For decades, many people bought or rented homes on the New Jersey shore without a clear answer to a simple question: has this place flooded before? A state law signed in July 2023 changed that. Since March 20, 2024, sellers and landlords across New Jersey have had to share specific flood risk information before a deal is signed.
From Beach Haven to Cape May, that affects how shore buyers, year-round renters and landlords should think about flood insurance. Here is what changed and what to do about it.
What the law requires of sellers
According to the New Jersey Department of Environmental Protection, sellers of real property must disclose flood risk information on a property condition disclosure statement before the buyer is obligated under the purchase contract. That includes:
- Whether the property is in FEMA’s Special Flood Hazard Area (often called the 100-year floodplain) or Moderate Flood Hazard Area (the 500-year floodplain)
- What the seller actually knows about flood risk at the property, such as past flood damage
The state’s Flood Risk Addendum is required for both residential and non-residential sales.
What the law requires of landlords
Landlords must tell prospective tenants, before a lease is signed or renewed, whether the rental is in one of those FEMA flood areas and whether the landlord knows of past flooding at the unit or its parking areas. For written residential leases, the notice has to be a separate rider that the tenant signs or acknowledges. Seasonal rentals of less than 120 days are exempt, so a typical summer week in Wildwood or Avalon is not covered by this part of the law. Year-round and long-term rentals are.
The law also requires residential leases to tell tenants that flood insurance may be available to renters through FEMA’s National Flood Insurance Program, and that a standard renters policy does not typically cover flood damage.
What it means for buyers
A disclosure is information, not protection. If a seller’s addendum shows the home is in a Special Flood Hazard Area, a federally backed mortgage will generally require flood insurance. Even if it is outside the mapped zone, a history of water in the garage or crawl space is a strong signal to ask about flood coverage. Bring the disclosure to your insurance agent early in the process, before closing pressure sets in.
What it means for renters
Read the flood rider when you get it. If the landlord says the unit or its parking area has flooded, think about your car, your furniture and your electronics. The landlord’s insurance generally covers the building, not your belongings. A renters policy usually excludes flood. Contents-only flood insurance is a separate policy. Your car’s protection from flood damage would typically fall under comprehensive coverage on your auto policy, if you carry it.
What it means for landlords
- Use the state’s model notice and keep signed copies with each lease.
- Check your own building’s flood zone using the state’s lookup tool linked from the DEP disclosure site.
- Review your flood coverage for the building. Your landlord or dwelling fire policy generally excludes flood.
- Consider loss of rents. If a flood makes units unlivable, your flood policy and your property policy may handle lost rent differently.
A few flood insurance basics
NFIP flood policies typically have a 30-day waiting period before coverage starts, with some exceptions, such as coverage purchased in connection with a mortgage. Building and contents coverage are separate. Basements and areas below the lowest elevated floor have significant limits. FloodSmart.gov explains these rules in detail, and private flood options may also be available in some areas.
Questions about a shore property?
Peak Insurance is licensed in New Jersey and works with 60+ carriers, including flood options. Whether you are buying, renting or leasing out a shore property, we can help you understand what the disclosure means for coverage. Visit our South Jersey Shore insurance page or our flood insurance page, call (855) 449-8552, or contact us.
