allocate at least two of their 24 mandatory continuing education hours to flood insurance.
What percentage of Pennsylvania households currently hold flood insurance?
According to the state, approximately one percent of Pennsylvania households currently carry flood insurance.
Source: Insurance Journal. See the original source for full details.
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