Trying to Sell a Repetitive Loss Property? Avoid This #1 Deal-Killer

Many sellers don’t realize their home’s FEMA flood history could stop a sale in its tracks — until it’s too late.

Repetitive Loss (RL) or Severe Repetitive Loss (SRL) properties often face higher insurance costs, disclosure requirements, and stricter lending. If buyers discover this late, it can delay — or kill — the deal.

We’ve seen transactions fall apart days before closing because the RL status wasn’t disclosed early. Trust erodes, premiums shock buyers, and deals collapse.

The #1 Mistake Sellers Make: Waiting to Disclose

Waiting to tell buyers your home is on the Repetitive Loss list is the biggest mistake sellers make. Why?

• Buyers feel blindsided.
• Lenders panic and delay closing.
• Insurance quotes become a last-minute scramble.

If the flood insurance premium is due upfront (as is often the case with SRL homes), a late disclosure can completely shift buyer sentiment.

What Happens When You Don’t Disclose Early

• Lost leverage: Buyers may renegotiate or walk.
• Last-minute surprises: Lenders may require the full year’s premium at closing.
• Agent confusion: Not all agents understand NFIP or SRL protocols.
• Deal erosion: Delays and doubts lead to broken trust.

How to Sell a Repetitive Loss Home the Right Way

Step 1: Disclose Early

Transparency up front earns trust — and gives buyers time to prepare.

Step 2: Get an NFIP Quote in Advance

Don’t wait for the buyer to chase this down. Control the process.

Step 3: Provide Documentation

Elevation certificates, mitigation upgrades, claim history — every document builds buyer confidence.

Step 4: Use a Flood-Savvy Agent

Many real estate pros aren’t NFIP appointed. Work with one who is — or partner with an insurance team that can step in.

Get the Seller Checklist

Need a step-by-step guide to protect your listing?