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H 1087

An Act relative to civil liability for improper flood hazard determinations

194th Legislature (2025-2026) Introduced by Bruce Ayers

The bill lets property owners sue professionals who improperly complete flood hazard determinations for banks or insurers, to recover damages and legal costs.

Accompanied a study order, see H5336
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Bill Summary · H 1087

Summary of H.1087: An Act relative to civil liability for improper flood hazard determinations

Purpose and intent

This bill creates a civil liability framework to address improper flood hazard determinations. It targets situations where a standard flood hazard determination form—used by banks or insurance companies to classify whether a building is in a Special Flood Hazard Area (SFHA)—is completed improperly for a fee or with a service guarantee. The aim is to hold certain professionals and entities accountable when a faulty determination leads to damages, including issues related to flood insurance eligibility.

Key provisions

  • New Section 70 added to Chapter 183 (inserted after existing section 69):
    • Who may sue: The owner of a building or structure may bring a civil action against a company or contractor who completes a standard flood hazard determination form for a bank or an insurance company.
    • Basis for suit: The action arises when the form is completed on behalf of a bank or insurance company, for a fee or other consideration, and with an offered guarantee for services, and the determination incorrectly designates the building as located in a SFHA or not located in a SFHA.
    • Damages at issue: The owner must have suffered damages as a result, including failure to obtain flood insurance for the property.
    • Presumption of correctness: A rebuttable presumption applies that the flood hazard determination was conducted correctly if the form is certified by a professional engineer or a professional land surveyor (as defined in the referenced professional definitions).
    • Overcoming the presumption: The presumption can be overcome by the court based on a preponderance of the evidence showing the determination was conducted incorrectly.
    • Available remedies: The court may award actual damages, reasonable attorney’s fees, and court costs.

Affected parties

  • Potential plaintiffs: Owners of buildings or structures who suffer damages due to improper SFHA designations.
  • Defendants (potentially liable parties): Companies or contractors who complete standard flood hazard determination forms for banks or insurance companies.
  • Certifying professionals: Professional engineers and professional land surveyors who certify the determinations (the presumption hinges on their certification).

Procedural/timeline aspects

  • Introduced: February 27, 2025.
  • Committee action: Referred to the Committee on Financial Services (02/27/2025).
  • Current status: Hearing scheduled for May 13, 2025, from 10:00 AM to 1:00 PM in hearing room A-2.
  • Legislative actions to note: Senate concurrence indicated in the posted actions; the bill is part of the 2025-2026 session (Bill No. H.1087, House Docket No. 2212).

Practical implications and impact

  • The bill increases accountability for flood hazard determinations tied to mortgage and insurance activities.
  • It creates a pathway for homeowners to seek damages if a determination incorrectly places a property in or out of the SFHA and leads to costly consequences (e.g., mandatory flood insurance).
  • The presumption of correctness promotes professional certification as a safeguard, but it is rebuttable, placing a factual burden on the plaintiff to demonstrate error.
  • Potential impacts on lenders, insurers, and contractors who prepare flood determinations, possibly affecting standard operating procedures, verification processes, and cost structures.

Related context

  • Similar matter previously considered (House 928 in 2023-2024).
  • The bill’s framework and definitions tie into existing professional licensure provisions (professional engineers and professional land surveyors) and the broader flood insurance regime.

Compiled from official sources — confirm details with the bill’s official record.

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