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GLOSSARY — REAL ESTATE TERMS

Natural Hazard Disclosure

The Natural Hazard Disclosure (NHD) is a California-required statement identifying whether a property sits within one of six state-designated hazard zones, including flood, wildfire, and earthquake fault zones.

What the NHD identifies

California is the only state requiring this specific disclosure, which identifies whether a property falls within any of six hazard zones: special flood hazard areas, dam inundation areas, very high fire hazard severity zones, wildland fire areas, earthquake fault zones, and seismic hazard zones.

Why it matters beyond disclosure

A Very High Fire Hazard Severity zone designation, for example, can affect insurance availability and premiums well beyond the disclosure itself -- an increasingly relevant factor in areas like the San Bernardino Mountains and parts of Ventura County. Buyers should treat the NHD as a starting point for insurance research, not just a compliance form.

Where this matters most in your service area

Areas like Ojai, Big Bear Lake, and the San Bernardino Mountains commonly fall within Very High Fire Hazard Severity zones, which increasingly affects both the availability and cost of homeowners insurance -- buyers in these areas should confirm insurability during their contingency period, not assume it.

WHAT TO DO WITH YOUR NHD REPORT
  • Check your specific hazard zone designations before waiving related contingencies
  • Call an insurance agent early if the property sits in a fire hazard zone
  • Ask whether the current owner's insurance policy could transfer or inform your quote
  • Confirm insurability before closing, not after
RELATED TERMS
Transfer Disclosure StatementAs-Is SaleInspection ContingencyTitle Insurance
Who prepares the NHD report?
It's typically ordered from a specialized reporting company, though the seller is legally responsible for disclosing the information it contains.
Does a hazard zone designation mean I can't get insurance?
Not necessarily, but it can significantly affect availability and cost, particularly for fire hazard zones. Buyers should confirm insurability during their contingency period, not after closing.
Is the NHD the same as the Transfer Disclosure Statement?
No -- they're separate required disclosures. The TDS covers the seller's knowledge of the property's condition; the NHD covers objective hazard zone data from state and local mapping.