Trust This. FL Homes Must Reveal Flood Past

Trust This Newsletter

1 big thing: Flood History Must Be Disclosed in Florida

A new Florida law will require home sellers to disclose certain aspects of a property’s flood history.

Why it matters: Previously not required, flood history disclosure requirements will protect buyers and influence development decisions in a state vulnerable to rising sea levels and intense storms.

Protecting risky areas: The new law is essential to curb growth and development in areas increasingly at risk of widespread, costly flooding.

  • In 2022, Hurricane Ian led to the state’s most expensive clean-up ever.

What’s required: The new law requires that disclosures must:

  • Be at or before the time the sales contract is executed

  • Include whether the seller has ever filed an insurance claim or received federal assistance because of flood damage on the property.

  • Include specific language denoting that homeowner’s insurance policies do not include coverage for flood damage and advising the buyer to consider separate flood insurance.

Timing: The new law will take effect on October 1, 2024.

Loopholes: However, not every flooding-related detail must be disclosed under the new law. Among the information that falls outside of the requirements includes:

  • Whether a property is in a flood zone

  • A previous flood if the seller did not file an insurance claim or accept federal assistance

  • Threats in the surrounding area, such as whether a crucial access road is prone to flooding

Forward-looking flooding concerns: The law addresses some dire predictions for Florida’s flooding future. By 2045, experts estimate that $26 billion in residential real estate is at risk for chronic flooding :

  • Miami

  • Florida Keys

  • Tampa-St. Petersburg

The bottom line: Florida’s new flood history disclosure requirements offer increased protection for buyers and will likely affect development decisions in flood-prone areas. However, whether they will also affect home prices remains to be seen, and speaking of which. 

Trust This Newsletter

2. Will Florida Flood Disclosure Law Drive Down Home Prices?

The Florida law requiring home sellers to disclose a property’s flood history could steer buyers away from homes in risky areas because of increased insurance cost concerns—and drive down home prices.

Why it matters: Homeowners in areas with flooding risk and rising insurance premiums may find it increasingly difficult to sell their properties as they lose value, particularly as climate change dangers continue to escalate.

Also, insurance industry changes: The new flood history disclosure law comes at a time when many insurance companies are leaving Florida altogether; others are increasing rates substantially, limiting coverage, and canceling policies.

  •  AAA has stopped renewing home, auto, and umbrella bundle policies

  • Farmer’s Insurance has left the state

  • 11 other homeowners insurance companies that did business in Florida have liquidated since 2017

  • 5 of those 11 companies liquidated in 2022 alone

Meanwhile, in condo land: Prices continue to fall, largely thanks to a change in the Florida Condominium Act.

  • The amendment requires condo associations to maintain adequate reserve funds for maintenance and repairs.

  • Condo associations are passing on these additional costs to condo owners through increased (sometimes surprise) monthly fees—which just may be enough to push condo owners to sell.

Price and value comparisons: A property with an increased flood risk carries higher and higher costs. Buyers can spend a similar amount of money and incur less risk by buying in a non-flood-prone area.

The bottom line: When the new flood history disclosure law goes into effect on October 1, homes with a lower disaster risk and accompanying lower insurance costs will likely become increasingly popular with buyers.

We were recently discussing that many readers don’t know 1) that we changed our name from Joseph E. Seagle, P.A. to Aspire Legal Solutions PLLC, or 2) why we made the change.

  • This week’s video is my explanation of this change.

Listen in or watch on your favorite channel.

3. Catch up fast

  1. Mortgage rates drop again on hopes of a Fed rate cut. MPA Mag

  2. Florida has banned the intentional release of balloons. Bungalower

  3. Mortgage applications rise for third straight week. MPA Mag

  4. This homebuying season is a dud, the worst in a decade. What went wrong? Barron’s

  5. Only 39% of renters make enough to afford the median rent in the U.S. Redfin


4. Closing Thought

My plane for my ATL flight on Thursday was delayed by two hours. A storm rolled over MCO as it was landing. The pilot was prevented from pulling up to the ramp for 30 minutes because no ramp crew could guide him. However, I guess the stress got to him, and he finally just pulled in without assistance and parked. The gate crew pulled the jetway up, and passengers deplaned. The pilot got out in the storm and hooked up the electrical as his passengers deplaned. It's been there over an hour, and no luggage has come off, nor has our luggage been loaded. We thought the impatient pilot would start unloading bags at any second. When/if the lightning moves far enough away, we can all get moving again. But now we know there's at least one pilot out there who channels his stress to get sh*t done for his passengers

Change Your Mindset about Stress to Boost Performance

Why it matters: Entrepreneurs often face chronic stress, and that pressure hinders performance. Adopting a new perspective on stress can transform it into a tool for growth and resilience.

Context: Research shows that gratitude and radical acceptance can mitigate the adverse effects of stress.

  • However, another strategy is seeking out new stressors to build resilience.

  • This concept, hormetic stress, is like exercise for your nervous system.

Hormetic Stress Explained: Hormetic stress involves exposing yourself to short, manageable bursts of stress to strengthen your biological resistance. Just as vaccinations build immunity, these stress episodes can fortify your nervous system.

How it works: Hormetic stress isn’t about facing life-threatening situations but engaging in activities that elevate your heart rate and get your blood pumping.

  • Exercise is a prime example.

  • Studies indicate that short bursts of exercise create a positive hormetic stress response, enhancing overall health and resilience.

Evidence: One study found that caregivers who exercised three to five times a week experienced less inflammation than those who didn’t. This stress from exercise slows down inflammation and may even reverse its effects.

Actionable Steps:

1. Incorporate Exercise: Engage in regular, short bursts of physical activity.

  • This can be as simple as a brisk walk, a quick jog, or a short high-intensity interval training (HIIT) session.

2. Seek New Challenges: Embrace opportunities that push you out of your comfort zone.

  • These stressors can build resilience, whether learning a new skill or tackling a challenging project.

3. Practice Gratitude and Acceptance: Cultivate a habit of gratitude and practice radical acceptance to buffer the effects of chronic stress.

The bottom line: By changing your mindset towards stress and actively seeking manageable stressors, you can enhance your resilience, improve your performance, and achieve better results in your entrepreneurial endeavors.

Go deeper: The Happiness Lab – Dr. Laurie Santos

We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

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  • Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804

Be on the lookout for our next issue! 👋


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