Governor’s Bill No. 1245 aims to enhance flood risk awareness and resilience in Connecticut through a series of new requirements and provisions. Effective July 1, 2026, insurance producers and surplus lines brokers must inform applicants for personal risk insurance about the availability of flood insurance, including options through the National Flood Insurance Program, and obtain written acknowledgment of this disclosure. Additionally, insurance companies are required to include a notice on personal risk insurance policies indicating that flood coverage is not included. The bill also mandates creditors to inform mortgage loan applicants about the absence of flood coverage in standard homeowners insurance and requires sellers of residential real estate to provide a flood disclosure notice detailing flood-related risks. Notably, the bill introduces a $500 credit to buyers if sellers fail to provide necessary disclosures and requires landlords to provide flood disclosure notices to tenants for rental agreements executed or renewed after July 1, 2026.

The bill further establishes provisions for the creation of "resiliency improvement districts" within municipalities to address climate change impacts, allowing municipalities to acquire property, issue bonds, and implement projects aimed at enhancing resilience. It mandates the development of a district master plan that includes financial plans and requires public hearings before establishing such districts. The bill also emphasizes the importance of integrating climate change considerations into municipal planning and development processes, including the requirement for climate change vulnerability assessments in plans adopted after October 1, 2026. Additionally, it introduces new definitions and frameworks for sustainable development practices, including incentives for renewable energy use and the transfer of development rights. Overall, Governor’s Bill No. 1245 reflects a comprehensive approach to improving flood resilience and integrating climate considerations into state and local planning efforts.

Statutes affected:
Governor's Bill: 20-327c, 7-364, 8-23, 28-5, 8-2e