Natural Hazard Disclosure (NHD)

Last Days of Pompeii by Karl Briullov

What is a Natural Hazard Disclosure?

California state law requires sellers to provide buyers with a Natural Hazard Disclosure (NHD) statement as part of the disclosures made by the seller during escrow. The NHD report indicates whether or not the property is located in a ‘Hazard Area’.

No matter where you live in the world there is always some kind of natural hazard. For the people of Pompeii (pictured dramatically above), and Hawaii today, one natural hazard is Volcanoes. In Florida there are hurricanes. In Oklahoma there are tornadoes. In California our main natural hazard is earthquakes.

How much does a Natural Hazard Disclosure Cost?

$75 to $100. Natural Hazard Report is customarily a seller closing cost. 

Sample Natural Hazard Disclosure:

Sample Natural Hazard Report

The Major hazards in Los Angeles are: Flood Hazard Area, Dam Inundation Zone, Very High Fire Hazard Zone (if so it may be difficult to get fire insurance), Earthquake Fault and Seismic Hazard Zones.

Flood Zone:

Dam Inundation Zone:

There are several dams and reservoirs on the Westside: Encino Reservoir, Stone Canyon Reservoir, Franklin Canyon Reservoir, Mulholland Dam, and Silverlake Reservoir. In California history there has been two major dam breaks: St. Francis Dam (1928) and Baldwin Hills Dam (1963).

Baldwin Hills Dam

Baldwin Hills Dam Burst.

Very High Fire Hazard Zone

Hillside areas in Malibu, the Santa Monica Mountains, Verdugo Mountains, and the Palos Verdes Hills are all Very High Fire Hazard Zones.

These hillside areas have a lot of trees and brush that can burn in wildfires, especially during a drought. Bel Air had a big fire in (1961) and more recently Malibu in (2007).

Homeowners insurance in Very High Fire Hazard areas is more expensive and harder to get.

Earthquake Zone

The NHD goes on to include additional hazard information like proximity to Commercial or Industrial, airport, mining operation, hazardous waste, Mello Roos Tax, and future tax increases.

Natural Hazard Disclosure Companies: