Flood Disclosure Fix Shows Progress
Bills to fix a glitch in last year’s flood disclosure requirement have moved out of their first committees in the House and Senate, respectively. The legislature adopted a requirement last year for homeowners’ insurers to include a disclosure on their policies stating that the policies do not cover flood. However, the bill did not contain an exception for homeowners’ policies that include flood coverage either in the base policy or through an endorsement. In these situations, current law puts insurers in a position of either not strictly complying with the statute or complying in a manner that is confusing to policyholders.
The proposal making its way through the 2019 legislature will specify that the disclosure is required only on policies that do not include flood coverage.