Natural Hazards

Natural Hazards ## The California Natural Hazard Disclosure Statement (NHD) California requires sellers of residential real property (1–4 units) to disclose whether the property is located in certain designated natural hazard zones. This is accomplished through the Natural Hazard Disclosure Statement (NHD), required under Civil Code §1103. Sellers must disclose if their property is in any of the following six statutorily required zones. Important: Third-party NHD report companies (e.g., First American Natural Hazard Disclosures, JCP) prepare these reports for a fee based on public records. Agents and sellers commonly order a professional NHD report to ensure accuracy. However, the seller (not the report company) is responsible for the disclosure. --- ## The Six Statutory Hazard Zones ### 1. Special Flood Hazard Area (SFHA) Designated by FEMA on Flood Insurance Rate Maps (FIRMs). Properties in SFHA zones (Zone A or Zone V) have at least a 1% annual chance of flooding (also called the "100-year flood" level). - Zone A: Inland flood zones; specific flood elevations not determined - Zone V: Coastal flood zones; additional hazard from wave action - Flood insurance requirement: Lenders require mandatory flood insurance purchase for federally backed loans on properties in SFHA zones - Cost impact: Flood insurance premiums can be substantial in high-risk zones ### 2. Area of Potential Flooding (Dam Inundation Zone) Areas that could be flooded if a nearby dam failed. California OES (Office of Emergency Services) maps these zones. Properties downstream of major reservoirs may be in dam inundation zones. - Relevant in areas below major dams throughout the state - Different from FEMA flood zones — this is specifically for catastrophic dam failure scenarios ### 3. High Fire Hazard Severity…