The Insurance and Real Estate Committee of Connecticut convened on January 30, 2025, to address critical issues surrounding flood insurance and the implications for property owners. The meeting highlighted the increasing risk of flooding in the state, with 16 federal disaster declarations recorded over the past 23 years, 12 of which occurred since 2010. This has resulted in over $380 million in federal assistance, excluding COVID-related aid, which could add an additional $50 million.

A significant point of discussion was the growing trend of flooding as one of the fastest-rising risks in the country. Committee members emphasized the need for a paradigm shift in how consumers perceive flood risk, particularly for those outside FEMA-designated flood zones. Education and increased awareness were identified as essential strategies to change consumer attitudes and improve preparedness.

The meeting also addressed the limitations of current flood risk disclosures in Connecticut. Unlike at least ten other states, Connecticut does not require sellers to disclose whether a property has previously flooded. A survey indicated that 74% of respondents favor such disclosures, underscoring a public demand for greater transparency.

Legislative proposals were discussed, focusing on enhancing the role of mortgage companies in informing buyers about flood risks at the time of purchase. The committee explored ways to ensure that consumers are adequately informed throughout the buying process, including the responsibilities of insurance agents and brokers.

Additionally, representatives from local insurance companies, including Hartford and Travelers, noted their commitment to providing clear notifications regarding the absence of flood insurance in their policies. The meeting concluded with a call to action for improved communication and education regarding flood risks, aiming to empower property owners to make informed decisions about their insurance needs.