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ew Jersey has implemented a law requiring landlords and property sellers to disclose any flood risks upfront, effective March 20th, 2024. This mandate aims to provide buyers and renters with critical information about potential flooding hazards before making a purchase or signing a lease.
The law was introduced in September 2022 as Bill S3110/A4783 and signed into effect by Governor Phil Murphy on June 3rd, 2023. It requires property sellers and landlords to disclose any known history of flooding or risk, including whether the property is located within a FEMA Special or Moderate Risk Flood Hazard Area.
FEMA's flood mapping tool categorizes areas into three designations: Minimal Flood Hazard Area (low-risk), Moderate Flood Hazard Area (moderate-risk), and Special Flood Hazard Area (SFHA). A large majority of Hoboken, including its coastline, falls under a high-risk zone for flooding. Jersey City also has several neighborhoods shaded blue on the map, indicating a high risk of flooding.
The law means that renters should receive a Flood Risk Notice form from their landlord before signing a lease. If a landlord fails to disclose flood risks and the tenant experiences significant damage due to flooding, they can terminate their lease within 30 days. The landlord must also refund any rent paid in advance.
For buyers, flood risks are now "baked" into the real estate checklist, with sellers required to provide detailed explanations if there are any known flooding risks. Standard renters' and homeowners' insurance typically does not cover flood damage, but renters can purchase a contents coverage policy through the National Flood Insurance Program (NFIP).
Buyers should be aware that if a property has previously received federal disaster assistance, they must obtain flood insurance. Failure to do so may result in being ineligible for future assistance.
Resources are available to help individuals understand their rights and navigate the new law, including FEMA's Flood Risk Notification Tool, the official Flood Risk Notice form, and the National Flood Insurance Program (NFIP) website.
