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Connecticut’s Proposed Flood Disclosure Law: What It Means forHomeowners, Renters & Real Estate
- Mark Vincent Ellema
- 5 days ago
- 4 min read
Every year, Connecticut homeowners, renters, and commercial property investors face rising flood risks— but many are unaware that their standard insurance doesn’t cover flood damage. That’s set to change with the proposed S.B. 1245 – An Act Establishing a Resilient Connecticut Strategy, slated to take effect July 1, 2026 if passed.
Here’s the catch: the bill would require insurance producers—agents and brokers—to notify applicants when a homeowners, renters, or commercial property policy doesn’t include flood coverage. They must provide a written disclosure, obtain a signed acknowledgment, and record whether clients decline flood protection—all key steps designed to protect consumers by shining a light on previously overlooked gaps.
Why does it matter to you? Because flooding isn’t confined to coastal areas—heavy rainfall, flash floods, and rising waters can happen anywhere, anytime. With climate change intensifying weather patterns, more Connecticut residents, real estate developers, and business owners find themselves at risk. And even savvy policyholders can mistakenly believe their policies will cover flood damage.
That’s where Insure Connecticut, LLC comes in. As your trusted local agency, we’re ready to guide you through these changes. Whether you need help understanding the implications of S.B. 1245, navigating FEMA flood zone maps, or selecting the right flood coverage through the National Flood Insurance Program (NFIP), we’re here to help. Don’t let surprise gaps in your protection lead to financial stress—let’s ensure you're covered now.
What the Proposed Law Means for Connecticut Residents
Quick Checklist for Real Estate Developers
Before purchasing land:
Check FEMA flood maps for updated zoning.
Ensure you can obtain elevation certificates.
Verify disclosure requirements with your legal team.
Confirm whether public funding or permits may be impacted post-Dec 2025.
1. Mandatory Disclosures by Insurance Producers
Under S.B. 1245, starting July 1, 2026, agents and brokers must:
Provide a written notice confirming flood coverage isn’t part of standard homeowners, renters, or commercial insurance policies
Explain that flood insurance is available through the NFIP or private carriers
Secure a written acknowledgment, including if coverage is declined
This creates transparency and helps prevent costly misunderstandings—but it also adds steps to producers’ workflows.
2. Bold Flood Notices on Policies
Policies issued post-implementation will feature an obvious, all-caps declaration stating:
“FLOOD COVERAGE IS NOT PROVIDED UNDER THIS INSURANCE POLICY.”
This will be clearly printed on the first page of each new or renewed policy—making it unmistakable for the consumer.
3. Mortgage Lender Responsibilities
Mortgage lenders will now be required to:
Notify borrowers in writing that standard homeowners insurance does not cover flood damage
Collect signed acknowledgments at closing
Retain these documents for audit and compliance purposes
This aligns with practices already in place in states like New York and Florida.
4. Seller & Landlord Flood Risk Disclosures in Real Estate
Starting July 1, 2026:
Sellers must disclose whether the property lies in a FEMA floodplain, past flood damage, FEMA disaster assistance received, and any elevation certificate.
Landlords must provide disclosures at lease signings or renewals. Leases must also contain a notice explaining that renter’s insurance does not include flood coverage, and that separate flood insurance is recommended.
Learn more about renters' insurance options.
This requirement also indirectly affects commercial real estate investors and property managers who rent out multi-family or mixed-use buildings. Failing to comply could impact tenant relations and expose investors to legal or financial liability. For developers and builders, these disclosures may also complicate the sales or leasing process unless proactively addressed during planning and permitting phases.
5. New Construction Restrictions in Flood Zones
Effective December 1, 2025, state funding will no longer support new or expanded residential or commercial construction in high-risk floodways or coastal zones, unless projects comply with FEMA elevation standards.
This carries major implications for real estate developers, construction firms, and investors seeking to break ground in desirable but flood-prone areas.
Did You Know?
Over 20% of flood insurance claims come from properties outside high-risk flood zones. Even inland commercial and residential developments in Connecticut are increasingly vulnerable due to shifting weather patterns.
Current Trends & Future Outlook
Rising Claims from Unexpected Flooding
The last 18 months have seen rising insurance claims in inland Connecticut neighborhoods once considered “low risk.” That’s leading many cities, like West Hartford and Simsbury, to update drainage infrastructure and zoning maps. These updates could significantly alter site viability and permit approvals for developers.
Modernizing Risk Modeling
NFIP's Risk Rating 2.0 now factors in things like distance to water and property elevation—making premiums more accurate but also more variable. Commercial insurers may follow suit, introducing more granular data requirements for commercial buildings.
Legislative Momentum
Connecticut’s law aligns with moves in New Jersey, New York, and California. In fact, the FEMA Best Practices guide recommends these disclosures nationwide. Stakeholders in development, investment, and property insurance should monitor similar efforts in neighboring states.
Conclusion
Connecticut is taking bold steps to increase transparency, reduce climate risk, and protect its residents and commercial investors from devastating financial loss due to flooding. Whether you’re a homeowner, renter, landlord, real estate developer, or investor, understanding your flood exposure—and taking proactive steps—is essential.
At Insure Connecticut, LLC, we’re ready to help. From navigating FEMA flood zones to selecting the right policy and staying compliant with evolving state laws, we’re your trusted guide.
Visit us: www.myinsurect.com
Call us: 860-440-7324
Request a flood insurance review online