What is the Importance of the Natural Hazard Disclosure Report (NHD)?

When you buy real estate, you need to understand whether the property is structurally sound and has not been eroded by the effects of the weather. More significantly, it is important to know if the geographic location of the property makes it a risky place to buy.

Mitigating Hazard Risks through NHD (Natural Hazard Disclosure Statement)

The Natural Hazard Disclosure requirement puts buyers at ease by providing a disclosure for property sales in California and whether they lie in areas that are more likely to suffer in case a natural disaster hits.

The purpose is the same as with all disclosures (for the buyers): making an informed decision on the right terms.

According to the Natural Hazards Disclosure Act (Section 1103 of the California Civil Code), there is a legal disclosure requirement for realtors and sellers to tell whether the property in question is part of the local natural hazard areas.

Hazards to be Disclosed in the NHD

There are 6 disclosure requirements pertaining to hazards that are covered in the Natural Hazard Disclosure Statement (NHD).

These are: FEMA flood zone, daminundation, earthquake fault zone, severe fire hazards, wildland fire areas (these two are separate), and landslide and liquefaction susceptibility (falls under seismic hazard).

Some other disclosure requirements in the NHD include geotechnical hazards, soil hazards, ground water management, radon gas potential, protected species and natural habitats, and military ordinance and defense sites.

How the NHD Helps

These attempts inform the buyer exactly where they are buying their home and help them make an informed decision and negotiate on the particular terms of the property transaction. These different disclosures can help the buyer be more realistic with their decision.

Knowing Whether You’ll Need Additional Flood Insurance

The Flood Hazard disclosure, for example, can help you see whether you are in the special flood zone (SFHA, a 100-year floodplain because of a 1% chance of flooding in any given year) and have to get federal flood insurance. This is a disclosure requirement on the seller and real estate agent to let you know if you are part of the SHFA and need to get additional flood insurance.

Knowing Whether You’re in a State Fire Responsibility Area

Similarly, a Severe Fire Hazard Zone disclosure allows you to find out if you need to pay an SRA Fire Prevention Fee just because you decide to purchase a new property. The fee is only applied to habitable structures according to the Assembly Bill X1 29.

You’ll be clear of such additional expenditures with the help of the NHD disclosures from realtors and sellers. You can read reviews of different NHD Companies at Homesumer.com

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