Minnesota Gov. Signs Flood Insurance Disclosure Bill

Minnesota Gov. Tim Pawlenty has signed legislation (S.F. 2980) that requires insurance companies and agents to annually notify homeowners if their insurance policy does not include flood coverage. The required notice will also remind homeowners that they have the right to purchase flood insurance if they so choose.

Gov. Pawlenty proposed the legislation on Aug. 24, 2007 in response to the floods that hit southeastern Minnesota in 2007, where many homeowners were unaware that flood insurance was not included in their home insurance policy or believed that flood insurance was not available to them.

"During my visits to southeastern Minnesota last year, many homeowners were unclear about their flood insurance eligibility," Gov. Pawlenty said. "This new law will help consumers by giving them more information about their insurance coverage options. We are hopeful this will increase the number of homeowners purchasing flood insurance so that more Minnesotans will be covered the next time flooding hits our state."

The legislation requires written notice be provided to homeowners stating their policy does not include flood insurance and that they have the right to purchase flood insurance, provided their community participates in the National Flood Insurance Program (NFIP). Homeowners who live in a flood zone must purchase flood insurance from the NFIP.