Florida's Expanded Flood Disclosure Law Takes Effect, Plus the NFIP Lapse: What Sellers and Landlords Need to Know
Two things happened on October 1, 2025 that matter to anyone selling, buying or renting out a home in Manatee and Sarasota counties. Florida's expanded flood disclosure law took effect. And the National Flood Insurance Program's authority lapsed when the federal government shut down. Add the Federal Reserve's rate cut in mid-September, and it's a busy fall. Here's what you need to know.
Florida's Expanded Flood Disclosure for Home Sales
Florida first required a flood disclosure for residential sales in 2024. This year the Legislature expanded it. Under chapter 2025-166, Laws of Florida, effective October 1, a seller of residential property must give the buyer a flood disclosure at or before the time the sales contract is signed. The form must state whether the seller:
Has knowledge of any flooding that damaged the property during the seller's ownership. This is new. It covers damaging flooding even if no claim was filed.
Has filed a flood-damage claim with an insurance provider, including the National Flood Insurance Program.
Has received assistance for flood damage, including from FEMA. The old form referred to federal assistance. Now any assistance counts.
The form also explains that homeowners insurance policies don't cover flood damage, and it defines "flooding" to include overflow of inland or tidal waters, rapid runoff accumulation, and sustained standing water from rainfall. As Florida Realtors' legal team explains, Florida sellers were already required to disclose known facts that materially affect value and aren't readily observable. The new form spells out flood history specifically.
What This Means for Sellers
After Helene and Milton, some homes in our area had flood exposure, even if the water was brief or the damage was repaired. My advice:
Fill out the form yourself, honestly and completely. Your agent can point you to the form, but the information has to come from you.
Gather your records: claim numbers, adjuster reports, repair invoices, permits, and any FEMA or other assistance paperwork.
Tell the story with documentation. "Yes, we had water in 2024. Here's who repaired it, the permits and the photos" is far stronger than a buyer discovering it on their own.
Plan for questions about flood insurance. Buyers will be pricing coverage. An elevation certificate, if you have one, can be very helpful.
What This Means for Buyers
The disclosure is a starting point, not the whole story. Pair it with a thorough inspection, a look at the property's flood zone and elevation, and a flood insurance quote, even if the home isn't in a high-risk zone and your lender doesn't require one. Ask follow-up questions about any "yes" answers.
Landlords: A New Rental Flood Disclosure
The same law created a new disclosure for rentals. Landlords must provide a flood disclosure at or before signing a lease of one year or longer, covering the same three points. It must be a separate document, not buried in the lease. According to Florida Realtors, if a landlord doesn't provide it and the tenant suffers substantial loss or damage from flooding, the tenant may terminate the lease and the landlord must refund advance rent. If you own rentals in Bradenton, Palmetto or Sarasota, update your lease packet now.
The NFIP Lapse: What It Means for Closings
With the government shutdown that began October 1, the NFIP's authority to write new policies lapsed. Here's what's been reported by Independent Agent (IA) magazine and outlined in a Congressional Research Service brief:
Existing policies remain in force until they expire, and FEMA can continue paying valid claims with funds on hand.
New NFIP policies can't be issued during the lapse. Renewals are limited to those applied for before September 30 with the premium paid within the 30-day grace period.
That can affect home purchases that need flood insurance to close. Private flood insurance may be an option, and the federal purchase requirement is suspended during a lapse, so lenders decide whether coverage is needed.
If you're under contract on a home that will need flood coverage, call your lender and insurance agent today. Ask whether private flood coverage is available and acceptable, and whether your timeline needs adjusting.
Rates Eased After the Fed's September Cut
On September 17, the Federal Reserve cut its benchmark rate by a quarter point to a range of 4.00%–4.25%, its first cut of 2025. Freddie Mac's Primary Mortgage Market Survey showed the 30-year fixed at 6.26% on September 18, the lowest in about a year, and 6.34% for the week of October 2. Payments are noticeably better than earlier this year. Just be sure flood and homeowners insurance are part of your budget from the start.
Let's Make Your Sale or Purchase Smooth
Disclosure rules and insurance questions are part of buying and selling on Florida's Gulf Coast. Handled early, they don't have to derail anything. If you're selling, buying or leasing a property in Manatee or Sarasota and want help, call or text me at (941) 993-8311 or reach out through my contact page.
Luis Odon, REALTOR® Keller Williams Coastal Living II (941) 993-8311
This article is general information only and is not legal, insurance or financial advice. Consult a Florida real estate attorney and a licensed insurance agent about your specific situation. Equal Housing Opportunity.
