Flood and Fire Risks Are Frequently Undisclosed

Photo courtesy of Freephotos.com.

By  Helen Gloege ’23
Staff Writer

Since 2016, over 1 million natural disaster displacements have occurred each year in the U.S. It is predicted that the number of people who will be displaced by natural disasters like hurricanes and wildfires will increase. By 2100, 6 feet of sea-level rise could force 13.1 million Americans to relocate. Climate change will soon factor into homebuyers’ and renters’ choices of where to live, but most are not warned about flood or wildfire risk in their new homes. They often pay for the resulting damages financially and beyond, in lives lost and the toll on physical and mental health that can last for years to come. The annual number of floods and wildfires that exceed $1 billion in damage has increased in recent years. Between 2015 and September 2020, there have been 28 of these disasters in the United States.

Fire prevention is on the minds of those who live in Western states, and there is political division on how best to prevent fires. The governors of California, Oregon and Washington have all indicated that climate change is the reason for the fires. President Donald Trump, however, has argued that the fires resulted from how the states manage their forests. 

Scientists have pointed toward forest thinning and controlled burns as solutions. However, complicating this is the influx of people moving into rural areas or building vacation cabins in the woods, leading to populated small acreages. This means that, if controlled burns were to escape, they would most likely move onto someone’s property.

Millions of people living in the West have moved into fire-prone landscapes with little warning of risk from government, real estate agents or sellers. Between 1992 and 2015, about 60 million homes were within less than a mile of a wildfire, and that number has since increased. 

Only Oregon and California require wildfire risk to be disclosed to residents. Frequently, this disclosure amounts to a few lines buried in hundreds of pages of text. In Oregon, homebuyers didn’t see the word “wildfire” mentioned in a disclosure statement recorded during a sale, only a line that said the property was in the “forestland-urban interface.” In California, there is a special form for disclosing natural hazards that states risk level, but these rules are only enforced in some parts of the state. If this applies, homeowners are responsible for clearing flammable brush and dry vegetation that would create a defensible space between the house and the fire. 

California lawmakers passed a bill in 2019 that increases wildfire disclosure. This law includes that, starting in 2021, sellers must inform the buyer if they are following flammable brush rules and provide a list of potential ways their house may be susceptible to fires. Starting in 2025, sellers must say if they have completed retrofits to make the house more fire-resistant. 

Even if states did want to disclose wildfire risk, the information isn’t always available. Wildfire risk mapping involves detailed modeling because fire behavior fluctuates greatly. In 2020, the U.S. Forest Service released new maps showing community risk nationwide, but the maps aren’t scaled to use for individual properties. According to NPR, “Insurance companies have done the most detailed risk analysis but most homeowners won’t find out unless the insurance rates go up or their policy is canceled.” Additionally, most existing wildfire maps don’t reflect the added risk from climate change.

The decision made to build in these fire-prone areas is usually made by developers and local officials. They are frequently guided by large-scale zoning plans that don’t take wildfire risks into account. These local governments are financially incentivized to allow new development in risky areas. Homeowners need to know wildfire risks to allow them to make informed decisions. Homebuyers will also be more likely to have evacuation plans and take fireproofing steps. They will understand that preparing for wildfires isn’t a one-time job. 

Wildfire risk is not the only natural disaster with a lack of transparency. Growing research has suggested that flood risk also falls under this category, despite the growing risk due to climate change. There are an estimated 15 million properties that have a significant risk of flooding. Between 1980 and 2017, about 80 percent of presidential disaster declarations were for events that involved flooding; however, only 29 states require flood disclosure laws. The 21 states that don’t require information include some of the most vulnerable, like Florida, Virginia and Massachusetts. 

Residents of states that do require flood risk disclosure frequently don’t know they live in harm’s way until it is too late. In 27 of the 29 states that require disclosure, potential buyers receive information about flood risk after they make an offer on the house. The information often isn’t clear as most states’ requirements involve a single check box if the property is on an official flood plain. This may not be an accurate indicator of flood potential, as official flood maps have hard lines between areas with high flood risk and little to no flood risk. 

In addition, nearly one-third of all flood damage occurs outside of official flood plains. After Hurricane Harvey hit Texas in 2017, a law was passed requiring sellers to tell buyers if the house is in a flood zone and if they had flood insurance. Similar attempts in other states have stalled due to a fear of driving down property values. Indeed, research has suggested that disclosing flood risk may cause a decrease in property values by about 4 percent.

Future and current homebuyers may not listen to maps or data. However, the clear dissemination of information regarding fire and flood risk would allow the increasing number of homeowners moving into high-risk areas to understand the possible dangers and take precautions by purchasing flood insurance or making a house more fire-resistant.