Natural hazards disclosure (NHD) report

A natural hazards disclosure report is a report that is required by the state of California. It informs consumers if a property is based in an area that contains a higher risk of disasters. This aims to protect a property and its owner from any event that affects the future use of the property. The report typically costs anywhere between $50 to $200 and tends to be covered by the seller.

NHD reports can be as long as 40 pages and it states any potential hazard. This includes but is not limited to landslides, floods, wildfires, radon gas, and earthquakes. In certain cases, it could also include other possible disturbances, such as noise pollution if an airport is situated nearby. Essentially anything that can make a home’s insurance more expensive should be listed on the NHD report.

The purpose of the report is to make the buyer fully aware of environmental hazards which can damage their property. It also protects sellers from potential lawsuits from upset buyers that didn’t know that a property was located in a region hypothetically prone to fires. Once the buyer gets the NHD report, they usually have three days to review the report and decide if they’d like to proceed with the purchase.

If the property is located near a potential hazard, the buyer may be required to purchase hazard insurance for the property in question.

While required by law in California, sellers may have to disclose information regarding potential natural disasters in other states.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on pocket
Share on reddit
Share on telegram
Share on email
Share on print