As a lender, insurance, real estate or other professional, you may ask; What purpose does disclosure serve?

The answer is "many". As consultants specializing in floodplain management and the National Flood Insurance Program (NFIP), we frequently find consumers and clients stating; "We were not aware of that" or We were never informed about that" when finding out about specific aspects of floodplain management and the NFIP. While disclosure is not mandated by the NFIP, we believe consumers have a "right to know" how decisions involving floodplain location and mandatory purchase of flood insurance were determined and that federal appeals processes exist. Accordingly, we designed the flood disclosure to benefit both the issuing professional and the consumer.

Real estate professionals have the first opportunity for disclosure at the initiation of a sale or acquisition of a flood prone property. The seller needs to know if the subject property and/or structure is flood prone, potential impacts affecting the sale and development, and if there is potential for a successful appeal (Letter of Map Change, LOMC). The buyer needs to be aware of the possible restrictions and conditions on development, the flood insurance purchase requirement and the potential for successful appeal (LOMC). These items have a potential to affect price, sale of a property and potential for litigation. We believe the disclosure creates an awareness by the seller/buyer and protects the real estate professional.

Lenders are federally mandated to notify and require the purchase of flood insurance as a condition of a federally backed mortgages or other loans on flood prone property. Their decision is usually based on a determination made by a flood zone determination company. Determinations are based on the information provided and may be made on the property and/or structure location. The lender requires the purchase of flood insurance without notification of available appeals processes, Letters of Map Change (LOMC). We believe the disclosure informs the consumer to the basis of the decision, the awareness of the appeals processes and protects the lender.

Insurance professionals may also benefit from the use of the disclosure relative to flood insurance premium rating. It informs consumers to the basis for the flood zone determination, advised them of the program appeals processes and protects the insurance agent/broker.

Disclosure by the various professionals at appropriate times relative to floodplain decisions provides the consumer information concerning the basis of a determination and the potential for appeals. It is up to them to follow up with the FEMA, the state coordinating agency or a floodplain professional for additional information and assistance.

We hope you will use the disclosure for notification of clients relative to floodplain issues affecting them and at the same time limiting your exposure to liability.

A Flood Hazard Appraisal (FHA) by Knapp Associates completed early in the proposed sale or purchase of potentially flood prone property can protect all the professionals and consumers involved and provides a:

	~ relationship of the property and insurable structures to the federally identified flood hazard areas.
	~ review of the accuracy of flood mapping relative to existing conditions.
	~ review the potential for successful appeal, Letter of Map Change (LOMC)
	~ review for post FIRM development compliance.
	~ determination of the correct flood Zone for insurance rating.
	~ evaluation of alternatives to reduce exposure to flooding.
	~ mitigate non compliance.

FHAs are certified, guaranteed 100% accurate and insured.