The Florida rule investors should have on their checklist
The Florida Insurance Consumer Advocate’s property-insurance page says Senate Bill 948 strengthened flood-risk disclosure requirements and lists an effective date of October 1, 2025. For residential landlords, the page says the disclosure must be provided before or when the rental agreement is executed.
The disclosure includes any knowledge of flooding damage that occurred during the landlord’s ownership, including insurance claims filed and assistance received to repair damages. The page also describes a tenant remedy if disclosure is not provided and substantial flood-related property damage occurs: the tenant may terminate the rental agreement in writing and vacate within 30 days after the damage or loss, with a prorated refund from the landlord.
Why this matters for DSCR underwriting and operations
DSCR financing looks at the property’s income and expenses, but a durable rental plan also depends on insurance, maintenance, local rules, tenant disclosures, and the building’s condition. Flood history can affect all of those. A property may look attractive in a rent worksheet while still carrying documentation or operating risks that deserve review before closing.
Review the property before you rely on the rent
Joe Pistone & Team can help you organize the property, lease, insurance, and cash-flow questions for a DSCR conversation.
Start Your Free Eligibility Check →Florida DSCR flood-risk checklist
- Ask the seller or manager what flood damage is known. Keep the answer and supporting records in the property file.
- Request insurance and claim documentation. The official summary specifically refers to insurance claims and assistance received to repair damage.
- Build the disclosure into the lease process. Give the notice before or when the residential rental agreement is executed.
- Check local flood exposure and insurance separately. A disclosure is not a substitute for insurance advice, an inspection, or a flood-zone review.
- Keep the lender’s file consistent. If the appraisal, insurance file, lease plan, and property manager’s information conflict, pause and resolve the difference.
For related property analysis, see our DSCR appraisal and rent-schedule guide and cash-reserves guide.
Illustrative operating example
Assumption: an investor buys a small Florida rental and plans to sign a new lease after closing. The investor should preserve the known flood history, insurance claims, repair-assistance records, and signed disclosure in the property file before the lease is executed. This example is a process illustration, not legal advice and not a prediction about a specific property.
Frequently asked questions
Do Florida landlords have to disclose known flood damage?
The Florida Insurance Consumer Advocate’s summary of Senate Bill 948 says landlords must provide the required flood disclosure before or when a residential rental agreement is executed, including known flooding damage during the landlord’s ownership and related claims or assistance.
When did the flood-disclosure requirement take effect?
The official summary lists October 1, 2025 as the effective date for Senate Bill 948’s flood disclosures.
Does a flood disclosure replace a flood inspection or insurance review?
No. The disclosure is one part of the file. Investors should separately review flood exposure, insurance, property condition, local requirements, and the lender’s documentation needs.
Can a tenant end the lease after flood damage?
The official summary says a tenant may terminate in writing and vacate within 30 days after substantial flood-related loss or damage when the required disclosure was not provided, with a prorated refund from the landlord.
Source: Florida Insurance Consumer Advocate, Property Insurance Changes.